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New EBRD investment in Romania’s water infrastructure

2011-12-15 00:00:00

he EBRD is continuing to support the modernisation of Romania’s water services with a loan to improve the quality of water supply and sanitation services to about 280,000 people in the central Romanian county of Sibiu.

The EBRD is providing a €17.1 million loan to S.C. Apa-Canal Sibiu, water utility company servicing residents in 34 administrative units in the southern, central and north-western part of Sibiu county as well as those in Fagaras town located in the neighbouring Brasov county.

The funds will be used to part-finance the construction, extension and rehabilitation of water supply and wastewater treatment systems. The project is part of the EU Cohesion Funds programme for Sibiu, worth a total of €124 million.

The investment programme will enable S.C. Apa-Canal Sibiu to reduce significantly water leakages, optimise operating costs and bring its wastewater collection and treatment system in line with EU regulations and standards.

“The EBRD is pleased to continue to support Romania in upgrading water infrastructure of the country’s municipalities. Over the last year the Bank provided €105.6 million to finance similar investments in Constanta, Iasi, Brasov, Buzau and Dambovita-Targoviste counties, helping to improve the quality of water supply and waste water services across the country and align the services to the EU standards,” said Jean-Patrick Marquet, EBRD Director for Municipal and Environmental Infrastructure.

“This project is a continuation of the cooperation between our company, the city of Sibiu and the EBRD that started in 2005, and is a reflection of the progress in financial and operational performance achieved by Apa-Canal Sibiu. The EBRD’s investment will provide the needed co-financing, which will enable our company to implement a substantial program financed by the EU Cohesion Funds", said Mircea Niculescu, Director General of Apa-Canal Sibiu SA.

The EBRD loan is part of the €200 million Regional EU Cohesion Fund Co-financing Framework (R2CF) launched in 2010 to support investments in Romania’s water and wastewater infrastructure and help municipalities absorb the financing available from EU Cohesion Funds. So far, the Bank’s investments under R2CF enabled Romanian cities to attract almost €650 million from EU Cohesion Funds. It is estimated that the framework will mobilise additional investments of approximately €1.5 billion in Romania’s water and wastewater infrastructure.

Since the beginning of its operations in Romania, the EBRD has committed over €5.4 billion to various sectors of the country’s economy.