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EBRD loan helps reduce pollution in Romanian rivers
€10 million towards a new wastewater treatment plant
Romania’s capital city, Bucharest, will build the first stage of a new
wastewater treatment plant that will help to significantly reduce pollution in
two local rivers - the Arges and Dambovita - thanks to a €10 million loan from
the EBRD. By reducing pollution, the project could generate Carbon Credits,
which may be sold bringing in revenue to the city.
The loan to the City will kick-start earlier efforts to build the plant, which
began in 1985 but fell short of completion due to lack of funds. Since
Bucharest does not have its own treatment plant, untreated sewage from the
city is the single largest pollutant to the local rivers, which also affects
the Danube and the Black Sea.
Hildegard Gacek, EBRD Director for Romania, said the loan builds on a good
relationship between the Bank and Romania in the municipal sector, and this
latest project is an environmental priority for the country. The new plant
will have a major impact on reducing untreated domestic and industrial
pollution entering local rivers, said Ms Gacek. With Romania gearing up for
accession to the European Union, it will also help bring the country in line
with EU environmental standards, she added.
Water and wastewater services in Bucharest are currently provided by Apa Nova,
a private Romanian water company. Apa Nova will manage and operate the plant,
which is being built in Glina, a suburb just outside Bucharest, once it is
operational. The new plant is expected to treat wastewater from households in
Bucharest and surrounding areas, as well as industrial waste.
The project will be cofinanced with the European Investment Bank, which will
lend €25 million, and the European Union through its ISPA programme, which is
providing €70 million in grants. It is the first time all three organisations
have worked together on one project in Romania.
The EBRD is the largest single investor in Romania having committed more than
€3.2 billion in over 90 projects. In the Municipal and Environmental
Infrastructure sector in Romania alone, the Bank has 22 loans worth around
€380 million, supporting investments of over €1.1 billion. Across the 27
countries where the EBRD works, in the MEI sector alone, the Bank has invested
nearly €2 billion.
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