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EBRD loan helps rehabilitate Romanian county roads
€15 million for infrastructure improvements in Brasov county
Brasov will be the first county in Romania to receive an EBRD loan to help
finance the rehabilitation of approximately 60 kilometres of regional roads.
€5 million of the total €15 million loan will be syndicated to the Austrian
Niederoesterreichische Landesbank-Hypothekenbank.
The financing will introduce performance based multi-year contracting into
road maintenance to increase the efficiency of spent funds. Under these
contracts remuneration paid to the contractor is based on measured
‘end-products’ or ‘outputs’ reflecting ‘service quality levels’ on the roads.
The project includes technical support to improve the county’s road database
and to prepare EU Structural Funds applications.
Thomas Maier, EBRD Director Municipal Environment and Infrastructure, said the
introduction of performance based contracting will lead to improved service
levels in Brasov, the first county in Romania with this type of contracting.
This innovative approach is also important in light of the country’s
forthcoming EU accession.
Brasov county is an existing client of the Bank as guarantor for the EBRD’s
loan to the local water company, Compania Apa. The new project builds on the
strong working relationship which has been developed due to the county’s
.commitment to increasing efficiency in the delivery of public services.
In October 2005 the Bank signed two loans of €15 million each with the city of
Brasov and its public transport company. The administration and financial
budget of the city are independent of the county.
The EBRD is the largest single investor in Romania having committed more than
€3.2 billion in over 90 projects to-date. In the municipal and environmental
infrastructure sector in Romania alone the Bank has provided 22 loans worth
some €380 million,. Across its 27 countries of operations the EBRD has
invested nearly €2 billion in the MEI sector alone.
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