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EU and EBRD support Gdańsk water infrastructure
Compliance with EU environmental standards to ensure cleaner Baltic Sea
In its first transaction in the water sector, involving both a private
operator and a co-financing by a EU Cohesion Fund grant, the EBRD is lending
PLN 47 million (€12 million equivalent) to Gdańsk Water Infrastructure Company
(GIWK) for the modernisation of the water and waste water infrastructure of
the largest city in northern Poland. 75 per cent of the total project costs of
€133 million will be covered by the EU grant.
To comply with EU directives Gdańsk’s water supply and sewerage collection
system requires substantial investments. A new waste water treatment plant
requires upgrading, the sewer network must be expanded and new water intakes
will improve the quality of drinking water for the 400,000 inhabitants of
Gdańsk, a fast growing industrial and tourist centre of northern Poland.
The implementation of this project will have an important impact on the Baltic
Sea’s environment. In addition, the project’s innovative structure involving a
private sector operator and a newly-created asset holding company is of
particular importance for water companies in new EU member states where
restructuring of the water sector is still ongoing.
GIWK, which is fully-owned by the city of Gdańsk, is an owner of a water and
waste water network in Gdansk. In 1993 the network was leased to and since
then successfully operated by SAUR Neptun Gdańsk, a joint-venture of French
group SAUR and the municipality. The leasing charges will enable GIWK to
finance future capital investments and repay the EBRD loan.
Pawel Adamowicz, Mayor of Gdańsk, said that he was particularly satisfied that
through this project Gdansk will become one of the first large Polish cities
to meet EU environmental standards, ensuring the fulfilment of Poland’s
obligations and helping the city to realise its potential. The EBRD’s
capability to provide loans without sovereign or municipal guarantee will
allow the city to use its borrowing capacity to finance other urgent
investments, he added.
Jacek Skarbek, President of Gdańsk Water Infrastructure Company, expressed his
satisfaction that the implementation of this complex project will start this
summer. He credited this success to the excellent cooperation between all
parties involved.
Thomas Maier, EBRD Director for Municipal and Environmental Infrastructure,
said the project will not only modernise the city’s water network. It will
also facilitate the involvement of the private sector by improving the
efficiency and mitigating the risk, thus demonstrating how public private
partnerships can coexist with EU grants.
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