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EBRD loan to improve water services in Bulgaria’s second largest city
€11.4 million to cut Plovdiv’s water losses, improve water quality
Plovdiv, Bulgaria’s second largest city, and more than 730,000 people in 210 surrounding towns and villages will benefit from improved reliability of water supply and better quality drinking water as a result of a €11.4 million loan from the EBRD.
Plovdiv is becoming an important economic and industrial centre in Bulgaria and a reliable water supply system is crucial to supporting the growing economy.
The loan to Plovdiv Regional Water Company will help finance improvements to reduce water loss and to eliminate flows of untreated waste water from Plovdiv into the River Maritsa.
The Bank’s loan will help the company implement a €14.4 million programme to cut leakages, lower maintenance costs and improve the management and control of the water system and equipment.
James Hyslop, EBRD Director for Bulgaria, said this is another project which continues the trend of supporting priority investment programmes of larger Bulgarian regional water companies, confirming the Bank’s commitment to finance the modernisation of the water supply services throughout the country.
The project was developed in close cooperation with the Ministry of Regional Development which is the owner of regional water companies in Bulgaria.
Krasimir Tsvetkov, General Manager of the Plovdiv Regional Water Company, said this loan will help the company start a much-needed investment programme as soon as possible and help address the problem of water losses, bringing savings and improved control of the water system and equipment.
The Bank’s loan is complemented by €300,000 of technical cooperation funds for a comprehensive range of support services which will support the management of the company in improving its performance and strengthen its capacity to develop and implement investment projects.
The EBRD is a major investor in the water and waste-water sector in Bulgaria, which is facing significant investment needs due to investment neglect for the past 17 years.
This project is the fourth EBRD project with a regional water utility in Bulgaria, following the signing of the projects in Burgas in 2005, Rousse in 2006 and Stara Zagora in 2007. These three projects had a significant impact on the reform of this sector in terms of building institutional and regulatory framework and tariff reform.
The Bank is the largest investor in Bulgaria, having invested more than € 1.5 billion in 114 projects. In the municipal sector alone, the EBRD has invested more than € 2.5 billion in 24 countries.
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