Project description
and objectives:
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An EBRD loan will facilitate the financing of priority investments in Sofia’s water and waste-water system. Full responsibility for investments and operations has been transferred to a private party under a 25-year concession arrangement. Under the terms of the concession agreement, the utility’s service standards will be progressively increased from their current levels.
The main objective is to improve the city of Sofia’s water and waste-water services. Detailed performance targets on leakage, drinking water quality and pressure, effluent standards, etc. are contained in the concession agreement.
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Transition impact:
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The private sector provision of a municipal service is expected to have a significant demonstration effect in other Bulgarian cities and in the region as a whole.
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The client:
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The borrower is Sofijska Voda AD, a special purpose, joint stock company, incorporated in Bulgaria and responsible, as concessionaire, for the provision of water and waste-water services in the city of Sofia. The foreign sponsors in control of this company are United Utilities plc, Bechtel Enterprises Holdings Inc, and Edison SpA. The ultimate beneficiaries of the improved water and waste-water services will be the city of Sofia’s 1.2 million inhabitants.
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EBRD finance:
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Senior debt of €35 million (no other senior lenders).
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Total project cost:
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€99 million (for the first five years).
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Environmental impact:
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The project has been screened B/0, requiring an environmental analysis of the proposed investment programme. The analysis showed that the project would contribute to significant environmental improvements in water and waste-water management systems in the municipality of Sofia. The concessionaire will be required to achieve compliance with a detailed set of requirements outlined in the concession agreement. This will allow for achieving compliance with Bulgarian standards and the provisions of the relevant European Union Directives. In particular, water quality standards are expected to be achieved during the first year of the concession. The compliance level of waste-water treatment for end of contract year 2 is anticipated to be fully in line with the provisions of the EU Urban Wastewater Treatment Directive.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Iliyana Tsanova, Operation Leader: tsanovai@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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