Project description
and objectives:
|
The proposed project provides finance to
(i) upgrade and expand Burgas regional water company’s water and wastewater
infrastructure
(ii) improves the financial and operational performance of the company
(iii) and addresses the legal and regulatory reform needed to promote
investment into the sector.
The project is designed to complement significant ISPA grant investment finance
|
Transition
impact:
|
-
Support for the commercialisation of the Company and for institutional
improvements: Technical co-operation mobilised by the Bank will promote the
commercialisation of the Company and improve its financial and operational
performance. Milestones and targets agreed with the Company will be included
as covenants in the Loan Agreement. Additional technical cooperation is
planned to establish and support a Project Implementation Unit.
-
Development of Regulatory Framework and Institutional improvements through
implementation of the Government Strategy for the Water Sector Development;
passage of new Law establishing a Water Regulator and amendment of the Water
Act; and establishment of effective and independent water regulator.
-
Demonstration effect: The Operation would be the first transaction in
Bulgaria where the Bank would lend directly to a state owned regional water
company without a sovereign or municipal guarantee
-
Improved financial planning and management for the City of Burgas. In order
to help the City to improve its creditworthiness a Creditworthiness
Enhancement Programme is planned to assist the City in defining and managing
its budget, including its capital investment plans.
|
The client:
|
Burgas is 100% state owned though the Ministry of Regional Development and
Public Works. The company currently provides water and sewage services to
approximately 426,000 inhabitants of 13 neighbouring municipalities,
increasing to 1,200,000 in the summer.
|
EBRD
finance:
|
-
Loan to the Company: €11.0 million
-
Co-finance: €20.3 ISPA Grant
-
Other sources; €0.9
|
Total project cost:
|
The total project cost has been estimated to € 33.2 million
|
Environmental impact:
|
Screened B/1.
The project has predominately environmental objectives. The environmental due
diligence, which is currently being carried out in the frame of ISPA for this
project, will assess the ability of the selected investment to bring the
facilities into compliance with applicable Bulgarian and EU environmental
standards. It will also assess possible environmental liabilities associated
with the current operation of drinking water and wastewater management
facilities.
|
Technical
cooperation:
|
Pre-signing:
CEI has approved the following:
• Feasibility Study including financial analysis, tariff and affordability
analysis: €257,233
• Environmental Impact Assessment: €46,210
Post-signing
TC needs are estimated to include:
-
Financial and Operational Improvement Plan (FOPIP) section 5.2) €300,000,
donor to be identified
-
Establishment of Project Implementation Unit (PIU) and assistance with
tendering and project procurement: €400,000, donor funds from CIDA
-
Financial planning and budgeting training and assistance for the respective
City €200,000, donor to be identified
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
EBRD contact:
|
Dontcho Barbalov, Operation Leader: barbalod@ebrd.com
|
Procurement or tendering
opportunities:
|
Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
|
General
enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
