Project description
and objectives:
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The purpose of the project is to provide co-financing for an EU ISPA project
along with the European Investment Bank to fund the construction of the first
stage of a wastewater treatment plant for the City of Bucharest.
The project will consist of completing the first line and building a sludge
treatment facility and will be supported by ISPA capital grants. ISPA will
also provide technical assistance for the development of tender documents,
procurement and site supervision as well as institutional strengthening. The
plant will be operated by Apa Nova Bucharest under its existing concession
contract.
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Transition
impact:
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Transition impacts include:
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Commercialisation
The wastewater treatment tariff will be
designed to both operating and capital costs on a transparent basis.
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Private sector participation
The Glina WWTP will entail private
sector participation as it will be operated by Apa Nova, which is the
concessionaire responsible for providing water and wastewater services for the
City of Bucharest.
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Framework for markets
The project will improve environmental
protection by enforcing the polluters pay principle. It will do this by
imposing real increases in wastewater treatment tariffs.
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Project management demonstration effect
The WWTP will be built
through a single turn key design build contract
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The client:
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Municipality of Bucharest ( City) will be the borrower for the construction of
a wastewater treatment plant (WWTP) at Glina. Pursuant to the concession
contract executed between the City and Apa Nova Bucharest, the plant will be
operated by ANB in accordance with service levels to be negotiated between the
City and ANB.
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EBRD
finance:
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Up to EUR 10 million annuity type loan to the Municipality of Bucharest to
finance the Glina Wastewater Treatment Plant to complement grant financing
from EU-ISPA. In addition to EBRD, the European Investment Bank (EIB) will
provide a EUR 25 million sovereign loan, making this the first joint EBRD-EIB
financing for an ISPA project.
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Total project cost:
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Total – EUR 104 million, out of which:
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EBRD - EUR 10 million
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EIB - EUR 25 million
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EU ISPA Grant - EUR 69 million
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Environmental impact:
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Screened B/1.
This project presents significant environmental opportunities regarding
improving the quality of effluent, thus reducing pollution of Danube and Black
Sea. The environmental due diligence will need to be carried for this
project. It will assess the ability of the selected project to bring the
wastewater facilities into compliance with applicable Romanian and EU
environmental standards. It will also assess possible environmental
liabilities associated with the existing wastewater treatment facilities.
This project is a high priority environmental investment for Bucharest and is
important for Romania in terms of pre and post accession grant utilisation.
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Technical
cooperation:
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Technical co-operation funds for project management will be provided from EU
ISPA.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Susan Goeransson, Operation Leader: goeranss@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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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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