Project description
and objectives:
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The proposed project provides finance to rehabilitate the water supply
infrastructure in the City of Stara Zagora, which is intended to remove the
rationing of water in the City. The proposed project will also improve the
Company’s financial and operational performance by providing technical
cooperation funds for the development of financial and operational performance
improvement plan for the Company.
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Transition
impact:
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The sources of transition Impact are threefold:
(i) successful utility company restructuring
(ii) testing of the regulatory environment and
(iii) energy efficiency.
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Demonstration of successful utility company restructuring
Technical
co-operation to be 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. The capacity building which will take place during the project
implementation will allow the Stara Zagora RWC to access EU structural funds
to further support its major rehabilitation programme. In addition, the
elimination of the water rationing in the city of Stara Zagora will have a
strong demonstration effect to other cities which face similar problems due to
years of underinvestment in their water networks.
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Testing of the regulatory environment
The proposed project will
play an important role in successful testing and improvement of the newly
established regulatory framework in the water sector. The Company will be able
to achieve a cost recovery tariff, which will allow it to finance its
investments on a commercial basis.
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Energy efficiency
The energy savings to be achieved through the
project, would have a demonstration effect on the energy efficiency potential
of water network rehabilitation. During the project preparation, the Bank will
estimate the levels of CO2 savings and determine whether emission sales could
be included as part of the project.
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The client:
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Stara Zagora Water Company is a regional water supply and sewage company, 100
per cent owned by the State through the Ministry of Regional Development and
Public Works.
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EBRD
finance:
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EBRD loan to the Company: EUR 9.0 million
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Other sources; EUR 1.3 million
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EBRD TC Donor grant; EUR 0.3 million
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Total project cost:
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Total project cost is estimated to EUR 11.6 million.
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Environmental impact:
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The project has been screened as B/1, requiring an environmental audit and an
environmental analysis of the proposed investments. Following the completion
of the audit, any resulting recommendations will be formulated into a
time-bound, costed environmental action plan ("EAP") which, once agreed with
the Company, will be included in the legal agreements.
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Technical
cooperation:
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Associated TC programme is Development of Financial and Operational
Performance Improvement Plan: EUR 250,000 to be identified.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Iliyana Tsanova, Operation Leader: tsanovai@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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