REGIONAL OPERATING COMPANY (ROC) APA SOMES (SAMTID)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 28884

Status Complete

Location

Romania

Business Sector

Municipal Infrastructure

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 28884

Status Complete

Location

Romania

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

12 Jul 2005

Disclosure date

27 Aug 2004

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The purpose of the proposed project would be to address the long-term under-investment in small and medium sized municipalities in the water sector. The proposed project will create the basis for the establishment of Regional Water Operator (ROC) at river basin level. By providing the basis for the creation of regional utilities, the project creates economies of scale and promotes long term sustainability. The project includes 5 regions in the first phase out of which EBRD is financing Cluj Salaj area and co-financed by EU Phare and the Government of Romania.

Transition Impact

Corporate and Institutional Development: the objective of the project is to satisfy critical water and wastewater investment needs of small and medium-sized municipalities, which will improve operational efficiency.
The PHARE co-financing together with the government’s support is substantial and will alleviate affordability constraints for investments which otherwise would be difficult to finance. EBRD involvement will play a significant role in leveraging EU grant funding for environmental investments.
The project will promote the application of cost recovery principles at the local level. This will be enhanced as the project entails components for metering which will enable the ROC to accurately assess water usage.

The Client

The Clients will be:

a Regional Operating Company (ROC), a newly created limited liability company formed along river basin lines owned by an Association of Municipalities (AoM). The AoM will consist of seven participating municipalities as well as the counties of Cluj and Salaj. The newly create ROC will include the water utility of Cluj, which has experience in managing internationally financed programs such as MUDP II and ISPA.
the Romanian government as guarantor.
Salaj County as initial borrower.

EBRD Finance

Financing of €7.2 million for a stand-alone project in the Cluj/Salaj area for the creation of a regional operating company (ROC). Co-financiers for this specific project are the European Union, which will provide grant funding, and the Romanian Government. Pipe replacement in the distribution system accounts for approximately 66% of the total cost (€7.59 million). Consumer connections and meters account for approximately 16% of the total cost (€1.93 million) and appurtenances (valves and hydrants) account for approximately 6% of the total cost (€0.70 million). Rehabilitation and/or construction of new abstraction facilities, pumping stations, treatment plants and storage facilities along with monitoring account for approximately 11% of the total cost (€1.33 million).

Project Cost

Total is € 14.3MM, out of which:

Phare investment grant: € 5.4MM
EBRD: € 7.2MM
Govt of Romania: € 1.8MM

Environmental Impact

The proposed project will contribute to improvement of water supply and its quality to EU standards thus reducing public health hazards.

In addition to MUDP I, MUDP II and MELF this project will assist Romania in fulfilling its obligations under the EU accession process as well as under international environmental programmes targeting protection of the Danube River and the Black Sea.

Individual sub-projects such as ones for Cluj and Salaj will need to be screened individually and may involve environmental issues relating to building of new and/or upgrading of existing water and wastewater management facilities.

Technical Cooperation

The Bank utilised €197,000 from an EU Framework facility to support due diligence for municipal projects. This study, which looked at the feasibility of preparing a ROC, was essential in helping the Bank evaluate a structure for the project. In addition the Romanian Government has received TC funds from EU PHARE to support the development and the implementation of SAMTID programme.

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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