Stara Zagora Water Investment Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37578

Status Complete

Location

Bulgaria

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 37578

Status Complete

Location

Bulgaria

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

27 Jun 2007

Disclosure date

27 Mar 2007

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 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.

Transition Impact

The sources of transition Impact are threefold:

(i) successful utility company restructuring

(ii) testing of the regulatory environment and

(iii) energy efficiency.

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.
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.
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.

The Client

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.

EBRD Finance

EBRD loan to the Company: EUR 9.0 million
Other sources; EUR 1.3 million
EBRD TC Donor grant; EUR 0.3 million

Project Cost

Total project cost is estimated to EUR 11.6 million.

Environmental Impact

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.

Technical Cooperation

Associated TC programme is Development of Financial and Operational Performance Improvement Plan: EUR 250,000 to be identified.

Transition impact

ETI Score:75

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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