The EBRD is continuing to support the modernisation of Romania’s water services with a loan to help bring safe water supplies and sanitation services to about 400,000 people in the central Romanian county of Brașov.
The EBRD is providing a €27.4 million loan to SC Compania APA S.A. Braşov. The funds will be used to part-finance the construction, extension and rehabilitation of water supply and wastewater treatment systems across the county. The project is part of the EU Cohesion Funds programme for Braşov, worth a total of €190 million.
Under the investment programme, the company will significantly reduce water leakages, optimise operating costs and bring its wastewater collection and treatment system in line with EU regulations and standards.
The EBRD loan is part of the €200 million Regional EU Cohesion Fund Water Co-Financing Framework (R2CF) set up by the Bank in order to help Romanian municipalities benefit from the financing available from EU Cohesion Funds. Technical cooperation support for the project is provided by the EBRD Shareholders’ Special Fund.
“Improving water supplies and sanitation services remains a top priority for Romanian municipalities. It is crucial that they are able to improve their infrastructure and absorb efficiently EU Cohesion funds. We will jointly bring significant benefits for the Brașov county residents, and help bring water and wastewater services into line with the EU standards and at affordable tariffs. That is the major goal of this project,” said Jean-Patrick Marquet, Director for Municipal and Environmental Infrastructure at EBRD.
The Regional EU Cohesion Fund Co-financing Framework was launched in 2010 to support important investments in Romania’s water and wastewater infrastructure, helping local utilities to bring their services up to EU environmental standards. Under the framework, the EBRD provides financing to water utilities. It is estimated that the framework will mobilise additional investments of close to €1.5 billion in Romania’s water and wastewater infrastructure.
Since the beginning of its operations in Romania, the EBRD has committed over €5 billion to various sectors of the country’s economy.