The EBRD is continuing to support the modernisation of water infrastructure in Romania with a €7.6 million financing that will bring improved water services to over 100,000 residents in Covasna county, in the central part of the country.
The EBRD loan is extended to S.C. Gospodarie Comunala S.A. water utility company, and is part of the EBRD’s Regional EU Cohesion Fund Co-financing Framework (R2CF). It will be used to co-finance the company’s €86.5 million EU Cohesion Fund investment programme for upgrading its regional water and wastewater facilities.
The project will enable the company to modernise its water and wastewater network in four towns: Sfantu Gheorghe, Targu Secuiesc, Covasna and Intorsura Buzaului.
The investment will help Gospodarie Comunala S.A. improve the quality of its water supply, wastewater collection and treatment services in line with relevant EU directives, and will allow the company to considerably reduce water losses and operating costs.
The EBRD loan is supported by over €763,500 in grant financing for technical assistance provided by the Spanish Trust funds and the Bank’s Shareholder Special Fund.
Previously the EBRD supported similar investments in Bistrita-Nasaud, Braila, Brasov, Buzau, Constanta, Dambovita, Iasi, Sibiu and Timis counties.
R2CF was launched in 2010 as a €200 million EBRD framework to provide additional financing to Romanian municipalities by investing in water and wastewater infrastructure. To date the framework has mobilised more than €940 million of EU funding in Romania’s water and wastewater facilities.
Since the beginning of its operations in Romania, the EBRD has invested over €5.7 billion in the country’s economy.