The EBRD is providing a €10 million loan that will help provide access to safe water supplies and sanitation services to more than 200,000 people in the county of Buzau in south-eastern Romania.
The credit to SC Compania de Apa SA Buzau (ApaBuzau), continues the EBRD’s support for Romanian municipalities in their drive to improve the quality of drinking water. The EBRD funds will be used to part-finance the construction and rehabilitation of wastewater collection and treatment facilities, in five towns in Buzau.
The new €10 million EBRD loan is part of the €200 million Regional EU Cohesion Fund Water Co-Financing Framework (R2CF) set up by the Bank to help Romanian municipalities benefit from the financing available from EU Cohesion Funds.
“With this important investment, the EBRD is continuing to play a leading role in providing finance for the restructuring of Romania’s water sector by offering its support to Romanian municipalities. The company will be able to build two new water treatment plants, three new wastewater treatment plants, and modernise the existing water and wastewater networks and plants. The new facilities will bring the company’s operations in line with EU environmental standards and ensure pure water supplies and quality sanitation services to its customers,” said Jean-Patrick Marquet, EBRD’s Director for Municipal and Environmental Infrastructure.
ApaBuzau provides water and wastewater services to the city of Buzau and eight towns and villages in the county of Buzau with a total population of about 500,000. Since 2009 the company has developed into a successful commercial company and become one of the leading regional companies in south-east Romania.
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.