The EU Cohesion Fund and the EBRD are joining forces to modernise and upgrade the water and wastewater services in the county of Botosani, located in the north-east of Romania.
The EBRD is providing a €7.4 million loan, alongside up to €80.9 million of EU Cohesion Funds and additional funding from Romanian local and national budgets, to finance the €102.5 million regional water investment programme of the water company, SV Nova Apaserv SA.
The investment will assist the company in extending and rehabilitating the water and wastewater infrastructure in Botosani, and this investment is expected to significantly reduce water losses, optimise operating costs, and expand water supply and wastewater collection and treatment services in the county, in line with relevant EU directives.
Upon implementation, a connection rate of 90 per cent for both water and wastewater for the population in the project area, together with a minimum 95 per cent water and wastewater quality compliance in the project area, will be achieved.
Jean-Patrick Marquet, EBRD Director for Municipal and Environmental Infrastructure, said: “The EBRD is committed to improving urban infrastructure, particularly water services, in Romania and helping the country to absorb EU cohesion funds. This loan will enable the company to modernise water and wastewater infrastructure in Botosani and surrounding water supply zones and agglomerations.”
Gabriel Cirlan, General Manager of Nova Apaserv Water Company, added: “The project is of major importance for the county of Botosani and we are delighted to work with the EBRD in order to improve water and wastewater services. The implementation of the project supports the development of Nova Apaserv as a regional water operator and represents an important step in ensuring provision of quality water and wastewater services in Botosani, adding to the successful long-standing partnership with the Bank which began in 1997 under the MUDP programme.”
The EBRD’s loan is being provided under the Bank’s Romania EU Cohesion Funds Water Co-Financing Framework, which was launched in 2010. SV Nova Apaserv SA is the twentieth company in Romania to benefit from the framework, which aims to assist in the modernisation of water and wastewater services. To date, the Bank has invested some €272 million under the framework, and has mobilised more than €1.86 billion of EU funding in Romania’s water and wastewater facilities.
Since the start of its operations in the country the EBRD has invested approximately €6.4 billion across over 343 projects in Romania and has further mobilised over €14 billion for these ventures from other sources of financing.