Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

22 Jul 1997



PSD disclosed:

05 Mar 1997

Project Description

Loan financing of water sector investments in ten medium-sized cities, together with support to the institutionalisation of municipal credit and programmes for municipal utility corporatisation.

Project objectives: (i) Finance priority water-supply and waste-water investments to improve service provision; (ii) enable the institutionalisation of municipal credit; (iii) enhance the performance of the water companies and municipalities.

Transition Impact

The project will introduce credit to the financing of municipal investments, and by institutionalising municipal credit will impact the whole structure of the municipal finance system. The municipal infrastructure investments will also support harmonisation with EU environmental standards, and provide better services for consumers, industry and commerce.

The Client

The Government of Romania will on-lend the proceeds of the loan to local governments and water companies in ten cities (Arad, Bacau, Bistrita, Botosani, Braila, Cluj, Constanta, Focsani, Oradea and Tirgoviste). During implementation, steps will be taken to institutionalise municipal credit provision to enable wider access to credit for municipalities across Romania.

EBRD Finance

A sovereign loan of US$ 75 million (ECU 65 million). Co-financing is anticipated with EC Phare, as well as with central and local governments and the water companies.

Project Cost

US$ 188 million (ECU 163 million).

Environmental Impact

This project will have environmental benefits, particularly with respect to the health of the population. It will lead to better living conditions and reduce health hazards from water contamination by improving waste-water collection and treatment. Environmental issues associated with the investments have been identified in an environmental analysis and addressed with adequate mitigation measures.

Technical Cooperation

Technical cooperation totalling ECU 4 million has been committed during project preparation, and a further ECU 5 million is anticipated during implementation.


Business opportunities

For business opportunities or procurement, contact the client company.

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General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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