C2CF - Zagreb County Water Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

12 Dec 2018



PSD disclosed:

28 Mar 2018

Translated version of this PSD: Croatian

Project Description

The provision of up to EUR 7 million financing to Vodoopskrba i odvodnja Zagrebacke zupanije d.o.o., a water utility providing water-supply, wastewater collection and treatment services in the Zagreb County (the "Company"), to co-finance with the EU Cohesion funds, capital investments in water-supply infrastructure under the project Regional Water-supply System of Zagreb County-Zagreb East.

Project Objectives

The loan proceeds will be used to co-finance alongside the EU Cohesion funds capital investments into development of water-supply infrastructure consisting of upgrade and extension of existing water-supply pipeline, construction of 4 main water-supply pipelines and development of new main pumping stations.

Transition Impact


The Project will support the following core transition items:

  • Regionalization of the water and wastewater services, with the objective to increase coverage to smaller outlying communities and improve operational efficiencies.
  • Tariff equalization and tariff reform with the objective to eliminate cross-subsidies amongst user groups and move toward fully cost reflective tariffs.
  • Benchmarking with the objective to raise both quality and efficiency in line with European-wide indicators.
  • Financial and Operational Performance Improvement Programme ("FOPIP") activities with the objective of raising managerial performance.

In addition, the Project will support the Bank's Green Economy Agenda by investing into infrastructure that results with more sustainable and efficient water use and wastewater management, improvement of water-supply efficiency and/or improvement of drinkable water quality.

Client Information


Vodoopskrba i odvodnja Zagrebacke zupanije d.o.o. a universal municipal company, owned by several cities and municipalities in the Zagreb County.

EBRD Finance Summary

EUR 7,000,000.00

Total Project Cost

EUR 88,400,000.00

Environmental and Social Summary

Categorised B (2014 ESP). Leak reduction measures and the expansion of the water supply system will have environmental and social benefits, including reduced stress on water sources and fewer risks to public health. Potential negative impacts will be mainly associated with construction activities and any permanent or temporary land use. Due diligence will start with a gap analysis of the environmental report being prepared for the EU Fund application and then an additional appraisal will be carried out as necessary to address any identified gaps. An ESAP, Non-Technical Summary and Stakeholder Engagement Plan will be also developed and agreed with the client.

The Company will deliver the Environmental Impact Study prepared for the application for EU funds.

Technical Cooperation

Technical co-operation ("TC") will be provided to the benefit of Project as described below:


  • Environmental and Social Due Diligence (€200,000 for environmental and social due diligence for individual sub-projects to ensure that the Bank's Environmental and Social Policy is met).


  • Support in the post-Regionalisation Process and FOPIP TC to provide assistance to the Company in (a) the post-regionalisation process including post-merger activities, covering legal, financial and operational aspects of the merger, and (b) re-organisation of the Company's financial and operational activities, PSA preparation, and advice on tariff reform and collection improvements. The estimated cost of the assignment is up to EUR 250,000.
  • Performance Benchmarking TC to provide assistance to the Company in participating in a country-wide exercise of benchmarking of key operational and managerial indicators. The estimated cost of the assignment is up to EUR 50,000.

Company Contact Information

Tomislav Masten
00385 1 3492 100
00385 1 3492 104
Postal Address: Koledovicina ulica 1; 10000 Zagreb


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: