SWIFT Constanta sub-project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

09 Jun 2022



PSD disclosed:

17 Apr 2018

Project Description

EUR 5 million loan extension to Raja SA combined with amendments to harmonise the Company's existing EUR 25 million loan under the SWIFT Framework. The new loan will be fully aligned with the original project and will: i) co-finance alongside EU Cohesion Funds the extension and modernisation of the company's water and wastewater infrastructure and services and ii) finance a loss reduction programme with private sector participation.

Project Objectives

The project aims are twofold: i) to enable RAJA and the counties in which it is active to bring their water and wastewater services in line with EU environmental standards by cofinancing the extension and rehabilitation of the company's water and wastewater network alongside the EU, and ii) assist RAJA in reducing its non-revenue water by involving the private sector under a performance-based contract.

Transition Impact

ETI score: 60

The project's transition impact is aligned to the original proposal and it targets "Green" and "Resilient" qualities through: 

  • The development of a long term asset management approach and the involvement of the private sector in reducing the company's non-revenue water.
  • The support of environmental improvements and continued regionalisation of water and wastewater services in the counties of Constanta, Ialomita, Calarasi, Ilfov, Bacau, Brasov and Dambovita.

Enhanced Green quality is targeted through the assessment of energy solutions that will identify and prioritise energy efficiency investments for the company.

Client Information


RAJA is the largest regional water and wastewater company in Romania. It serves over three million domestic, industrial and public sector clients in seven counties: Constanta, Ialomita, Calarasi, Ilfov, Dambovita, Brasov, Bacau.

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 585,484,743.00


The Bank is additional because of its:

  • Financing structure: The Bank will provide necessary long-term financing that is not readily available from commercial banks.
  • Standard-setting: helping projects and clients achieve higher standard: The EBRD will help the company achieve higher standards by applying EBRD procurement and environmental standards.
  • Knowledge, innovation and capacity building: The Bank's long standing experience in the Romanian water sector and unique ability to structure a PBC for NRW with a private operator make the Bank highly additional in this transaction and best placed to pursue the reform agenda.

Environmental and Social Summary

Categorised B (Environmental and Social Policy ("ESP") 2014) under existing project remains valid. The environmental and social impacts of upgrading and expanding water supply and wastewater systems can be readily identified and managed. Independent consultants have carried out an appraisal of the project and assessed RAJA's management systems. The consultants have drafted a Stakeholder Engagement Plan ("SEP") and Environmental and Social Action ("ESAP").

This project will build on the first sub-project under the SWIFT Framework to improve water and wastewater service in towns and villages in Romania. The existing project will add 38 thousand people to the water supply network and connect 105 thousand people to the sewage and wastewater treatment systems. Upgrades to existing infrastructure will reduce leakage by 16 million m3 per year. This will bring RAJA into compliance with the service provision obligations of the EU directive by 2021.

RAJA is a public utility company operating in Constanta and neighbouring counties in south-eastern Romania. It currently supplies potable water for 595 thousand people and wastewater treatment services for 450 thousand people. It operates an integrated management system and is certified to ISO14001, OHSAS18001, ISO22000, ISO9001 and SA8000.

RAJA's Human Resources systems are in line with the requirements of PR2. The environmental and social impacts of the project are mainly associated with the construction period. The ESAP includes provisions for Environment, Health and Safety ("EHS") management of contractors and for monitoring and reporting by the client. Some of the pipe replacement or installation works will take place in Natura 2000 sites. Appropriate assessments have been carried out and approved by the authorities. Impacts in these areas are expected to be temporary and the project will have longer term benefits as the project will reduce leakage and effluent loading. The ESAP requires contractors to implement biodiversity management plans for these locations.No permanent land acquisition or resettlement is required for this project. Some temporary access to private land will be required and land owner will be informed and compensated as necessary. Public consultation was carried out for the local Environmental Impact Assessment ("EIA") process. NGOs raised questions related to effluent discharges and protected areas and these comments have been satisfactorily addressed. A SEP has been agreed for project implementation that includes a public grievance mechanism. The Environmental and Social Department ("ESD") will monitor the project and implementation of the SEP and ESAP through annual reports provided by the client. So far, environmental and social reporting for the project has been comprehensive and implementation of the ESAP has been good.

For the loan restructuring the existing requirements suffice hence, no additional ESAP items are required. The client is required to continue ensuring that the project complies with the PRs. The Bank will continue monitoring implementation of the ESAP through annual reports from the Client and site visits if deemed necessary.

Technical Cooperation and Grant Financing

The loan extension will benefit of Technical Cooperation ("TCs") as follows: 

  • Financial and technical due diligence update to be performed under the SWIFT Framework TC and financed by the EBRD Shareholder Special Fund ("SSF") through the Infrastructure Project Preparation Facility ("IPPF").
  • Support under the Energy Solutions for the Water Sector TC initiative, available to the Bank to identify and prioritised energy efficiency measures in the company.

Company Contact Information

Stelian Budes
+40 754 073 217

PSD last updated

08 Feb 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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