RF- VISP: Raja Constanta



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Approval date:

23 Jun 2020



PSD disclosed:

08 Jun 2020

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A stand-by liquidity facility of up to EUR 5 million to help RAJA SA ("RAJA" or "Company"), the largest regional water and wastewater company in Romania, withstand the adverse impacts caused by the Covid-19 pandemic on its product demand and operations. The funds will be used for working capital needs, to alleviate receivables collection problems RAJA expects to encounter over the next year.

RAJA serves many tourist areas, including the two largest in the country: the seaside resorts in Constanta and the mountain resorts in Brasov. The company relies on groundwater for 93% of its water supply, thereby incurring large energy costs for extraction. Of all water supply in the system, 59% is non-revenue water (i.e. lost due to spillages along the distribution network, and not invoiced). Thus, the Company incurs large fixed costs, while part of the demand is tourism-dependent (45% of revenues come from non-residential consumers).

The Covid-19 crisis is set to affect tourism and other economic sectors that the company relies on. The EBRD facility is intended to help RAJA withstand this impact.

This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information.  Details of the Bank's response to Covid-19, and this deviation, can be found on our website.

Project Objectives

The objective of this project is to help RAJA mitigate the risks posed by the Covid-19 pandemic on its operations. It does so by providing a stand-by liquidity facility that the Company can use for working capital needs, to compensate for the reduced demand brought by the pandemic, while sustaining large fixed operating costs.

Transition Impact

ETI score: 60

The transition impact goal of this operation is to preserve the gains achieved under the two ongoing projects with RAJA.

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. The Company is owned 99.9% owned by the County of Constanta.

EBRD Finance Summary

EUR 5,000,000.00

Total Project Cost

EUR 5,000,000.00


Covid-19 crisis response: EBRD financing effectively bridges a liquidity gap due to adverse market conditions in the Covid-19 crisis.

Environmental and Social Summary

Categorised C (2019 ESP). The provision of short-term working capital is not associated with any new environmental or social risks or impacts. Due diligence for this transaction has comprised a review of the company's annual reports and progress with implementation of the environmental and social action plan (ESAP) for the Bank's first projects with RAJA Constanta. An update on progress with the ESAP for the Bank's second project with RAJA has been requested and will be reviewed by ESD prior to the signing of this loan.

The Company has established a Covid-19 crisis unit and developed plans to ensure continuity of service.  Employees have been given information and training and there are no plans to introduce temporary or permanent redundancies.

RAJA is a public utility company operating in Constanta and neighbouring counties in southeastern 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 and SA8000. Previous due diligence has confirmed that RAJA's HR systems are in line with the requirements of PR2. EBRD has financed projects to expand and upgrade water supply and wastewater treatment. Environmental and social reporting for these projects has been comprehensive and implementation of the first ESAP has been good.

This solidarity loan does not require additional monitoring or reporting. EBRD will continue to monitor RAJA's environmental and social performance via reporting for the previous transactions.

Company Contact Information

Stelian Budes
+40 754 073 217
+40 754 073 217
Strada Rascoalei 1907 5, Constanta 900178, Romania

Implementation summary

PSD last updated

15 Jun 2020

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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