ESIF: Vratsa Water Subproject



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

05 May 2020



PSD disclosed:

15 Aug 2019

Project Description

Provision of a long-term corporate loan of up to EUR 3 million to Vratsa Water Supply and Sanitation Company ("Vratsa WSSC" or the "Company), 51% state / 49% municipal-owned entity. The company is the sole provider of centralised water supply and sanitation ("WSS") services in Vratsa Region.

The proceeds of the loan, blended with investment grants from Operational Programme Environment 2014 - 2020 ("OPE"), will finance investments targeting rehabilitation of over 54 km of water distribution pipes and 26 km of sewerage network, acquisition of new equipment for a sewage pumping station and construction of 15 new water metering shafts, 5 pressure-reducing valves chambers and two storage sites for sludge, etc. In addition, complementary performance-enhancing measures are foreseen (e.g. integration of GIS and enhancing of SCADA systems). The project will be financed with EBRD's own capital and funds from the European Structural and Investment Funds ("ESIF") and the national budget of the Republic of Bulgaria (jointly referred to as "ESIF contributions").

Project Objectives

The project's main objectives are (i) reaching compliance with the EU directives concerning potable water and waste water treatment in large agglomerations (above 10,000 population equivalent) and (ii) enhancing operational efficiency.

Transition Impact

The Transition Impact stems from the strong environmental benefits of the project (improving efficiency, reducing water losses and connecting more people to centralised sewage and waste water treatment in compliance with EU Directives), the reduced dependence on full grant-based financing of investments as well as the strengthening of the Company's financial and operational performance through technical cooperation ("TC").

Client Information


Vratsa WSSC is providing centralised WSS services to 10 municipalities, comprising 8 towns and 115 villages, on the basis of a 15-year Public Service Contract ("PSC") with the Regional Water Supply and Sanitation Association. The PSC gives the Company the right to operate the publicly-owned infrastructure, provide WSS services and collect revenues. In return, the Company has committed to invest a total of EUR 3.8 million in the WSS network over a course of 15 years. The total population serviced by the Company is c. 172,000 people.

EBRD Finance Summary

EUR 1,500,000.00

Total loan amounts to EUR 3 million, of which up to EUR 1.5 million, funded by EBRD and up to EUR 1.5 million, funded with ESIF contributions. The ESIF financial resources are being managed by EBRD pursuant to the Operational Agreement between the Bank and the Fund Manager of Financial Instruments in Bulgaria signed in October 2018.

Total Project Cost

EUR 23,922,469.00
The total value of the investments is EUR 22.9 million excluding VAT, to be majority-financed with investment grants from the OPE, complemented by Company's own funds and EBRD's loan.

Environmental and Social Summary

The project is categorised B in accordance with the 2014 Environmental and Social Policy. The key environmental and social risks and impacts are mainly construction related - particularly health and safety of workers and public during excavation activities; temporary restrictions of access; increased noise, dust and vibration levels; and contractor management. Permanent resettlement is not anticipated. The environmental and social due diligence will be undertaken by TC funded consultants and the identified risks will be mitigated via an Environmental and Social Action Plan for the project. This section will be revised with the results of the environmental and social due diligence.

Technical Cooperation

• Pre-signing TC covers the following activities: (1) technical and operational review of the Projects; (2) analysis of the key contractual arrangements; (3) financial modelling and analysis; (4) environmental and social due diligence and gap analysis; (5) procurement review and (6) confirming Projects' compliance with EBRD's Green Economy Transition framework. The TC is funded by the EBRD's Sustainable Infrastructure Advisory.

• The Company will benefit from a TC for financial and operational improvement to support the Company in strengthening its operations and financial performance and long-term debt service capacity. The budget will be potentially financed by funds form the Operational Programme Environment 2014-2020.

Company Contact Information

Angel Prestoyski, General Manager


2 Al. Stambolilyski str., 3000 Vratsa, Bulgaria

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

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

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: