The loan proceeds, 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's main objectives are (i) increasing 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.
ETI score: 60
- Project's Green quality, via: (i) annual potable water savings, (ii) increasing the share of the population connected to wastewater treatment and (iii) increasing the volume of wastewater treated before being discharged.; and
- Project's Resilient quality via: (i) reducing the Company's dependence on 100 per cent grant-based funding and (ii) strengthening its financial and operational performance and asset management practices.
WATER SUPPLY AND SEWAGE COMPANY OF THE CITY OF VRATSA
Vratsa Water Supply and Sanitation Company ("Vratsa WSSC" or the ""Company"), a 51 per cent state / 49 per cent municipal-owned utility company, is the sole provider of water supply and sanitation ("WSS") services in Vratsa Region, on the basis of a 15-year Public Service Contract ("PSC") with the Regional Water Supply and Sanitation Association. The total population serviced by the Company is c. 172,000 people.
EBRD Finance Summary
A senior investment loan of up to EUR 2.7 million, split into two equal tranches - Tranche 1 of up to EUR 1.35 million funded with EBRD's ordinary capital resources ("EBRD Tranche"), and Tranche 2 of up to EUR 1.35 million funded with European Structural and Investment Funds ("ESIF") resources via the EBRD-EU Special Fund administered by the Bank ("ESIF Tranche"). 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
The total value of the investments is EUR 21.3 million excluding VAT, to be majority-financed with investment grants from the OPE, complemented by Company's own funds and EBRD's loan.
The Bank offers financing not available in the market, e.g. tenor above the market average and innovative financing structure on commercial terms, which is necessary to structure the project. EBRD's involvement and expertise will mobilise the necessary resources for the proper implementation of the project.
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 and Grant Financing
- Pre-signing TC - EUR 90,000 to cover project preparation was funded from EBRD's Infrastructure Project Preparation Facility ("IPPF").
- Post-signing TC - estimated at EUR 180,000 for development of Financial and Operational Performance Improvement Plan ("FOPIP") expected to be financed by a combination of EBRD's SSF resources and funds form the OPE.
Company Contact Information
Angel Prestoyski, General Manager
2 Al. Stambolilyski str., 3000 Vratsa, Bulgaria
PSD last updated
06 Jan 2021
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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).
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