ESIF: Vratsa Water Subproject

Location:

Bulgaria

Project number:

50955

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

05 May 2020

Status:

Signed

PSD disclosed:

15 Aug 2019

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

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).

Project Objectives

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.

Transition Impact

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.

Client Information

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

EUR 1,350,000.00

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

EUR 21,312,052.00

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.

Additionality

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
upravitel@vik-vratsa.com
0035992661223
www.vik-vratsa.eu
2 Al. Stambolilyski str., 3000 Vratsa, Bulgaria

Implementation summary


PSD last updated

06 Jan 2021

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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