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Loan Dambovita water sub-operation Romania



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Approval date:

22 Nov 2022



PSD disclosed:

13 Sep 2022

Project Description

Loan of up to EUR 18 million to Compania de Apa Targoviste-Dambovita ("CATD"), the regional water operator in Dambovita County and neighbouring localities. The proceeds of the loan will be used to co-finance, alongside EU Cohesion Funds, an extension and modernisation of the company's water and wastewater infrastructure and services. The EU investment grants are being made available under the EU Large Infrastructure Operational Programme approved in 2021.

Project Objectives

The project will enable Compania de Apa Targoviste-Dambovita ("CATD") to 1) increase compliance with Directive no.98/83/EC on drinking water quality while increasing the service coverage in communities with more than 50 inhabitants; 2) increase compliance with Directive no.91/271/EEC on wastewater collection and treatment by providing wastewater collection and compliant treatment of wastewater in agglomerations with over 2,000 p.e..

Transition Impact

ETI score: 60

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.
  • The support of environmental improvements and continued regionalisation of water and wastewater services in the County of Dambovita.

Client Information


Compania de Apa Targoviste-Dambovita ("CATD" or the "Company") is the water utility company operating in Dambovita County in Romania (population of ca. 510,000 inhabitants). CATD is a joint stock company owned 67.7 per cent by Targoviste municipality, 8.4 per cent by Dambovita County and 23.9 per cent by other municipalities in Dambovita County.

EBRD Finance Summary

EUR 18,000,000.00

Total Project Cost

EUR 382,000,000.00


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 and increase compliance with EU regulations.
  • Policy, sector, Institutional or regulatory change: EBRD's involvement in a project is considered additional as it will enhance the Copmany's practices in the water sector.

Environmental and Social Summary

Categorised B (2019 ESP). The Environmental and Social Due Diligence (the "ESDD") for the Project was carried out as part of the Project Feasibility Study by independent consultants and included a review of Environmental and Social (E&S) management capacity and performance of S.C. Compania de Apa Targoviste Dambovita S.A. (CATD) and an assessment of the project's potential E&S impacts.

CATD operates an Integrated Management System (IMS) is certified to ISO 14001 for environmental management and ISO 45001 for occupational health and safety (OH&S) management. CATD is in full compliance with EBRD's Performance Requirement 2 related to labour and working conditions.

The total population benefiting from improved water supply and wastewater services, enabled by the project amounts to 287,060 and 185,257 inhabitants respectively. There will be increased connection rates to water supply networks from the current level of 76.8 per cent to 80.6 per cent across the network or 78.9 per cent to 94.4 per cent in the project area. There will be increased connections to wastewater networks from the current level of 46.1 per cent to 62.8 per cent across the network or 48.1 per cent to 65.2 per cent in the project area.

In addition, upgrades to infrastructure will reduce water losses (known as Non-revenue water or NRW) from 18.2 per cent to 13.8 per cent in both CATD's overall service area and in the project area.

The connection increases and infrastructure upgrades enabled by the project will bring the company into compliance with the service provision obligations of the EU Directive no. 98/83/EC on the quality of drinking water, EU Directive no. 91/271/EEC on wastewater collection and treatment, EU Directive no. 91/271/EEC concerning urban wastewater treatment and EU Directive no. 86/278/EEC on sewage sludge by 2025. Due diligence has confirmed the sustainability of the water resources.

The environmental and social appraisal demonstrated that the environmental impacts of the project are temporary and short-term impacts relating to construction and they can be mitigated through standard methods, procedures of good housekeeping and good engineering practice.

The project was subject to a single EIA Screening procedure. The competent authority issued the screening decision that a full EIA and a full-scale appropriate assessment is required. The full scale procedure was completed and final permits issued. The competent authority issued the screening decision that neither a full EIA nor full-scale appropriate assessment is required due to the project being unlikely to have a significant impact. A limited part of the project will be conducted in close proximity to Natura 2000 sites (ROSPA0161, ROSCI0106, ROSCI0344, ROSPA0124, ROSCI0013, ROSCI0014, RONPA0883, ROSCI0224). The impact on biodiversity, in particular the construction works in the proximity of Natura 2000 sites has been thoroughly assessed in the various stages of the EIA/AA permitting procedure. The temporary impact related to noise that may disturb the fauna is reduced through mitigation measures, and the overall impact is assessed as not significant. It is assessed that the project is in full compliance with EU Directive no. 79/409/ EEC on the protection of wild birds and EU Directive no. 92/43/EEC on the conservation of natural habitats and of wild fauna and flora; and overall, the project is assessed to have a positive impact on the Natura 2000 sites through the reduction of unplanned wastewater discharges into aquatic ecosystems.

The ESDD has concluded that the environmental impacts of the project have been assessed in full compliance with the new EU EIA Directive. All environmental approvals (EAs) including the final screening decision have been obtained for the investment project based on the final design. There were no comments or complaints received to date from the public during the public comment period, public meetings or anytime during the procedure.

There will not be any involuntary resettlement of formal settlements, or expropriation, or any known use of currently occupied land.

 The consultants have prepared a Stakeholder Engagement Plan ("SEP") and Environmental and Social Action ("ESAP"), which will need to be agreed with the client prior to the EBRD's board approval. The Environmental and Social Action Plan (ESAP), which among others includes updating of E&S management system plans, policies and procedures; development and implementation of construction E&S management plans (including biodiversity management of Natura 2000 areas); contractor management and monitoring; proper management and disposal of asbestos containing materials; and implementation of the Stakeholder Engagement Plan.

 The Environmental and Social Department will monitor the project and implementation of the SEP and ESAP through annual reports provided by the client.

Technical Cooperation and Grant Financing

The project benefited from pre-signing due diligence assignments (technical, financial, environmental and operational) included under SWIFT Framework. The amount of these assignments was EUR 100,000 and has been financed by the Bank's Infrastructure Project Preparation Facility.

Company Contact Information
004 0245611774
Bd. I.C.Bratianu, nr.50,Targoviste, cod 130055

PSD last updated

13 Sep 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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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