Loan of up to EUR 14.4 million to Aquatim, the regional water operator in Timis County, Romania. The proceeds of the loan will be used to co-finance, alongside EU Cohesion Funds, the extension and modernisation of the company's water and wastewater infrastructure and services. The project is part of the Bank's Sustainable Water Infrastructure Facility (SWIFT) in Romania.
The project will enable Aquatim: (i) to achieve compliance with the relevant EU standards in the project area, and (ii) to enhance its long term asset management plan and integrate climate change considerations.
ETI score: 60
ETI score: 62
The project's transition impact is line with the SWIFT Framework and targets "Green" and "Resilient" qualities through:
- Development of a long term asset management approach.
- Support for environmental improvements and continued regionalisation of water and wastewater services in the County of Timis.
WATER COMPANY OF THE CITY OF TIMISOARA
Aquatim is the water utility company operating in Timis County in Romania (population of ca.757 thousand inhabitants). Aquatim is a joint stock company owned by Timisoara municipality with 99.12 per cent, and by Timis County and other municipalities in the region.
EBRD Finance Summary
Total Project Cost
The Bank is additional because of its:
- Financing structure: The Bank will provide necessary long-term financing structure that is not widely available in the local market.
- Standard-setting: helping projects and clients achieve higher standard: The EBRD will help the company achieve higher standards and increase compliance with EU regulations.
- Risk mitigation: EBRD's long-term partnership provides comfort to Aquatim to take on more risk, enabling outcomes such as innovation or expansion into new areas of service
Environmental and Social Summary
Categorised B (2019 ESP). The Environmental and Social Due Diligence (the "ESDD") for the Project has been 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 AQUATIM and an assessment of the Project's potential environmental and social ("E&S") impacts.
AQUATIM has an established environmental policy and environmental management system in accordance with ISO 14001/2015 as part of its Integrated Quality and Environment Management System (IMS). There is a Quality and Environment Program in place, which includes environmental objectives and targets, and environmental performance is the subject of regular review by the management.
The Company's Human Resources systems are in full compliance with the requirements of Performance Requirement ("PR") 2.
The environmental and social appraisal demonstrated that the environmental and social impacts of the proposed upgrading and expanding water supply and wastewater systems will be mainly of limited duration and extent and can be mitigated through standard methods and good construction practices. Permitting under the EIA Directive transposed into national legislation has been finalized for this investment. Project impacts on biodiversity, in particular construction works inside, or in the proximity of, Natura 2000 sites, have been assessed in the preliminary stages of the EIA permitting procedure. Measures for the protection of the Natura 2000 sites are included in the Environmental Agreement, the final stage of the permitting process. AQUATIM shall implement the management plans developed for those works potentially affecting Natural 2000 sites and ensure that biodiversity expertise is in place to supervise works in the immediate proximity of all Natura 2000 areas.
There will not be any involuntary resettlement of formal settlements, or expropriation, or any known use of currently occupied land. All land proposed for the LIOP investment project is public land. In some cases, temporary access to private land for rehabilitation and extension of the water and wastewater pipelines will be needed.
The consultants have drafted a Stakeholder Engagement Plan ("SEP") and Environmental and Social Action ("ESAP"), which will need to be agreed with the client prior to EBRD Board Approval. The ESAP, which among others includes: updating of E&S management system plans and procedures; development and implementation of construction E&S management plans; ensure biodiversity expertise is in place to supervise works in the immediate proximity of all Natura 2000 areas; assessment and monitoring of workers below 18; inclusion of policies and measures against GBVH; contractor management and monitoring; measures for any potential temporary use of land and possible economic displacements; development of chance find procedure; update and implementation of the Stakeholder Engagement Plan.
Technical Cooperation and Grant Financing
The project benefited from pre-signing due diligence assignments (technical, financial, and environmental impact), part of the SWIFT Framework. The amount of these assignments was EUR 102 thousands, financed by the EBRD's Special Shareholders' Fund through the Infrastructure Project Preparation Facility.
Company Contact Information
+40 256 201370 +40 256 294753
Str. Gheorghe Lazar, nr 11/A,Timisoara, cod 300081
PSD last updated
22 Nov 2022
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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 firstname.lastname@example.org. 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.
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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).
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 email@example.com to get guidance and more information on IPAM and how to submit a request.