Brno Waste Water Treatment Plant Upgrading

Location:

Czech Republic

Project number:

4844

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Approval date:

16 Nov 1999

Status:

Complete

PSD disclosed:

16 Sep 1999

Project Description

The water utility of the city of Brno in the Czech Republic is seeking financing for the extension and upgrading of the Brno-Modrice Waste-water Treatment Plant and part of the city’s sewerage network. EBRD financing is envisaged to consist of a direct loan to the water utility without a sovereign or full municipal guarantee. The initial project was board approved on 16 November 1999. A loan increase of €10 million was board approved on a no-objection basis in April 2001.

The project aims to:

  • support private sector involvement through careful risk allocation, involvement of private sector management expertise and turnkey contracting;
  • provide for cost recovery through user charges;
  • provide, through the tariff formula, incentives for efficiency gains and for sharing them between BVK and the consumers;
  • meet EU environmental standards for waste-water collection and treatment.

Transition Impact

This form of utility financing will have a strong demonstration effect and will transfer construction and project management risk to the private sector. It will also change BVK’s remuneration to a system that gives incentives to improve financial and operational efficiency.

The Client

Brnenske Vodarny a Kanalizace (BVK) is a partly privatised municipal utility company holding a lease and operating contract to operate and maintain the water and sewerage system of the city of Brno. The system serves a population of approximately 400,000. BVK is owned by the city of Brno (51 per cent), Suez Lyonnaise des Eaux (39 per cent) and private investors (10 per cent).

EBRD Finance

External financing of the project is envisaged to consist of an EBRD loan of € 47.5 million, possibly in CZK, and grant co-financing from EU Phare’s Large Scale Infrastructure Facility of € 14.2 million.

Project Cost

Total project costs are estimated at € 84.8 million.

Environmental Impact

The project was screened B1, requiring an environmental impact assessment, which was undertaken by independent consultants. The investigations revealed that the main environmental issues associated with the upgrading and extension of the waste-water treatment plant have been identified and appropriate mitigation measures have been included.

The project has mainly environmentally related objectives and once fully operational will make a significant contribution to the further reduction of the pollution of the River Svratka and a man-made lake. The plant will be in compliance with relevant Czech and EU standards. In addition, the operation of the plant will not shift pollution to other environmental media (from water to soil/land). The intention of the project is also to reduce land impact and to recover energy by utilising biogas created during sludge.

Technical Cooperation

Approximately € 1.5 million.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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