The purpose of the project is to provide co-financing for an EU ISPA project along with the European Investment Bank to fund the construction of the first stage of a wastewater treatment plant for the City of Bucharest.
The project will consist of completing the first line and building a sludge treatment facility and will be supported by ISPA capital grants. ISPA will also provide technical assistance for the development of tender documents, procurement and site supervision as well as institutional strengthening. The plant will be operated by Apa Nova Bucharest under its existing concession contract.
Transition impacts include:
The wastewater treatment tariff will be designed to both operating and capital costs on a transparent basis.
Private sector participation
The Glina WWTP will entail private sector participation as it will be operated by Apa Nova, which is the concessionaire responsible for providing water and wastewater services for the City of Bucharest.
Framework for markets
The project will improve environmental protection by enforcing the polluters pay principle. It will do this by imposing real increases in wastewater treatment tariffs.
Project management demonstration effect
The WWTP will be built through a single turn key design build contract
Municipality of Bucharest ( City) will be the borrower for the construction of a wastewater treatment plant (WWTP) at Glina. Pursuant to the concession contract executed between the City and Apa Nova Bucharest, the plant will be operated by ANB in accordance with service levels to be negotiated between the City and ANB.
Up to EUR 10 million annuity type loan to the Municipality of Bucharest to finance the Glina Wastewater Treatment Plant to complement grant financing from EU-ISPA. In addition to EBRD, the European Investment Bank (EIB) will provide a EUR 25 million sovereign loan, making this the first joint EBRD-EIB financing for an ISPA project.
Total – EUR 104 million, out of which:
- EBRD - EUR 10 million
- EIB - EUR 25 million
- EU ISPA Grant - EUR 69 million
This project presents significant environmental opportunities regarding improving the quality of effluent, thus reducing pollution of Danube and Black Sea. The environmental due diligence will need to be carried for this project. It will assess the ability of the selected project to bring the wastewater facilities into compliance with applicable Romanian and EU environmental standards. It will also assess possible environmental liabilities associated with the existing wastewater treatment facilities.
This project is a high priority environmental investment for Bucharest and is important for Romania in terms of pre and post accession grant utilisation.
Technical co-operation funds for project management will be provided from EU ISPA.
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