C2CF Osijek Wastewater sub-project

Location:

Croatia

Project number:

46024

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

A

PSD disclosed:

28 Mar 2014

Translated version of this PSD: Croatian

Project Description

The Bank is considering the first sub- loan under the C2CF Framework in the amount of up to EUR 23 million to Vodovod Osijek d.o.o., a water and wastewater company to co-finance with EU Cohesion funds the upgrade and extension of the water supply and wastewater in Osjek to meet EU directives and domestic regulations.

Transition Impact

In line with the standard set of reforms which are goals for the entire Framework the Osijek sub-project will support the following core transition items:

  • Regionalisation of water and wastewater services with the objective to extend coverage to smaller outlying communities and improve operational efficiencies.
  • Tariff equalisation and tariff reform with the objective to eliminate cross-subsidies among user groups and move towards fully cost reflective tariffs.
  • Benchmarking with the objective to raise quality and efficiency in line with European indicators.
  • Financial and Operational Performance Improvement Programme activities with the objective of raising managerial performance.

The Client

Vodovod Osijek d.o.o., a water and wastewater company, majority owned by the city of Osijek.

EBRD Finance

Senior loan of up to EUR 23 million.

Project Cost

Up to EUR 91.01 million.

Environmental Impact

Categorised A. The project will provide substantial environmental and health benefits for the communities living in the cities of Osijek, Čepin, Brijesce and Tenja. Upon completion, the project will bring the water and wastewater systems of those cities into compliance with EU Water & Wastewater Directives. Moreover, environmental opportunities will also include reduction of Green House Gase emissions through utilisation of methane as the source of energy which will be generated from the (residual) sludge of the Osijek WWTP.

The construction of the new central WWTP with a capacity of 170,000 PE will be partly located within a NATURA 2000 site, and together with the other project components related to wastewater collection, it could result in potentially significant and adverse environmental and social impacts. These impacts could affect a number of cultural heritage and historical sites in the city of Osijek; the adjacent NATURA 2000 site and also the surrounding communities and local residents. Therefore, the project requires an Environmental and Social Impact Assessment (ESIA) and associated stakeholder engagement process. An independent consultant will be retained to undertake a review of the locally approved EIA, the conducted public consultation processes; EU approval and the local permits for constructing the Osijek central WWTP on the NATURA 2000 site, prepare a GAP analysis for full compliance with EU NATURA 2000 regulations and Bank’s Performance Requirements.

Based on the results of the review, and in line with EBRD ESIA requirements this will be disclosed for public review and comment for 120 days. An ESAP will be developed and any other plans as deemed to be relevant.

Technical Cooperation

Technical co-operation (“TC”) is centralised for the entire Framework and will be provided to the benefit of each sub-project basis, as described below.

Pre-signing

  • Environmental and Social Due Diligence: (EUR 35,000 for environmental and social due diligence for Osijek sub-project to ensure that the Bank’s Environmental and Social Policy is met).
  • Energy Audit: (EUR 12,000 to assess Best Available Technology (“BAT”) in the energy recovery areas for wastewater, water efficiency, and biogas opportunities).

Post-signing

  • Support in the Regionalisation Process and FOPIP (EUR 2.5m for entire Framework, procured in two phases - initially for EUR 1m and then EUR 1.5m ): A framework TC to provide assistance to the ROCs in two major areas:

    (a) assistance in the regionalisation process including concrete merger plans, covering all legal, financial and operational aspects, for the consolidation of the ROCs with the water and wastewater companies of neighbouring municipalities and

    (b) re-organisation of their financial and operational activities to ensure they are more efficient, including business planning, PSC preparation, advice on tariff reform and collection improvements.
  • Performance Benchmarking (EUR 500,000 for entire Framework): assistance to the ROCs in participating in a country-wide exercise of benchmarking of key operational and managerial indicators.
  • Procurement Benchmarking and Certification (EUR 225,000 for the entire Framework): assistance to the ROCs that seek to obtain support to achieve best-practice level procurement certification, using an industry recognised assessment body.
 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.