C2CF Porec water and wastewater sub-project

Location:

Croatia

Project number:

45770

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

11 Nov 2015

Status:

Repaying

PSD disclosed:

06 Aug 2014

Translated version of this PSD: Croatian

Project Description

The Bank is considering the first sub-project loan under the C2CF Framework of up to €20 million to Usluga Poreč d.o.o. universal municipal company (the “Company”) to co-finance with EU Cohesion funds investments in the reconstruction and construction of new wastewater treatment facilities in the Poreč area covering 4 geographical sections: Lanterna, Poreč North Poreč South and Vrsar.

Transition Impact

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

  • Regionalisation of the water and wastewater services, with the objective to increase coverage to smaller outlying communities and improve operational efficiencies.
  • Tariff equalisation and tariff reform with the objective to eliminate cross-subsidies amongst user groups and move toward fully cost reflective tariffs.
  • Benchmarking with the objective to raise both quality and efficiency in line with European-wide indicators.
  • Financial and Operational Performance Improvement Programme (“FOPIP”) activities with the objective of raising managerial performance. 

The Client

Usluga  Poreč d.o.o. a universal municipal company, majority owned by the City of Porec.

EBRD Finance

Senior loan of up to €20 million.

Project Cost

Up to €84.11 million.

Environmental Impact

Categorised B. The project will provide substantial environmental and health benefits for the city of Poreč. Upon completion, the project will allow the wastewater system of Poreč to meet compliance with EU Wastewater Directive 91/271/EC on urban wastewater. Future adverse environmental and social impacts in extending and upgrading wastewater collection networks are likely to be site-specific and can be readily identified and subsequently addressed through adequate mitigation measures. However, should the priority investments involve any new construction in sensitive locations that could have significant adverse future environmental or social impacts, which cannot be readily identified and addressed, the project category may need to be changed to A.

The Environmental and Social Due Diligence (ESDD) will be carried out by an independent consultant and will focus on:

  • review of EU water and wastewater background studies prepared for the EU Cohesion/Structural Fund applications; 
  • assessing suitability of the proposed locations for the new wastewater treatment plants in terms of sensitive receptors, protected areas, including proposed Natura 2000 sites, cultural heritage sites, and land acquisition and resettlement issues; 
  • design capacity of the new wastewater treatment plants and quality parameters of treated wastewater to be discharged; and 
  • potential permanent or temporary disturbances for people during the construction and operation phases of the project.

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 (€200,000 for environmental and social due diligence for individual sub-projects to ensure that the Bank’s Environmental and Social Policy is met).
  • Energy Audit: (€60,000 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 (€2.5m for entire Framework): 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 (€500,000 for entire Framework): to provide assistance to the ROCs in participating in a country-wide exercise of benchmarking of key operational and managerial indicators.
  • Procurement Benchmarking and Certification (€150,000 for entire Framework): assistance to 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

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