Croatia Cohesion Funds Co-Financing Water & WW

Location:

Croatia

Project number:

45769

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

08 Apr 2014

Status:

Board Approved

PSD disclosed:

17 Jan 2014

Sub-projects signed under this framework

Translated version of this PSD: Croatian

Project Description

The EBRD is considering the establishment of a Cohesion Funds Co-financing Water & Wastewater Framework (C2CF) and the approval of up to €200 million for the financing of up to 15 sub-projects in the water and wastewater sector in Croatia under this facility. The Framework will further mobilise up to €800 million of EU funds for water and wastewater investments in the country.

Transition Impact

The following will be required of all participating the Regional Operating Companies (ROCs) as part of the standard set of reforms that are envisaged as goals for all sub-projects under the Framework, which will form the basis of the transition impact:

  • 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, backed by an independent entity establishing an objective tariff methodology.
  • 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

The ROCs.

EBRD Finance

Up to €200 million.

Project Cost

Up to €1 billion.

Environmental Impact

The potential Environmental and Social (“E&S”) impacts of the planned investments in water and wastewater infrastructure are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. However, should identified sub-projects involve any new construction in sensitive locations that could have significant adverse future environmental or social impacts, which cannot be readily identified and addressed, then categorisation of each sub-project will reviewed on case-by-case basis. Sub-projects are expected to result in significant community health benefits as the aim is to bring the existing facilities and operations, including water, wastewater and sludge management/disposal into full compliance with EU Wastewater Directive 91/271/EC on urban wastewater.

The E&S Due Diligence 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.

Based on the recommendations of the due diligence and Environmental and Social Action Plan (“ESAP”) will be prepared for each sub-projects. The ESAPs will form an integral part of the legal agreements between the participating ROCs and EBRD. 

Technical Cooperation

Technical co-operation (“TC”) is centralised for the entire Framework and will be provided in support of each sub-project, 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.

Company Contact

The ROCs – refer to specific sub-project.

 

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.