ESIF: Rousse Water Subproject

Location:

Bulgaria

Project number:

50878

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

11 Dec 2019

Status:

Signed

PSD disclosed:

02 Apr 2019

Project Description

A loan of up to EUR 8.7 million to Rousse Water Supply and Sanitation Company, 51 per cent state / 49 per cent municipal-owned company, sole provider of water supply, waste water collection and treatment services in Rousse region.

The proceeds of the loan are used for co-financing priority investments in water supply and sanitation infrastructure, jointly with investment grants under Operational Programme Environment 2014-2020, or the EU Investment Project, as well as for funding a project for rehabilitation of a water supply main, or the Rehabilitation Project.  The EU Investment Project is financed with the EBRD's own capital recourse and funds from the European Structural and Investment Funds and the national budget of the Republic of Bulgaria (jointly referred to as ESIF contributions), while the Rehabilitation Project is fully funded by the Bank.

Project Objectives

The main objectives of both projects are: (a) reduction of non-revenue water and provision of constant water supply to all end users, hence fulfilling requirements of EU Directives 98/83/EC (Drinking Water Directive) and (b) connecting additional population to waste water services and treatment infrastructure, thus reaching compliance with EU Directive 91/271/EEC (EU Waste Water Treatment Directive).

Transition Impact

ETI score: 60

The Transition Impact stems from the strong environmental benefits of the projects (improving efficiency, reducing water losses and connecting more people to centralised sewage and waste water treatment in compliance with EU Directives), the reduced dependence on full grant-based financing of investments as well as the strengthening of the company's financial and operational performance through technical cooperation (TC).

Client Information

WATER AND SEWAGE COMPANY OF THE CITY OF ROUSSE

The company is the sole provider of water supply and sanitation services for roughly 250,000 inhabitants from 8 municipalities (Rousse, Slivo Pole, Ivanovo, Vetovo, Dve Mogili, Borovo, Byala and Tzenovo).

The company has signed a 15-year public service contract (PSC) with the Regional Water Supply and Sanitation Association, a non-profit organisation, representing the owners of the water supply and sanitation infrastructure, i.e. the state and the municipalities in the region. The PSC gives the company the exclusive right to provide services in the region and collect revenues from the end consumers.

EBRD Finance Summary

EUR 5,900,000.00

Total loan amounts to EUR 8.7 million, of which up to EUR 5.9 million, funded by the EBRD and up to EUR 2.8 million, funded with ESIF contributions (ESIF tranche). The ESIF financial resources are being managed by the EBRD pursuant to the Operational Agreement (OA) between the Bank and the Fund Manager of Financial Instruments in Bulgaria signed in October 2018.

Total Project Cost

EUR 57,720,000.00

The EU Investment Project will be majority-financed with EU investment grants and co-financed by the proceeds from the loan. The Rehabilitation Project will be funded entirely by the EBRD.

Environmental and Social Summary

The project is categorised B in accordance with the 2014 Environmental and Social Policy. The key environmental and social risks and impacts are mainly construction related - particularly health and safety of workers and public during excavation activities; temporary restrictions of access; increased noise, dust and vibration levels; and contractor management. Permanent resettlement is not anticipated. The environmental and social due diligence will be undertaken by TC funded consultants and the identified risks will be mitigated via an Environmental and Social Action Plan for the project. This section will be revised with the results of the environmental and social due diligence.

Technical Cooperation and Grant Financing

  • Pre-signing TC covers the following activities: (1) technical and operational review of the projects; (2) analysis of the key contractual arrangements; (3) financial modelling and analysis; (4) environmental and social due diligence and gap analysis; (5) procurement review and (6) confirming projects' compliance with EBRD's Green Economy Transition framework. The TC is funded by the EBRD's Sustainable Infrastructure Advisory.
  • The company benefits from a TC for financial and operational improvement, which supports the company in strengthening its operations and financial performance and long-term debt service capacity. The budget will be potentially financed by funds form the Operational Programme Environment 2014-2020.

Company Contact Information

Eng. Sava Savov, General Manager
upravitel@vik-ruse.com
0035982820201
www.vik-ruse.com
6 Dobrudzha str., 7000 Rousse, Bulgaria

PSD last updated

04 Feb 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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 emailmail 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. Requesters’ identities may be kept confidential, upon request.

 

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