The proposed project is expected to finance:
- construction of the first phase of a wastewater treatment plant; and
- upgrade and extension of the existing sewerage network in the area of the City of Karlovac and the neighbouring town of Duga Resa.
Karlovac is located approximately 60 kms southwest of Zagreb, the Croatian capital. The project is expected to significantly improve the environmental quality of rivers in the area, which ultimately feed into the Danube.
The proposed project is expected to provide significant transition impact through increased commercialisation of the municipal water company, including improved cost efficiency, long-term planning, implementation of a cost recovery tariff model, and preparation of a Public Service Contract.
Vodovod i Kanalizacia Karlovac is the municipal water and sewer Company, which is majority-owned by the City of Karlovac. The Company provides water and sewer services to a population of approximately 60,000 in and around the City of Karlovac.
The EBRD is expected to provide a long-term loan of approximately EUR 10 million to the Karlovac water and sewer company with a guarantee from the City of Karlovac.
A portion of the project costs may be provided by grants from the Croatian government and the European Union.
The proposed project is expected to cost approximately EUR 20 million.
Screening categories and rationale for classification
Environmental impacts associated with the construction and operation of drinking water treatment and distribution as well as wastewater collection and treatment facilities are considered to be temporary and could be readily identified and mitigated through the implementation of appropriate measures. The wastewater treatment plant will not exceed the capacity of 150,000 PE. Therefore, the project has been classified as B/0, requiring an Environmental Analysis.
Information reviewed during the environmental appraisal
Environmental Analysis was prepared as a part of the Feasibility Study carried out by EU-funded consultants in 2004.
Environmental impacts and mitigation measures
The information provided showed that the proposed project will result in significant environmental benefits. The investment programme is associated with very limited environmental impacts which are considered to be temporary. Mitigation measures are defined and will be incorporated in the project design, construction and operation. These are as follows:
- Wastewater treatment process design will meet the Croatian and EU environmental standards;
- Tender Documents will ensure that the Contractor prepare environmental, worker health and safety management plan;
- Principles of good management practices will be applied during construction of wastewater collection and treatment systems
The proposed project has mainly environmentally related objectives: it will contribute to drinking water and effluent quality improvement. Wastewater treatment will consequently help protect rivers Kupa, Sava, Danube and Black Sea from further pollution caused by untreated sewerage.
The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports (AERs) prepared for the project covering: (i) ongoing performance of project-specific environmental, health and safety activities, (ii) the status of implementation of environmental improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.
It is expected that Technical Cooperation funding will be provided to assist the Company in improving its financial and operating performance and improving the creditworthiness of the City.
For business opportunities or procurement, contact the client company.
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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 email, mail 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. Requestors’ identities may be kept confidential, upon request.