Municipal Environmental Investment Programme



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

19 Nov 1996



PSD disclosed:

09 Oct 1996

Project Description

An investment programme to expand and improve the waste-water and water supply treatment network and services in Split, Solin, Kastela, Trogir, Pula and Rijeka, all of which are located on the Adriatic coast of Croatia.

Principal objective is to address critical water sector investment needs of selected municipalities, and the secondary objective is to create the basis for a viable system of municipal infrastructure financing in Croatia.

Transition Impact

The investments will improve the appeal of tourist destinations which have proven foreign exchange earning potential.

The Client

The state-owned Croatian Bank for Reconstruction and Development (HBOR) was established in 1992 to help restructure the Croatian economy and channel international financial institution loans and assistance. HBOR will act as borrower of the EBRD and World Bank credits and make back-to-back subsidiary loans to the Split Water and Sewerage Corporation and the Pula Communal Services Corporation.

EBRD Finance

EBRD loan: € 30 million
State/local contribution: € 50 million
World Bank loan: € 60 million

Project Cost

€ 140 million.

Environmental Impact

The project was screened A/0, requiring an environmental impact assessment.

A key aim of the project is environmental restoration and protection, with the following four specific objectives:

  • reduction of pollution of Kastela Bay by extending the waste-water disposal network so that all waste water is collected, treated to primary stage and discharged to the Split and Brac channels, thereby decreasing pollution loads from uncontrolled waste-water discharges;
  • water conservation by replacing leaking distributor mains and improving management of raw water transmission and distribution;
  • reduction of water pollution in Pula by extending the sewage collection and treatment system.

Each sub-project funded under the loan of the EBRD to the Croatian Bank for Reconstruction and Development (HBOR) is subject to environmental due diligence carried out on the basis of Terms of Reference jointly developed between the World Bank and the EBRD.

The two largest and environmentally most important sub-projects are sewage treatment plants near Split and on Ciovo Island, which will collect all municipal and industrial effluents currently discharged into Kastela Bay. This waste water will receive primary treatment and will then be discharged offshore into the Split and Brac Channels, using subsea discharge pipes outside the actual coastal area. At present, only primary treatment is planned.

A key issue is the impact of the discharges from the two treatment plants on water quality. The Croatian authorities and the municipalities believe that dispersion is sufficient to ensure compliance with Croatian environmental standards and all relevant European Union environmental standards. This has been confirmed by the Environmental Impact Assessment, which has been completed for this sub-project. The project includes a monitoring component aimed at continuously monitoring sea water quality in the area receiving the discharges, at controlling water quality and determining whether additional secondary and tertiary treatment may be required.

Environmental studies for other sub-projects have not yet been completed. It is a condition for disbursement for these sub-projects that such studies are carried out and that they are satisfactory to the Bank. A public consultation programme is under way, in accordance with Croatian requirements.

Technical Cooperation

Technical cooperation is being sought to assist HBOR in assuming the administration and implementation responsibilities of the programme and to develop as a municipal credit institution. A separate technical cooperation programme assists the subsidiary borrower utilities to implement their investments and improve operational performance.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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