Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

22 Jul 1997



PSD disclosed:

05 Mar 1997

Project Description

Loan financing of water sector investments in ten medium-sized cities, together with support to the institutionalisation of municipal credit and programmes for municipal utility corporatisation.

Project objectives: (i) Finance priority water-supply and waste-water investments to improve service provision; (ii) enable the institutionalisation of municipal credit; (iii) enhance the performance of the water companies and municipalities.

Transition Impact

The project will introduce credit to the financing of municipal investments, and by institutionalising municipal credit will impact the whole structure of the municipal finance system. The municipal infrastructure investments will also support harmonisation with EU environmental standards, and provide better services for consumers, industry and commerce.

The Client

The Government of Romania will on-lend the proceeds of the loan to local governments and water companies in ten cities (Arad, Bacau, Bistrita, Botosani, Braila, Cluj, Constanta, Focsani, Oradea and Tirgoviste). During implementation, steps will be taken to institutionalise municipal credit provision to enable wider access to credit for municipalities across Romania.

EBRD Finance

A sovereign loan of US$ 75 million (ECU 65 million). Co-financing is anticipated with EC Phare, as well as with central and local governments and the water companies.

Project Cost

US$ 188 million (ECU 163 million).

Environmental Impact

This project will have environmental benefits, particularly with respect to the health of the population. It will lead to better living conditions and reduce health hazards from water contamination by improving waste-water collection and treatment. Environmental issues associated with the investments have been identified in an environmental analysis and addressed with adequate mitigation measures.

Technical Cooperation

Technical cooperation totalling ECU 4 million has been committed during project preparation, and a further ECU 5 million is anticipated during implementation.


Business opportunities

For business opportunities or procurement, contact the client company.

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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

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 ( 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.

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