Oradea Water and Wastewater Extension

Location:

Romania

Project number:

37856

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

14 May 2007

Status:

Signed

PSD disclosed:

27 Feb 2007

Project Description

The proposed project entails the construction of

i) 108 km of new water supply pipework; ii)140 km of new sewers

iii) 99 km of new rainwater collectors and

iv) secondary stage pumping system to ensure sufficient pressure to supply water in the network extension.

The proposed project addresses a key infrastructure need in Oradea and is going to reduce pollution in the Crisul Repede River at the boundary between Hungary and Romania. In Oradea, there are 85.5 km of streets where approximately 26,000 residents are neither connected to the water nor sewerage system. In these areas, wastewater is either discharged into road ditches, resulting in the contamination of ground water, or directly into the river.

 

Transition Impact

Transition goals of the change to the operation include

(i) As a result of this Project, a previously unserved area of Oradea, including communities adjacent to the town will receive water and wastewater services. This expansion of the Company’s services will be the first step into its reorganisation as a regional operator. To support the Company, the project will include a technical cooperation project for regionalisation.

(ii) Private Sector Participation: As a part of the Project private sector options to determine whether it would enable the Company to improve service delivery. As such, the technical cooperation will also include an option study on the various forms of private sector participation.

(iii) Framework for markets: The Project will promote cost recovery principles at the local level by connection 26,000 residents to the water and wastewater network.

(iv) Demonstration Effect: EBRD’s willingness to lend on a non recourse basis will contribute to the development of the structures available for the Romanian municipal customers. EBRD is well placed to asses and structure such transaction given its experience with municipal loans in the country.

 

The Client

S.C. Compania De Apă Oradea S.A.

EBRD Finance

Senior loan of up to EUR 12 million to the Company.

Project Cost

Up to EUR 48.8 million.

Environmental Impact

The Project has been screened B/0 according to the EBRD’s Environmental Policy, requiring an environmental analysis of the proposed development programme to ensure that it is structured to meet Romanian law and EU environmental standards. The Analysis will also assess environmental benefits and impacts of the project and make recommendations for mitigation measures, if required, which will be incorporated in an Environmental Action Plan (EAP).

The project will improve quality and efficiency of sewerage collection and water supply infrastructure and services. The operation would also prevent ground water pollution resulting from discharging untreated waste water to the ground and to improve the water and environmental quality in Cirsule Repede River which flows directly to Hungary.

The adverse impacts of the project are expected to be limited to construction-related issues. As the construction works are likely to be significant (108 km of new water pipes; 140 km of new sewers; and 99 km of new rainwater collectors), they may pose significant disruption to the City’s day to day operations. These impacts will be short term in nature and can be easily mitigated or prevented by good construction practice and appropriate traffic management and notification to the public. The Company will be required to develop and communicate a Public Grievance Procedure, particularly during the construction period.

Technical Cooperation

Consultancy services of up to EUR 200,000 to the Company to assist it (i) in converting into a regional operator; and (ii) option study to explore private sector participation (PSP) options for the provision of water and wastewater services.

 

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)

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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.