R2CF Constanta sub-project

Location:

Romania

Project number:

41177

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

23 Nov 2010

Status:

Repaying

PSD disclosed:

23 Sep 2010

Project Description

In November 2010 the Bank signed the EUR 33 million Existing Loan in favour of SC RAJA SA, the second largest Regional Operating Company (“ROC”) in Romania. The loan was designed to co-finance the Company’s EUR 192.6 million Cohesion Fund Programme and to re-finance its existing MELF loan.

In 2014, the Company approached the Bank to extend a new loan of up to EUR 10 million to co-finance EUR 47.5 million of additional EU approved investments for the extension of wastewater network in Constanta County, the modernisation of water and wastewater infrastructure in Ilfov County and implementation of additional water and sewerage connections in the Constanta-Ialomita region. The proposed New Loan will enable the Company to solidify its position as a regional operator.

Transition Impact

The sub-project will support environmental improvements and continued regionalisation of water and wastewater services in the County of Constanta, Ialomita, Calarasi, Ilfov and Dambovita which will result in efficiency gains and the transfer of commercial and managerial skills in water and wastewater operations to less-developed regions of country.

Compliance with the European Union relevant water legislation is also envisaged. Benchmarking will be a key component of the Framework.

Additional transition impact for this sub-project will be also achieved through exploring possible involvement of potential private sector in one or more areas of the Company’s operations as a means to achieve operational efficiencies and improve the level of service to the population.

The Client

SC Raja SA Constanta has been EBRD client since 1997 and provides water and wastewater services in the County of Constanta and Ialomita as well as smaller localities of the Counties of Calarasi, Dambovita and Ilfov.

EBRD Finance

  • Tranche 1 of EUR 22.5 million to co-finance the Cohesion Funds project; (signed)
  • Tranche 2 of EUR 10.5 million to re-finance the MELF loan (signed)
  • Tranche 3 of EUR 10 million (under preparation)

Project Cost

EUR 227.4 million for the entire Constanta Sub-Project.

Environmental Impact

Categorised B. The potential E&S impacts associated with the extension and rehabilitation of water distribution and wastewater networks are likely to be site-specific and can be readily identified and addressed through mitigation measures. The Project is expected to result in various community sanitary and health benefits. The due diligence for the project included an environmental and social review of the Company management systems, an audit of selected facilities; and a gap analysis of the project appraisal documents for the project prepared for the EU Cohesion Fund application to assess compliance with the EBRD PRs. The project is expected to result in increase of drinking water and wastewater connection rates. In addition to increasing coverage, the Project will also enable the Company to provide water and wastewater services in line with EU standards at accessible tariffs as well as to continue to improve the efficiency of its operations. Through the rehabilitation of the network, the Project will enable sustainable water and wastewater services delivery. The Company has in place an Integrated Management System (IMS) for both water supply and wastewater systems. The IMS is designed based on ISO 14001 (Environment), ISO 9001 (Quality), OHSAS 18001 (Health and Safety) and ISO 22000 (food safety) standards and SA 8000 (Social Accountability). A revised ESAP has been agreed with the Company including the need to implement further provisions for the management of potential worker health and safety risks as well the need to develop a resettlement framework should land acquisition and resettlement be required. The Company is implementing a monitoring programme to measure compliance with environmental and social requirements, as well as implementation of the ESAP and contractor monitoring provisions. EBRD will monitor the project through annual environmental and social reports.

Technical Cooperation

The Sub-Project already benefits from overall TC under the original Framework and its extension, including:

  • Analysis of the environmental and social impacts, issues and risks and a gap analysis. (€225,000, financed by the Government of Spain)
  • Financial due diligence of sub-projects under the Framework extension (€166,000, to be financed from the Bank’s own resources)
  • Benchmarking and Financial and Operational performance Improvement Programme (€1,007,301 financed by the EBRD Shareholder Special Fund -“SSF”)

 

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)

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

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.

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