R2CF Ilfov Sub-project

Location:

Romania

Project number:

46871

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

17 Jul 2015

Status:

Disbursing

PSD disclosed:

02 Jun 2015

Translated version of this PSD: Romanian

Project Description

The EBRD is considering a loan of up to RON 28 million (€6.5 million) to S.C. Apa Canal Ilfov S.A. (the “company”), a regional operating company providing water and wastewater services in Ilfov County, in Romania’s south east, around the capital Bucharest.
 
The loan will co-finance the company’s RON 308.4 million (€ 68.5 million) regional investment programme approved by the EU under Romania’s Cohesion Fund Programme (the “project”).
 
The proposed transaction will enable the company to expand and modernise its water and wastewater network, resulting in improved water and wastewater services for 8 localities and 60,000 inhabitants of Ilfov County.
 
The proposed investments will enable the company to: (1) increase access to water supply and wastewater treatment in the covered area; (2) reduce water losses and increase operating efficiencies; and, (3) reach compliance with the EU Water and Wastewater Directives in its service area.
 

Transition Impact

R2CF Ilfov together with other sub-projects under the Framework will support environmental improvements, will assist the company to become a viable regional operator, will promote tariff unification to reduce the differential between residential users as the project will help improve access to water and wastewater services in the smaller localities and bring them to one level. Possibilities to involve private sector in areas where it can improve operations and save costs are also envisaged.
 

The Client

S.C. Apa Canal Ilfov S.A. is a regional operating company providing water and wastewater services in Ilfov County, in south-east Romania.
 

EBRD Finance

A senior loan of up to RON 28 million (€6.5 million) to the company.
 

Project Cost

RON 308.4 million (€68.5 million).
 

Environmental and social categorisation, impact, and mitigation
 

Categorised B (2014). The Project will improve the water and wastewater service provisions in terms of accessibility and reliability for 20 per cent of Ilfov County’s population. An independent environmental and social due diligence will review the approved EU application for Ilfov sub-project under R2CF framework extension against Bank’s performance requirements and relevant EU standards, and carry out an environmental and social audit and analysis of the company’s corporate and operational  level policies, procedures and operations. An environmental and social action plan (ESAP) will be developed to address any issues identified by this audit in order to comply with the Bank’s performance requirements including a Stakeholder Engagement Plan (SEP). Also, a Non-Technical Summary (NTS) will be developed and published.
 

Technical Cooperation

The project will benefit from technical cooperation under the original Framework and its extension, including:
 
Pre-signing
  • Environmental and Social Due Diligence and a gap analysis (up to €20,000).
     
  • Institutional and financial analysis of the company (€20,000).
Post-signing
  • Benchmarking and Financial and Operating Performance and Improvement Programme (“FOPIP”) technical cooperation, up to €15,000, as approved under the MoU to cover 40 water utilities in Romania (€1.8 million financed by the Government of Romania from the EU-financed environmental programme).
     
  • Preliminary assessment of the private sector participation potential of the company (up to €15,000).
.

Company Contact

 
Victor Macarenco, Economic Director, victorm@acilfov.ro
 

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

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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.