R2CF Maramures sub-project

Location:

Romania

Project number:

43406

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

25 Jun 2013

Status:

Repaying

PSD disclosed:

27 Feb 2013

Translated version of this PSD: Romanian

Project Description

The EBRD is considering providing a RON 46 million (EUR 10.8 equivalent) loan to S.C. Vital S.A. (the “Company”), a water utility operating in Maramures County (ca. 510 thousand inhabitants) in northern Romania.
The EBRD loan will co-finance a EUR 148.2 million regional investment programme supported by significant grant funding from the European Union, the Government of Romania and the local governments under Romania’s Cohesion Fund Programme.
Upon implementation, the project is expected to comply with the following indicators:

- Connection rate to water supply services will increase to 85 per cent in 2017 and connection rate to wastewater services will increase to 80 per cent in 2017.
- The Company’s strategy is focused on improving the quality of water and wastewater services in its area of operation, in line with EU standards, by 2018.
The proposed project will enable the Company to extend and rehabilitate its network in the County of Maramures. Investments are expected to significantly reduce water losses, optimise operating costs and expand water supply and wastewater collection and treatment services in Maramures County in line with the relevant EU directives.

Transition Impact

R2CF Maramures together with other sub-projects under the Framework will support environmental improvements, efficiency gains from continued regionalisation of water and wastewater services and transfer of commercial and managerial skills in water and wastewater operations to less-developed localities. Compliance with the European Union relevant water legislation is also envisaged.

Under the Framework extension, the transition impact is also sought by building energy efficiency components into the existing water projects.

The Client

S.C. Vital SA, regional operating company providing water and wastewater services in the County of Maramures, located in northern Romania, at the border with Ukraine.

EBRD Finance

Up to RON 46 million (equivalent of EUR 10.8 million) for R2CF Maramures.

Project Cost

RON 630 million (equivalent of EUR 148.2 million).

Environmental Impact

Categorised B. The potential E&S impacts of construction/rehabilitation of wastewater treatment plants and extension and rehabilitation of water distribution and sewerage networks are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. The competent environmental authorities undertook EIA screening procedure for individual project components in accordance with applicable Romanian EIA legislation that is harmonised with the EU EIA Directive. Following the screening and public consultations, the authorities decided that EIAs were not required for any of the sub-projects. None of the sub-projects fall under category A in accordance with the Bank's Environmental and Social Policy.

Environmental and social due diligence (ESDD) has been carried out by independent consultants. The ESDD included a site visit, review of the Company's existing E&S management systems, available technical and environmental documentation prepared in accordance with Romanian permitting requirements and the project appraisal documents prepared for the EU Cohesion Fund application as well as assessment of the project against EU environmental requirements and the EBRD PRs.

The ESDD concluded that the implementation of the sub-projects for water supply and wastewater discharge and treatment will ensure compliance with national and EU legislation within the transition period agreed for meeting requirements of Directive No. 98/83/EC on drinking water quality (by 2015) and Directive 91/271/EC on urban wastewater (from 2013 to 2018 depending on the agglomeration size). The project is not expected to require any land acquisition or cause any significant displacement or resettlement impacts. However, some temporary disturbance may occur during the construction phase. There is a provision within the ESAP to develop a process to address any such disturbance and or displacement that may occur, in accordance with the Bank’s policy. No other potential significant adverse impacts or non-compliances with the EBRD PRs have been identified. The construction works will have limited, localised and short-term adverse impacts, which can be mitigated or prevented by adhering to good construction practice.

The ESDD showed that the project will result in significant environmental benefits and improve the quality of the local environment and mitigate public health risks by extending the drinking water supply and wastewater collection networks, improving drinking water treatment and quality, improve sewage collection and wastewater treatment systems. 53 per cent of the population of Maramures County (total population 510,000 inhabitants) will benefit of improved water and sewerage services due to the project; additional 50,000 population will be connected to the water network and 100,000 to the sewerage system due to the project.

Part of the project components will be implemented within NATURA 2000 sites. This involves rehabilitation and extension of water distribution and wastewater networks, a chlorination plant and two wastewater treatment plants, a new water intake, a new wastewater pumping station, and a new chlorination plant within or close to NATURA 2000 sites. The environmental authorities concluded that these project components are not likely to have significant impacts on NATURA 2000 sites and that no appropriate assessment was required of the project. The screening decision and environmental notification present measures for the minimization of the impact on the sites during the construction period, respectively operation period. The NATURA 2000 declaration has been issued conditional to the implementation of these specific measures.

The ESDD established that the Company has an integrated ISO 9001, ISO 14001, and OHSAS 18001 management system and certifications in place.

An Environmental and Social Action Plan (ESAP) has been developed for mitigation of identified E&S issues and impacts during preparation, construction and operation of the project, and to bring the Company's operations into compliance with the EBRD's PRs.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP. The Bank will commission a completion audit and may also conduct monitoring visits, as required.

Technical Cooperation

The project will benefit from TC under the original Framework and its extension, including:

  • Analysis of the environmental and social impacts, issues and risks and a gap analysis. (EUR 125,000 under the original Framework and extended by EUR 100,000 to support sub-projects under the Framework extension), financed by the Government of Spain.
  • Financial due diligence (EUR 75,000 under the original Framework and extended by EUR 91,000 to support sub-projects under the Framework extension), financed from the Bank’s own resources.
  • Benchmarking and FOPIP programme (EUR 750,000 under the original Framework and extended by EUR 257,301 to support sub-projects under the Framework extension), financed by the EBRD Shareholder Special Fund.
  • Sector-Wide Pilot Project to Enhance Transition through Procurement Benchmarking and Certification (EUR 180,000 under the Framework extension), financed by the EBRD Shareholder Special Fund.
 

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.