R2CF Mehedinti Sub-project

Location:

Romania

Project number:

45124

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

13 Nov 2015

Status:

Disbursing

PSD disclosed:

03 Jul 2015

Translated version of this PSD: Romanian

Project Description


The EBRD is providing up to EUR 5.7 million (or RON equivalent) to S.C. SECOM S.A. (the “Company”) a regional operating company (“ROC”) providing water and wastewater services in the County of Mehedinti, located in south-west Romania, to co-finance the Company’s regional EU Cohesion Funds investment programme of up to EUR 72.9 million (“the Project”).

The proposed Project will enable the Company to rehabilitate and extend its water and wastewater infrastructure in nine agglomerations and nine water supply zones in the County of Mehedinti. The investment is expected to improve the quality of the drinking water to meet EU directives as well as to increase both access to and quality of the water and sewerage services.

The EUR 5.7 million loan is a sub-project of the EUR 130 million Extension of the Regional EU Cohesion Fund Water Co-Financing framework (the “Framework”) approved by the Bank to co-finance projects in Romania’s water and wastewater sector alongside EU Cohesion Funds. The project summary document for the Framework was published on 23 September 2010.

Transition Impact

R2CF Mehedinti will support environmental improvements and continued regionalisation of water and wastewater services in the County of Mehedinti, which will result in efficiency gains and the transfer of commercial and managerial skills in water and wastewater operations to less-developed regions of Mehedinti County.

Under the Framework extension, 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

Secom SA Mehedinti is the regional operating company providing water and wastewater services in Mehedinti County, located in south-west Romania, at the border with Serbia.

EBRD Finance

Up to EUR 5.7 million or RON equivalent.

Project Cost

Up to EUR 72.9 million for R2CF Mehedinti.

Environmental and social categorisation, impact, and mitigation


Categorised B (2008). The potential environmental and social ("E&S") impacts of construction/ rehabilitation of wastewater treatment plants and extension and rehabilitation of water distribution and sewerage networks will be site-specific and readily identified and addressed through adequate mitigation measures. Implementation of the sub-projects for water supply and wastewater discharge and treatment will ensure compliance with national and EU requirements within the transition period agreed for meeting requirements of Directive No. 98/83/EC on drinking water quality and Directive 91/271/EC on urban wastewater.

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 competent environmental authorities also undertook an environmental impact assessment ("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, it has been decided by the authorities that the 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. Also the location of project components towards protected areas including those under Natura 2000 network were considered and for all project components it has been concluded that the project is not likely to have negative impact on natural habitats and species for which conservation of important sites have been designated.

The ESDD showed that the project will result in significant environmental benefits and will 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.

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. 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.

An 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.

Technical Cooperation

The sub-project will benefit from the amounts approved under overall TC under the original Framework and its extension, including:

Pre-signing

•    Environmental and Social Due Diligence.
•    Financial Analysis of the Company and the Guarantor
•    Feasibility of potential energy efficiency investments.

Post-signing

•    Benchmarking and Financial and Operating Performance and Improvement Programme (“FOPIP”).
•    Procurement Benchmarking.
•    Preliminary assessment of the potential for Private Sector Participation.

Company Contact

Mariana Alexandroniu, Economic Director, S.C SECOM S.A, Mehedinti, Blvd.Carol 53, Drobeta-Turnu Severin 220146
 

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

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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.