Loan facility to the city of Wroclaw to co-finance a programme of investments in water supply, sewerage and solid waste management.
The project aims to: (i) modernise the Na Grobli drinking water treatment plant; (ii) modernise/extend the sewer network in southern and western parts of the city; (iii) rehabilitate the existing solid waste landfill at Maslice; (iv) construct a new landfill; (v) introduce a municipal services management programme.
The project will have an impact on the transition through: (i) bringing about compliance with Polish and EU standards in solid waste, drinking water and water supply; (ii) extending the ongoing creditworthiness enhancement programme for the city; and (iii) developing a waste strategy and corporatisation of utility services.
The city of Wroclaw, the capital of Lower Silesia and the fourth-largest city in Poland, with a population of 640,000, will be the borrower. The project would be implemented by the city’s water company (MPWiK) and its waste department (ZGO).
The EBRD will provide the city with a €25-40 million (or its PLN equivalent) senior loan facility, comprising a number of tranches. The project is expected to be co-financed by the European Union’s Instrument for Structural Policies for Pre-Accession (ISPA).
Total project cost is estimated at €110-120 million.
The EBRD's loan is expected to be divided into tranches relating to separate project components, which have been classified as follows:
- B/0 for the sewerage component
- B/0 for the water supply component
- B/0 for the waste disposal rehabilitation
- A/0 for the new landfill
For the B/0 screened components, environmental analysis by consultants is under way. For the A/0 screened new landfill, a separate EIA in accordance with EBRD and EU requirements will be carried out. Initial Bank due diligence, including site visits, indicates that no significant adverse environmental issues have been identified to date.
The project is expected to bring significant environmental benefits:
- bringing about compliance with EU environmental directives, in particular the Urban Waste Water Directive and the Landfill Directive;
- resolving serious environmental, health and safety problems relating to the Maslice landfill, including pollution of the neighbouring Odra River;
- extending sewerage services to 40,000 people currently not served;
- improving the quality of drinking water with associated health and sanitation benefits.
€0.6 million – the size and scope are to be refined during project preparation.
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