The EBRD intends to provide a 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:
- modernise the Na Grobli drinking water treatment plant;
- modernise/extend the sewer network in the southern and western parts of the city;
- rehabilitate the existing solid waste landfill at Maslice; and
- support institutional development of the solid waste sector.
The project will have an impact on transition by:
- bringing about compliance with Polish and EU standards in solid waste, drinking water and water supply;
- extending the ongoing creditworthiness enhancement programme for the city; and
- developing the framework for waste management services.
The city of Wroc?aw, 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 €30 million (or its PLN equivalent) senior loan facility, comprising a number of tranches. The city has applied for co-financing by the EU’s Instrument for Structural Policies for Pre-Accession (ISPA), which was approved in October 2000.
Total project cost is estimated at €90 million.
The EBRD's loan is expected to be divided into tranches relating to separate project components, all of which, at this stage, have been screened B/0. For all components, the environmental analysis has been carried out by consultants during the project preparation. The analysis indicates that no significant adverse environmental issues are anticipated.
The project is expected to bring significant environmental benefits by:
- 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; and
- improving the quality of drinking water with associated health and sanitation benefits.
ISPA has approved financing of associated consultancy services.
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