EBRD lending 36 mln euro for water infrastructure projects in Romania

The EBRD is lending 22 million euro ($23.6 million) to Compania de Apa Bacau and 14.2 million euro to Compania de Utilitati Publice (CUP) Dunarea Braila, the European lender said in separate statements on Thursday.

Both loans will be provided alongside co-investments from the European Union under its Infrastructure Operational Programme for Romania, the EBRD noted.

The EBRD loan and the EU funds offered to Compania de Apa Bacau will allow the utility company to complete a 577 million euro investment project, following which around 600,000 residents, including those in smaller municipalities and rural localities in underserved areas of Bacau county, will benefit from increased access to water and wastewater treatment services.

Meanwhile, the financing provided to CUP Dunarea Braila will allow it to complete a 240.8 million euro programme, which will benefit 200,000 residents in Braila county.

The water utility companies will also benefit from these investments, as improvements in water and wastewater infrastructure will significantly reduce water losses and increase connection rates to water and wastewater networks by 2027, the EBRD said. The project in Braila will also address the low representation of women in the sector by providing training and encouraging their recruitment and retention.

The European lender has previously provided nine other loans to Romanian counties under its Sustainable Water Infrastructure Facility to support Transition (SWIFT), which aims to improve services and help bring the sector in line with EU laws, policies and practices.

(1 euro = 4.9771 lei)