The European Investment Bank (EIB) is lending EUR 25 million for the modernisation and extension of drinking water and wastewater infrastructure, including water and wastewater treatment in Cluj and Sălaj Counties situated in the northwest parts of Romania. This will have positive implications for public health and help Romania to fulfil the commitment to implement EU standards in the area of the environment.
This is the first EIB direct loan provided to a water utility company in Romania - Compania de Apa Somes SA. EIB funds will, together with EU Cohesion Funds, co-finance the expansion and rehabilitation of the drinking water treatment system, construction and refurbishment of pumping stations and wastewater collection and treatment in eight conurbations including neighbouring villages covering an area with a total population of some half a million citizens. The investment project, worth EUR 196 million, has also benefited of JASPERS assistance during preparation.
The EIB started cooperating with the predecessor of Compania de Apa Somes - Regia Autonoma Judeteana de Apa Canal Cluj - in 2002 when it financed with EUR 12 million, via the Ministry of Economy and Finance of the Republic of Romania, the development of local water services as part of the ISPA programme.
Background:
The mission of the EIB, the European Union’s long-term financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investments. Since 1990, the EIB’s lending in Romania has reached approx. EUR 6.5 billion to finance investment projects relevant for Romania’s successful integration into the EU. Out of this amount, some EUR 680 million represented loans supporting projects in the environmental and municipal sectors in the country.
The EIB is currently appraising projects for financing in Romania that would increase the Bank’s support for priority sectors such as the environment, sustainable energy and SMEs. This is in line with the EIB’s effort to raise the overall lending volume to reduce the effects of the current economic crisis in Romania.