The European Investment Bank (EIB) lends PLN 330 million (approx. EUR 73.7 million) to finance modernisation and extension of the water and wastewater infrastructure in the City of Kraków.
Mrs. Marta Gajęcka, EIB Vice-President responsible for lending in central and eastern Europe, including Poland, commented: “The loan will provide the water and wastewater utility of the Municipality of Krakow with a direct access to EIB funds granted on favourable terms in difficult market conditions. The project will contribute to increase the quality of life of Kraków’s citizens and help Poland to meet its commitments to implement EU rules in the area of environment”.
The EIB loan will support the implementation the Investment Programme of 2009-2013 of Krakow’s Municipal Water Supply and Wastewater Treatment Company that is the loan borrower and project promoter. This programme is focused on the extension and modernisation of City’s water production and treatment plants, water supply network, sewage system and wastewater treatment plant.
The EIB has a very well developed cooperation with Polish municipalities, utility companies and regions. Only since 2007, EIB loan commitments to Polish municipalities, utility companies and regions have reached some EUR 1.2 billion, including the current loan. The municipal utilities sector becomes more and more important client for the EIB in Poland and its share in the EIB lending to the Polish sub-sovereign clients reached 36% in 2009.
Background:
The mission of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investment. Poland is the 6th major beneficiary of EIB loans worldwide (after Spain, Germany, Italy, France, and the UK) and the major customer of the EIB in the region of Central and Eastern Europe.