ENVIRONMENT SECTOR LOAN

The project concerns the design, supervision and construction of priority investment schemes in water supply and wastewater collection and treatment throughout Slovakia to meet requirements of EU Directives and to be co-financed with ISPA. Schemes are prepared by final beneficiaries, municipalities and/or their utility companies and/or water companies, and are selected according to predefined eligibility criteria. The operation will be structured as a framework loan and intermediated through the Slovak Guarantee and Development Bank (SGDB), a publicly owned development bank.

The project's objectives are twofold: (i) increased customer service standards and public health, as a result of improved water supply reliability, drinking water quality, and sewerage connections; and (ii) pollution reduction through cleaner water effluents flowing into the Danube and other watersheds.

By their nature, the schemes are generally environmentally beneficial. Benefits include reduction of pollution by the construction of new or upgraded wastewater treatment plants, reduction of sewer flooding by increasing conveyance capacity, and provision of first time sewerage. Water supply investments are to improve quality and reliability for public health reasons.Improvements of water supply and sewage collection, treatment and disposal represent essential steps towards ultimate compliance with the relevant EU legislation. Approval procedures require preparation of an environmental assessment of the project and a full EIA where required by EU Directives. None of the schemes currently in the project pipeline is expected to require a full EIA in accordance with Directive 97/11/EC.

The works contracts will be procured in-line with EU Procurement Directives.