Release date: 18 July 2025
Promoter – Financial Intermediary
AQUAFIN NVLocation
Description
The project will co-finance the 2025-2028 Aquafin's investment programme comprising the construction, extension, rehabilitation and upgrade of sewage collectors, stormwater drainage systems, pumping stations and wastewater treatment plants in Flanders. In addition, it will support the construction of two sludge dryers working on residual heat.
Additionality and Impact
The project concerns the co-financing of part of the 2025-2028 investment program of Aquafin, responsible for the supra-municipal wastewater infrastructure in Flanders, Belgium, with a population of nearly seven million people. The project comprises the extension and improvement of wastewater collection and treatment infrastructure. Improvements are reached through the separation of stormwater flows from the wastewater collection network, the rehabilitation of the wastewater collection and treatment system as well as the sludge treatment system. The investments in wastewater collection and treatment will reduce pollution of groundwater and surface water. The investments in stormwater facilities will reduce the risk of sewers flooding and overflowing to surface water by increased precipitation as a consequence of climate change. The investments in sludge dryers will substantially reduce the Promoter's use of fossil fuels and dependence of third parties. All investments support the water utility to increase its energy efficiency. The project contributes to the EU and EIB policy objectives of environmental protection and climate action and will help mitigate market failures by financing infrastructure that generates positive environmental public health and climate externalities that are not fully reflected in the applicable wastewater tariffs in the service area. The project also supports the strengthening of the EU's economic, social and territorial cohesion.
Primary advantages of the Bank's financing is its long duration, which is aligned to the economic life of the underlying assets, the flexibility in terms of the availability and grace periods, and the diversification of funding sources at an attractive cost. This help significantly to create a stable funding base: The capital-intensive nature of Aquafin's operations requires sizeable debt financing, to which the Bank contributes notably, alongside commercial banks and capital markets.
Objectives
The objective is to extend and improve the supra-municipal wastewater infrastructure in Flanders, the service area of Aquafin. Improvements are reached through the separation of stormwater flows from the wastewater collection network, the rehabilitation of the wastewater collection and treatment system as well as the sludge treatment system. Investing in wastewater collection and treatment will reduce groundwater and surface water pollution, while investing in stormwater facilities will reduce the risk of sewers flooding and overflowing to surface water by increased precipitation as a consequence of climate change. In addition, the construction of two sludge dryers will substantially reduce the promoter's use of fossil energies and dependencies on third parties.
Sector(s)
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
Proposed EIB finance (Approximate amount)
EUR 265 million
Total cost (Approximate amount)
EUR 531 million
Environmental aspects
The project will ensure continued compliance with the Urban Waste Water Treatment Directive through the construction, extension, rehabilitation and upgrading of the sewers, pumping stations and wastewater treatment plants across Flanders. Full compliance with the Directive 91/271/EC was achieved in 2012, and Aquafin's investment plans are now aimed at connecting agglomerations with fewer than 2,000 population equivalents in line with the new Urban Waste Water Treatment Directive (2024/3019).
Procurement
The promoter will have to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.
Status
Signed - 31/07/2025