The European Bank of Reconstruction and Development (EBRD) has allocated a €17.1m loan to the Romanian water utility SC Apa-Canal Sibiu to support its plan to modernise water services in the country.
The utility will use the loan for the construction, extension and rehabilitation of water supply and wastewater treatment systems.
The funds will also be used to advance the quality of water supply and sanitation services to nearly 280,000 people in the central Romanian county of Sibiu.
The European bank has allocated the loan under a €200m Regional EU cohesion fund aunched in 2010.
EBRD said the framework is expected to call up additional investments of around €1.5bn in the country's water and wastewater infrastructure.
Jean-Patrick Marquet, EBRD director of municipal and environmental infrastructure, said that in 2010, the bank provided €105.6m to finance similar investments in Constanta, Iasi, Brasov, Buzau and Dambovita-Targoviste counties, helping to advance the quality of water supply and wastewater services across the country and align the services with EU standards.
Mircea Niculescu, Apa-Canal Sibiu director general, added: "The EBRD's investment will provide the needed co-financing, which will enable the firm to implement a substantial program financed by the EU cohesion funds."
So far, the European bank has allocated about €5.4bn to various sectors of the Romania's economy.
The project is part of the €124m EU cohesion funds programme, which will enable the company to reduce water leakages, optimise operating costs as well as bring its wastewater collection and treatment system in line with EU regulations.
SC Apa-Canal Sibiu provides its services for residents in 34 administrative units in the southern, central and north western parts of Sibiu county, as well as those in Fagaras town in neighbouring Brasov county.
Caption: SC Apa-Canal Sibiu will use the EBRD loan for water supply and wastewater treatment systems in Romania
