EBRD to provide €5m liquidity facility to boost Romania’s water services

The European Bank for Reconstruction and Development (EBRD) has provided a standby liquidity facility of around €5m to SC Raja Constanta SA (RAJA) to support Romania’s water utility sector.

This is expected to mitigate the impact of the Covid-19 pandemic.

This comes under the Vital Infrastructure Programme of the Solidarity Package of EBRD.

The Constanta county owns the majority of RAJA, the largest regional water and wastewater company in the country that serves over three million domestic, industrial and public-sector clients in seven counties.

So far, RAJA has been a longstanding client of the EBRD and received five loans worth €101m. The previous financing has supported the company in achieving compliance with EU directives regarding water quality and wastewater collection and treatment.

As part of its work with EBRD, RAJA has committed to significantly reduce water losses.

Under a performance-based contract that RAJA signed with Administração e Gestão de Sistemas de Salubridade, the Portuguese water company is undertaking necessary upgrades while providing a performance guarantee.

EBRD has so far provided €8.8bn to aid the economy of the country via 454 projects.

In April this year, EBRD agreed to provide a €20m to a project that involves upgrading water and wastewater services in Romania’s Buzau county.

The EBRD loan was awarded to the regional water and wastewater utility SC Compania de Apa SA Buzau.