EBRD to Fund Romania Water Infrastructure Project

The European Bank of Reconstruction and Development (EBRD) has agreed to extend €200m ($263m) to Romania to co-finance modernisation and regionalisation of water utilities in the country.

The co-financing will help Romanian municipalities utilise grant funding from the EU’s Cohesion Fund.

Under the agreement, EBRD will provide finance to Romanian water utilities on a non-recourse basis and is estimated to mobilise additional investments of €1.5bn ($1.97bn) in Romania’s water and wastewater infrastructure.

Under the plan, the bank will provide a €33m ($43m) loan to Romanian water utility SC Raja SA Constanta to part finance extension and rehabilitation of water supply and wastewater collection systems in 24 localities of Constanta and Ialomita counties.

The investment is co-financed by €145m ($190.7m) from the EU’s Cohesion Fund.

Upon completion, the projects will provide EU compliant drinking water services to Constanta county and 98% of the population in Ialomita county, as well as increase the coverage of wastewater collection services in the two counties.