EBRD finances water and wastewater upgrades in Bulgaria
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are intensifying their effort to deliver a direct impact on people’s lives by financing upgrades to water supply and wastewater systems in Bulgaria’s Stara Zagora and Vratsa regions.
According to a statement, the water and wastewater utility in Stara Zagora, which serves a population of approximately 326 000 across 12 towns, is investing EUR 52 million in the modernisation of its operations. The investment programme is financed largely by EU grants and the EBRD is providing a EUR 3.7 million loan from its own resources, complemented by a EUR 2.4 million loan from the EU’s European structural and investment funds (ESIF).
At the same time, the regional utility that serves the cities of Vratsa, Byala Slatina, Mezdra and Kozloduy is implementing a EUR 21.3 million investment programme. The improvements are financed with EU grants, the state budget and a EUR 2.7 million loan split equally between the EBRD and ESIF.
Both utilities aim to raise their operations to the standard of EU directives, save more drinking water and treat greater volumes of wastewater before discharge.
Both investments are under the Bulgarian ESIF Water Sector Financing Framework, which co-finances strategic investments in water and wastewater infrastructure. To date, financing committed under the framework tops EUR 20 million, of which EUR 11 million comes from the EBRD and the remainder is co-financing provided by the Fund Manager of Financial Instruments in Bulgaria (FMFIB).
FMFIB, a fund of funds, entrusted the EBRD to manage up to EUR 115 million of ESIF and the national budget allocated under the Operational Programme Environment 2014-2020. Blended with additional bank resources, this unlocks about EUR 200 million for the development of the local water and wastewater sector.
The latest financing comes amid the ongoing coronavirus (COVID-19) pandemic, which puts enormous pressure on providers of vital infrastructure to deliver essential services while facing financial constraints. Support for infrastructure providers is a central pillar of the EBRD’s response to the crisis.
The EBRD responded to the coronavirus pandemic with a record investment of EUR 11 billion in 2020 through 411 projects, addressing the urgent needs of the economies where it invests. In Bulgaria, the Bank provided financing worth EUR 100 million last year.
To date, it has committed more than EUR 4 billion in almost 270 investment projects in the country.