The loan would be a sub-project under the framework for Romania EU Cohesion Fund Co-Financing for regionalized water companies, approved on 23 November 2010, EBRD said.
It said the loan has two components. The first component consists of a loan of EUR11.45 million for upgrading and extension of the water and wastewater infrastructure in line with the relevant EU directives. It will be co-financed by a regional investment program of up to EUR115.7 million, which will include significant grant funding from the European Union, the government of Romania and the local governments under Romania’s Cohesion Fund Program.
The second component of EUR4.75 million will be used to re-finance the bank’s existing Municipal Environmental Loan Facility, signed on 23 October 2003.
The financing facility will be discussed at an EBRD board meeting in February.