Centre for Developing Markets | Центр поддержки развивающихся рынков | Centrum pro rozvojové trhy

EBRD supports consolidation of Romania’s water services

€2.2 million assistance to make best use of EU funds

The Government of Romania is determined to increase the rate of absorption of European Union funds, including through leveraging expertise from International Financial Institutions like the EBRD.

The Bank will provide technical assistance to support Romania in further developing and consolidating the water and waste water services in the country over a period of two years, according to an agreement signed by Matteo Patrone, EBRD Regional Director for Romania and Bulgaria, and Marius Nica, Delegated Minister for European Funds at Romania’s Ministry of Regional Development, in Bucharest today. The assignment will focus on sustainability of the regional water utilities, as beneficiaries of large EU grant amounts.

Mr. Patrone said: “We are very pleased to join forces with Romania and the EU in this important sector. We will offer our expertise to ensure that EU structural funds are used in an effective and efficient way, so that they can deliver better and sustainable water services. The EBRD will further support the water sector reforms, with the objective to improve governance and sustainability of the water services, with focus on sector consolidation and long term asset management strategies.”

Mr. Nica said: “The cooperation with the European Bank for Reconstruction and Development offers us the possibility to act with the aim of supporting the strategic development of the water and waste water sector, and ensure the sustainability of investments made from European funds in this area.”

The signing follows an agreement concluded in February 2016 about the provision of technical assistance for projects and programmes funded through EU Structural Instruments under the 2014-2020 programming period. Under this agreement, the water sector has been identified as one of the strategic priorities.

When Romania joined the EU in 2007, its water sector was fragmented with hundreds of small and inefficient water utilities across the country. Granted several transition periods to reach EU standards for water and wastewater infrastructure and services, the country began an ample process of consolidating and regionalising its utilities to turn them into more efficient autonomous public enterprises acting under commercial law.

During the last decade, the EBRD supported the regionalisation process by providing co-financing to EU programmes and facilitating technical assistance for sector reforms. Significant progress was achieved with most of the urban population today having access to modern water infrastructure and improved service quality. More remains to be done to extend the water infrastructure in smaller municipalities and rural areas and to integrate them into the regional water systems.

The EU 2014-2020 programmes include further €3.5 billion of grant support for Romania’s water sector. The country works on how to best approach the next phase of development so as to effectively extend access to water and wastewater, enhance public service standards and increase efficiency.

Along traditionally financing of the water sector, the EBRD has already worked with Romania on previous technical assistance projects. Now EBRD staff and consultants will work on formulating strategic options, refining and extending the country’s benchmarking system and capacity building for regional companies in the water sector. Conclusions and expertise will be shared through workshops and seminars.

The EBRD is a leading institutional investor in Romania. To date it has invested over €7.6 billion in 406 projects in the country, and mobilised more than €14 billion from other sources of financing.

Source: EBRD

EBRD finances new buses for Romania’s city of Sibiu

 Public transport operator to receive 65.7 million lei loan

The EBRD is financing the acquisition of 50 new, low-emission buses in the Romanian city of Sibiu with a 65.7 million Romanian lei loan (about €14.2 million) to improve public transport and the local environment.

The new Euro-6 low-floor vehicles will reduce air pollution in Sibiu and will improve access and mobility in the region.

The loan is provided to the local transport company Tursib and is in line with the city’s Sustainable Urban Mobility Plan developed with the EBRD’s support.

The financing is part of the EBRD’s Romania Framework for Sustainable Mobility and Access to Road Transport (SMART) programme, which finances improvements in public transport infrastructure and services in the country.

Matteo Patrone, Regional Director for Romania and Bulgaria at the EBRD, said: “Sibiu is a story of a massive transformation: infrastructure investments combined with structural reforms have dramatically changed the city over the last decade. The EBRD is continuing its engagement with Sibiu to improve the quality of life, boost tourism and economic growth in the city and surrounding areas.”

The long-term partnership between the Bank and Sibiu dates back to 2004 when the city was selected as a 2007 European Capital of Culture and infrastructure investment became a priority.

Since then the reform-minded municipality has become one of the largest recipients of EBRD municipal financing. The Bank lends directly to the municipality, but also to the city’s public transport and water and wastewater companies.

Previously, Tursib received a €10 million loan in 2006 to buy 35 new buses, and €4.8 million in 2014 for the construction of a new bus depot.

The EBRD is a leading institutional investor in Romania. In 2017, the Bank has invested over €540 million in more than 28 projects in the country. To date it has invested over €7.8 billion in over 410 Romanian projects.

Source: EBRD

EBRD, EIB, EU and World Bank finance Moldova-Romania power link

Investment to help diversify Moldova’s electricity supply

In a joint effort to strengthen the Moldova’s energy security, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB)European Union (EU) and the World Bank are providing a €270 million package to finance a permanent interconnection between the electrical networks of Moldova and Romania.

This interconnection is of critical importance for the diversification of Moldova’s electricity resources. At the moment, the country depends on a single plant fuelled by natural gas, oil and coal and electricity imports from Ukraine for up to 80 per cent of its supplies. The link to the Romanian electrical network will considerably enhance the stability and reliability of its power supply – a prerequisite for the country’s economic development.

Diversification of electricity resources will open up Moldova’s electricity market to increased competition, with the enhanced access to the European market generating economic benefits for both companies and citizens. The project will ultimately pave the way towards Moldova’s integration into the European electricity grid, ENTSO-E.

The package includes EIB and EBRD loans of EUR 80m each, a EUR 70m loan from the World Bank and a EUR 40m investment grant from EU funds.

The investment covers the construction of a new 400 kV high-voltage overhead line between Vulcanesti, in the south of Moldova, and the capital Chisinau, the upgrading and expansion of the substations in Chisinau and Vulcanesti and the construction of a 600 MW back-to-back converter substation in Vulcanesti.

The interconnections will be built by Moldova’s public electricity utility Moldelectrica over three years, between 2019 and 2022.

Deputy Prime Minister of Moldova Octavian Calmic said: “The implementation of investment projects to develop the electricity interconnection between Moldova and Romania is a strategic objective aimed at achieving a more efficient and competitive energy system that will ensure the country’s energy security, the modernisation of existing energy infrastructure and integration into the EU energy market. Not only will this project provide a higher level of energy security, it will also contribute to competitive prices on the domestic electricity market, permanent access to the regional electricity market and, as a result, an energy price that is less burdensome for consumers.”

EBRD Director for Power and Energy Harry Boyd-Carpenter added: “The project is a game changer for Moldova’s energy security. It will introduce genuine competition for the existing sources of electricity by allowing Moldova to access supplies from Romania and, through Romania, the wider region. The project is a first step in the process of integrating Moldova into the European electricity market. Greater regional interconnection is also critical in allowing for the absorption of ever-greater quantities of intermittent renewable energy.”

EU Ambassador to the Republic of Moldova Peter Michalko stated during the event: “The partnership between the EU, the EBRD, the EIB and the World Bank in support of this project will increase competitiveness on the energy market for the benefit of the citizens of the Republic of Moldova.”

EIB Vice-President Alexander Stubb commented: “This project shows how the EU bank is helping to open borders and build bridges between the Eastern Neighbourhood and the EU market. Safe and diverse energy supplies are key factors enabling the Moldovan economy to develop further.”

World Bank Country Manager for Moldova Anna Akhalkatsi said: “The Word Bank Group welcomes the launch of this crucially important project which will contribute to the strengthening and diversification of Moldova’s critical infrastructure, but above all will ensure that the citizens of Moldova will have a stable and secure energy supply.”

Source: EBRD

EBRD finances new buses for Romanian city Brasov

Public transport operator to commercialise operations

Combining environmental benefits with sound commercial principles, the EBRD is providing up to RON 114 million (€ 25 million equivalent) to finance the acquisition of 105 new buses by the Romanian city of Brasov, located in the central part of the country and inhabited by more than 250,000 people.

The diesel buses will meet EURO-6 emission criteria and their use will generate significant CO2 and toxic emissions savings. As low-floor carriages the buses will offer users modern comfort and accessibility.

The buses will be acquired by Brasov Urban Transport Company (RATBV), the recipient of the EBRD loan. As part of the funding package the Bank plans to mobilise grants to support the company’s commercialisation and strengthen the regulatory and institutional set-up. A traffic study and a long-term transport plan as well as a public service contract with concrete benchmarks for performance measurement are also part of the comprehensive plan to put municipal transport in Brasov on a sound and sustainable commercial footing.

“This project aims to encourage local development in the city of Brasov and the surrounding area,” said Matteo Patrone, EBRD Director and Regional Head of Romania and Bulgaria. “Better infrastructure not only will benefit the local economy but will also give a boost to this famous tourist hub.”

The loan to RATBV is the fifth project under the EBRD’s Romania Framework for Sustainable Mobility and Access to Road Transport programme, which finances improvements in public transport infrastructure and services in the country. It is in line with Brasov’s Sustainable Urban Mobility Plan, which focuses on the modernisation of its public transport system.

The EBRD is a leading institutional investor in Romania. To date it has invested over €7.6 billion in over 400 projects in the country.

Source: EBRD

Romania’s Transport Minister in working visit to EBRD

Meetings focus on urgent need for infrastructure financingUnderlining his country’s commitment to developing urgently needed infrastructure, Romania’s new Transport Minister Felix Stroe paid a working visit to the EBRD today.

At the Bank’s Headquarters in London, Minister Stroe met EBRD Managing Director for Infrastructure Jean-Patrick Marquet. Both sides underlined their commitment to working together to develop Romania’s priority infrastructure projects.

Discussions focused on the transport master plan, road-building and projects in the railway sector. The parties discussed financing for the planned East-West motorway, which will connect the city of Iași in eastern Romania with Târgu Mureș in the north-central region; the planned Bucharest Metro Line M6, which will link the capital’s northern railway station, Gara de Nord, to the Henri Coandă International Airport; and projects to modernise the railway sector.

They also considered technical assistance to improve the performance and efficiency of state-owned enterprises in the transport sector.

Jean-Patrick Marquet welcomed Romania’s strongly growing economy. He added: “Transport infrastructure probably constitutes one of the weakest areas of the business environment in the country but is vital for Romania’s development. We are certain that today we established a very strong basis for future cooperation in this crucial economic sector.”

Minister Stroe said: “In particular, we need the EBRD’s experience and expertise in restructuring state-owned enterprises, to make them more efficient and effective and help them meet the private sector’s performance levels.”

The EBRD is a leading investor in Romania and to date has invested €7.5 billion in some 400 projects in the country.  In 2017, the Bank has signed more than 20 projects worth a total of over €400 million.

According to the EBRD’s latest economic forecast, Romania’s economy will grow at 5.3 per cent this year and 4.2 per cent in 2018, enjoying a growth rate comparable to the pre-crisis levels of the mid-2000s.

Source: EBRD

Country: Romania | Czech Infrastructure Association
Centre for Developing Markets | Центр поддержки развивающихся рынков | Centrum pro rozvojové trhy
Date Project Title Country Donor Category Business Sector Budget Deadline
16.02.2018 GRCF Chisinau Building Sub-Project Moldova EBRD Services, Works Infrastructure 25 000 000 EUR 16.02.2019
16.02.2018 Provision of Technical Assistance to the Programme Management and Support Unit (PMSU) at the Ministry of Regional Development, Construction, Architecture and Communal Services of Ukraine Ukraine EIB Services Infrastructure 4 000 000 EUR 28.03.2018
16.02.2018 IPA – Preparation of Long-term Strategy and Law on Climate Action Macedonia EC Services Climate Change 1 150 000 EUR 23.03.2018
16.02.2018 IPA – Rehabilitation works on railway section Kos-Trebesica Montenegro EC Works Railways N/A 13.06.2018
16.02.2018 Reconstruction, Capital Repairs and Technical Re-equipping of the Main Gas Pipeline urengoy – Pomary – Uzhgorod Ukraine EBRD Services, Works Infrastructure 300 000 000 EUR 16.02.2019
16.02.2018 Energy Efficient Refurbishment of Zenica Hospital Bosnia and Herzegovina EBRD Works Infrastructure 11 600 000 EUR 16.02.2019
15.02.2018 Occupational Road Risk Toolkit N/A EBRD Services Highways 150 000 EUR 08.03.2018
14.02.2018 Construction of Tunnel Žaba (Hutovo) L = 975m1 and Roads P 142 — P 164 Bosnia and Herzegovina EIB Works Highways N/A 27.03.2018
14.02.2018 Optimization Of Water Supply And Distribution System, Including Replacement And Rehabilitation Of Water Supply Andwastewater Disposal Networks Ukraine WB Works Water Supply & Sanitation N/A 01.03.2018
14.02.2018 Kirovohrad Wastewater Treatment Plant – Reconstruction Ukraine WB Works Water Supply & Sanitation N/A 05.03.2018