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Water services in Moldova’s capital improved with EBRD financing
Water leakage and environmental pollution from Chisinau’s water system will be reduced with the help of a US$ 30 million (ECU 26.5 million) loan from the European Bank for Reconstruction and Development (EBRD) to Apa Canal Chisinau (ACC), the enterprise responsible for providing Chisinau’s water and waste-water services.
“The EBRD financing will go a long way towards solving Chisinau's most urgent water and waste-water problems. The project has been developed with cost savings in mind. Savings in energy use alone are forecast to rise to well over US$ 3 million per year in today's terms by the end of the implementation period,” said Johan Bastin, Director of the EBRD’s municipal and environmental infrastructure team.
“The project should substantially improve both the quality and reliability of Chisinau's water supplies as well as making major reductions in leakage,” said Nicolae Vetrogon, Chairman of the ACC.
The total project cost of US$ 60 million (ECU 53 million) will enable ACC to meet its priority investment needs on a self-financing basis and will be used to finance investments in improving drinking water supply and waste-water treatment. These include pumping stations, pipeline rehabilitation, water storage, metering, and sludge handling and treatment. In addition to the considerable savings in energy costs, there will be significant environmental benefits through reduction of pollution in the Byk and Dniester Rivers and the Black Sea.
In addition to the EBRD's US$ 30 million loan, the financing package includes grants totalling
US$ 2.9 million from the Danish Environmental Protection Agency and the European Commission’s Tacis programme. The EBRD loan is to be guaranteed by the Republic of Moldova, which is also providing additional funds from its budget. The balance of funds will be provided from ACC’s own cash generation and from municipal budgets.
ACC was transformed into a joint-stock company as part of this project's development in September 1997 and operates under the joint supervision of the Government and the Municipality of Chisinau. An important aspect of the project is the strengthening of ACC's financial and operational performance by restructuring its operations and introducing a corporate development programme. An Italian-led group, incorporating expertise from Italian and British water operators, has been selected as Corporate Development Partner to assist ACC in implementation of its financial and operational performance improvement programme.
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