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EBRD and DEG help improve water services in Bucharest
€74 million to provide local residents with better quality drinking water
Bucharest's 2.1 million residents are likely to benefit from better-quality and more efficiently supplied drinking water following a €55.4 million loan from the European Bank for Reconstruction and Development to Apa Nova, the recently privatised water company in Bucharest.
The loan to Apa Nova, which is majority owned by Compagnie Générale des Eaux S.C.A. (GdE), a unit of the Vivendi Environment group, with a minority stake retained by the city, will help finance the completion of a water treatment plant in Bucharest, and bring the city's water-treatment facilities in line with EU environmental and health standards. The EBRD's loan is complemented by an €18.5 million loan from DEG, the German government's finance corporation supporting private-sector investments in emerging markets.
The project is the first public-private partnership in Romania's water industry involving international institutions. Hildegard Gacek, EBRD Director for Romania, said the project is a signal of the Bank's willingness to support the privatisation of public utilities in Romania. Ms Gacek said it is also an important step towards providing Bucharest's residents with a reliable source of treated drinking water, and added that Apa Nova will benefit greatly from the substantial experience, skills and resources of GdE.
GdE established Apa Nova in March 2000 with €35 million in equity, then launched the investment programme to improve the city's water-supply network.
Traian Basescu, Mayor of Bucharest, said the excellent work by GdE on upgrading the plant is now complemented with financing from two very important institutions - the EBRD and DEG. He added that the project sets a good basis for future projects in the city.
Andreas Baude, General Manager of Apa Nova, said this project builds on the exceptional relationship between the Vivendi Environment Group and the EBRD on environmental infrastructure projects in the countries of central and Eastern Europe and the CIS.
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