Project description
and objectives:
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The proposed project provides finance to upgrade and expand water and
wastewater infrastructure of the Rousse Regional Water Company and improves
its financial and operational performance. The project is designed to
complement significant ISPA grant investment finance. The Bank will focus on
renovation of the water transmission main, while ISPA grant funds will be used
for water and wastewater infrastructure investments, including a construction
of a new wastewater treatment plant. The proposed project would be the second
ISPA co-financing of a local water utility following the financial close of
the Bourgas Water and Wastewater project in June 2005.
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Transition
impact:
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This transaction has a significant transition impact set in the context of the
overall Bulgaria Water and Waster Facility (BWWF) for EUR 60 million. The
sources of Transition Impact are threefold:
(i) establishing an effective legal and regulatory framework for municipal
finance;
(ii) commercialisation of the operating company as a model for future cities
under the BWWF and
(iii) tariff reform.
Support for the commercialisation of the Company and for institutional
improvements
Technical co-operation mobilised by the Bank will
promote the commercialisation of the Company and improve its financial and
operational performance. Milestones and targets agreed with the Company will
be included as covenants in the Loan Agreement. Additional technical
cooperation is planned to establish and support a Project Implementation Unit
Demonstration effect
The Operation would be the second
transaction in Bulgaria where the Bank would lend directly to a state owned
regional water company without a sovereign or municipal guarantee
Improved financial planning and management for the City of Rousse.
In
order to help the City to improve its creditworthiness a Creditworthiness
Enhancement Programme is planned to assist the City in defining and managing
its budget, including its capital investment plans.
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The client:
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Rousse Water Company is a regional water supply and wastewater treatment
company, 51 per cent owned by the State through the Ministry of Regional
Development and Public Works, 32 per cent by the Municipality of Rousse and
the remaining 17 per cent are shared among other smaller municipalities.
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EBRD
finance:
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EBRD loan to the Company: EUR 8.0 million
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Co-finance: EUR 35.1 million ISPA Grant
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Other sources; EUR 3.7 million
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EBRD TC Donor grant; EUR 0.7 million
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Total project cost:
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Total project cost is estimated to EUR 47.5 million.
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Environmental impact:
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The project was screened B/1.
The renovation of water transmission main (the part of the project which will
be financed by EBRD) is associated with limited environmental impacts and will
result in significant environmental benefits. Potential environmental impacts
of this operation will be mitigated applying internationally recognised good
management practices.
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Technical
cooperation:
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Associated TC programmes are:
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Establishment of Project Implementation Unit (PIU) and assistance with
tendering and project procurement: EUR 250,000 to be identified
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Creditworthiness Enhancement Program for Rousse Municipality EUR 200,000 to be
identified
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Development of Financial and Operational Performance Improvement Plan: EUR
250,000 to be identified
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Creditworthiness Enhancement Program for Rousse Municipality EUR 200,000 to be
identified
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Development of Financial and Operational Performance Improvement Plan: EUR
250,000 to be identified
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Dontcho Barbalov, Operation Leader: barbalod@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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