Investment Plan for Europe: EIB supports rehabilitation and extension of regional water supply and sanitation services in Alba County in Romania - Hoofdinhoud

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  EU i support will improve drinking water supply and sanitation services in Alba County
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  Positive impact on the environment and public health of some 332,000 citizens in Romania
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  For the first time a Romanian public sector project receives EFSI backing

The European Investment Bank (EIB i) is lending €12m to the Alba County Regional Water Company to finance, in conjunction with Cohesion Policy funds, upgrades in drinking water supply and sanitation services for some 332,000 people in Romania’s Alba County. This transaction is backed by the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe, or "Juncker Plan".

European Commissioner for Regional Policy Corina Crețu i said: “Quality drinking water should never be a luxury and should be available everywhere in Europe. This agreement under the Juncker Plan shows the real added value of the EU, investing to protect the environment and improve the health and everyday lives of our citizens.”

EIB Vice-President Andrew McDowell commented: “I am pleased to announce our support for this project which will greatly improve the quality of water services in Alba County and is the first public sector operation in Romania to be backed by the Juncker Plan. Not only will the works have a sizable impact on the public health of people, they will also render the local water infrastructure more cost efficient and environmentally friendly.”

The General Director of Alba County Water Company Cornel Stefan Bardan stated: “The €12m loan granted by the EIB to the regional water operator in Alba County ̶ the first loan to the Romanian public service with EFSI guarantees under the Juncker Plan ̶ will help us to co-finance, at reasonable cost, the major €114m project through which Alba County will comply with the EU water and wastewater directives.”

This project, which is expected to cost €114m in total, includes the rehabilitation of a water intake, the expansion of the water network by 55 km, as well as the extension and rehabilitation of 115 km of water mains and two water treatment plants. In addition, the sewerage network in the region will be extended by 100 km. Finally, the investment will help renovate 49 pumping stations and build two new wastewater treatment plants.

The rehabilitation of the principal water pipes and sewers will reduce leaks and infiltrations and increase the energy efficiency of the systems, thus contributing to climate change mitigation.

Background information:

The European Investment Bank (EIB) is the European Union's bank. It is the long-term lending institution of the EU and is the only bank owned by and representing the interests of the European Union Member States. It makes long-term finance available for sound investments in order to contribute towards EU policy goals. The EIB works closely with other EU institutions to implement EU policy. As the world’s largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of EIB activity is focused on Europe but the Bank also supports the EU's external and development policies.

Investment Plan for Europe

The Investment Plan for Europe (the Juncker Plan) is one of the EU's key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use will be made of new and existing financial resources. The EIB Group is playing a vital role in this investment plan. With guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the European Investment Fund (EIF) are able to take on a higher share of the risk in projects, encouraging private investors to participate in these projects. EFSI was initially intended to mobilise investment of €315bn throughout the EU over a period of three years until mid-2018. In December 2017, the European Parliament and Member States reached an agreement to extend the duration of EFSI to 2020 and increase its financial capacity to €500bn. In addition to EFSI, the new EIAH advisory platform helps public and private sector project promoters to structure investment projects more professionally. The Investment Plan also improves the investment environment in Europe.

As of March 2019, the Juncker Plan was expected to mobilise close to €380bn of additional investments, including over €2.7bn in Romania. Some 842,000 small and medium-sized businesses all over Europe are expected to benefit from improved access to finance.