Aqualia Investment Venture

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In 2009, EBRD made a 49 per cent investment in Aqualia New Europe (“ANE”), which is an investment vehicle established by aqualia gestión integral del agua, S.A. (“Aqualia”) as its platform for investing in EBRD’s countries of operation. Aqualia New Europe will make investments in full or partial water cycle concessions, acquisitions, service contracts and contracts for the construction & management of hydraulic infrastructure in the Bank's countries of operations. In 2011, ANE entered into a joint venture with SC Raja Management Solutions to explore investments in Romania, Bulgaria and Romania. As EBRD expands into the SEMED region, ANE will also explore investments in this region and is currently contemplating an equity investment in the New Cairo Wastewater Plant. The project is a 20 year concession to design, build and operate a wastewater treatement plant, which has an average capacity of 250,000 m3/day. This operation will support and expand private sector participation in the water utility sector in Central and Eastern Europe, including Hungary, Slovak Republic, Romania, Poland, Russia and other countries of operations, including SEMED. The project will play a key role in supporting a major international water operator as it expands into new markets. The investment will help to restructure and improve water and wastewater operations in its target markets, ensure availability of funding sources necessary to address urgent infrastructure needs, thereby promoting long term sustainability. Aqualia New Europe will invest in concessions, service contracts, contracts for the construction & management of hydraulic infrastructure and acquire companies active in the water and wastewater sector in the Bank’s countries of operations. The Sponsor’s group of companies currently serve more than 23 million people in 14 countries and operates more than 850 contracts. An equity investment of up to EUR 30 million. Up to 61.2 million. Screened C/1. Equity investment in a newly created SPV company will result in no direct environmental impacts as such. By its purpose it is expected to have mainly positive effect on the water services sector by improving water management techniques and resource efficiency in the region of operations. A corporate environmental review was undertaken to assess the adequacy of Aqualia’s environmental, health and safety and labour policies, management systems and acquisition due diligence procedures. Since the investments to be financed with the Bank's proceeds and their environmental impacts are currently unknown, ANE has a adopted environmental procedures mirroring the environmental appraisal and due diligence requirements of the Bank and apply these to its future investments and acquisitions, in accordance with the principles of delegated responsibility. None. Mark Muller Aguirre Tel: +34 917036226 Fax: +34 917036365 e-mail: MMullera@fcc.es