Hidromorava-Gjilan Wastewater Development Project

cancelled

The EBRD is considering providing a sovereign loan of up to EUR 12 million in two tranches to the Kosovo for on-lending to the regional water company Hidromorava (“RWC HM” or the “Company”): The loan will address critical wastewater treatment needs in the Municipality of Gjilan and will benefit an estimated 90,000 inhabitants. The transition impact of the proposed transaction will be achieved through: RWC HM is a joint stock company, wholly owned by the Kosovo. The Company manages and operates the water and wastewater systems in three municipalities (Gjilan, Kamenica and Vitina) serving a total of 19,110 households. Its water division produces 7.6 million m3 of drinking water per year and collects 2.7 million m3 of wastewater. A sovereign loan of up to EUR 12.0 million to be on-lent to RWC HM. EUR 23.1 million including VAT. Tranche 2 is likely to be co-financed by an investment grant from an international donor. The project has been categorised B. The project will help address current public health risks arising from poor sanitation and untreated wastewater discharges. The potential adverse future environmental and/or social impacts of rehabilitation and extension of the wastewater collection network and construction of a new 90,000 p.e. capacity wastewater treatment plant can be readily identified and addressed through adequate mitigation measures. The existing environmental and social assessment reports are currently under review. The need for further due diligence will be decided based on this review. This PSD will be updated once the E&S due diligence is completed to reflect the outcomes. The project will benefit from the following post-signing TC: