Oradea Water and Wastewater Extension

complete

The proposed project entails the construction of i) 108 km of new water supply pipework; ii)140 km of new sewers iii) 99 km of new rainwater collectors and iv) secondary stage pumping system to ensure sufficient pressure to supply water in the network extension. The proposed project addresses a key infrastructure need in Oradea and is going to reduce pollution in the Crisul Repede River at the boundary between Hungary and Romania. In Oradea, there are 85.5 km of streets where approximately 26,000 residents are neither connected to the water nor sewerage system. In these areas, wastewater is either discharged into road ditches, resulting in the contamination of ground water, or directly into the river. Transition goals of the change to the operation include (i) As a result of this Project, a previously unserved area of Oradea, including communities adjacent to the town will receive water and wastewater services. This expansion of the Company’s services will be the first step into its reorganisation as a regional operator. To support the Company, the project will include a technical cooperation project for regionalisation. (ii) Private Sector Participation: As a part of the Project private sector options to determine whether it would enable the Company to improve service delivery. As such, the technical cooperation will also include an option study on the various forms of private sector participation. (iii) Framework for markets: The Project will promote cost recovery principles at the local level by connection 26,000 residents to the water and wastewater network. (iv) Demonstration Effect: EBRD’s willingness to lend on a non recourse basis will contribute to the development of the structures available for the Romanian municipal customers. EBRD is well placed to asses and structure such transaction given its experience with municipal loans in the country. S.C. Compania De Apă Oradea S.A. Senior loan of up to EUR 12 million to the Company. Up to EUR 48.8 million. The Project has been screened B/0 according to the EBRD’s Environmental Policy, requiring an environmental analysis of the proposed development programme to ensure that it is structured to meet Romanian law and EU environmental standards. The Analysis will also assess environmental benefits and impacts of the project and make recommendations for mitigation measures, if required, which will be incorporated in an Environmental Action Plan (EAP). The project will improve quality and efficiency of sewerage collection and water supply infrastructure and services. The operation would also prevent ground water pollution resulting from discharging untreated waste water to the ground and to improve the water and environmental quality in Cirsule Repede River which flows directly to Hungary. The adverse impacts of the project are expected to be limited to construction-related issues. As the construction works are likely to be significant (108 km of new water pipes; 140 km of new sewers; and 99 km of new rainwater collectors), they may pose significant disruption to the City’s day to day operations. These impacts will be short term in nature and can be easily mitigated or prevented by good construction practice and appropriate traffic management and notification to the public. The Company will be required to develop and communicate a Public Grievance Procedure, particularly during the construction period. Consultancy services of up to EUR 200,000 to the Company to assist it (i) in converting into a regional operator; and (ii) option study to explore private sector participation (PSP) options for the provision of water and wastewater services.