R2CF Timis

repaying

Translated version of this PSD: Romanian The EBRD is considering providing a loan of up to €15.51 million to S.C. Aquatim S.A. (the “Company”) to co-finance the rehabilitation of water and wastewater infrastructure in Timis county. The financing is a sub-project under the Bank’s €200 million Framework for Romania EU Cohesion Fund Co-Financing for regionalised water companies (the “Framework”). The EBRD loan is part of a €118.9 regional investment programme that will include significant grant funding from the European Union, the government of Romania and the local governments under Romania’s Cohesion Fund Programme. The investment will enable the Company to extend and rehabilitate the water and wastewater infrastructure in nine smaller towns and 34 communes in line with EU directives. As a result, about 460,000 people (approximately 70 per cent of the total population of Timis County) will benefit from improved water and wastewater services. The sub-project will support environmental improvements as well as the continued regionalisation of water and waste water services in Timis County, which will result in efficiency gains as well as the transfer of commercial and managerial skills to less-developed localities in the county. The Company will participate in a benchmarking programme alongside other borrowers under the Framework. S.C. Aquatim S.A. has been a Bank client since 1995 under the Municipal Utilities Development Programme I (“MUDP”) and has already undergone significant reforms since then. The Company reorganised in 2007 into a regional water company, and will now expand its services to approximately 70 per cent of Timis County, including the City of Timisoara. €15.51 million to S.C. Aquatim S.A. €118.9 million for the Timis Sub-Project. The Project has been categorised B in accordance with the EBRD Environmental and Social Policy. The potential E&S impacts of construction/rehabilitation of wastewater treatment plants and extension and rehabilitation of water distribution and sewerage networks are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. The project is expected to result in significant community health and environmental benefits. A gap analysis will be carried out of the existing studies prepared for EU Cohesion Funds to assess whether any additional investigations are needed for assessing the project's compliance with the EBRD PRs. In addition, an E&S review of the Companies' existing operations will be carried out to assess the current performance of the Company against relevant PRs. The Company will establish and implement a monitoring programme to measure compliance with environmental and social requirements, as well as implementation of the ESAP and the Contractor monitoring provisions. EBRD will monitor the project through reviewing the Company’s annual environmental and social reports and monitoring visits, as appropriate. This PSD will be updated when the results of due diligence become available. €970,000 TC funding was approved for the overall Framework, from which this sub-project will benefit, including: