Split Wastewater Project

cancelled

Translated version of this PSD: Croatian The EBRD is considering financing the investments of the final phase of the Kastela Bay Environmental Protection Project (“ECO Project”). The ECO project in Kastela Bay on the Adriatic cost is a regional project incorporating the cities of Split, Solin, Kastela and Trogir. The remaining investments in the ECO Project for extension and upgrades of wastewater collection network in Kastela Bay are necessary in order to achieve the full optimisation of the newly built system and to be compliant with the EU directives. The transition impact of the proposed transaction derives from: Vodovod i kanalizacija d.o.o., (“Company”, ViK), the municipal water and wastewater company providing services in area of the City of Split and surrounding municipalities. The Company is majority owned by the City of Split (57%) and surrounding 10 smaller municipalities (43%). A senior loan of EUR 25.0 million to the Company. Up to EUR 117 million. Categorised B in accordance with the EBRD's 2008 Environmental and Social Policy. The project is expected to provide substantial environmental and public health benefits compared to the existing situation by significantly increasing the sewage networks coverage in the Split area to reduce pollution of the Split-Kastela Bay. The potential adverse future environmental and/or social impacts are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. The environmental and social due diligence is on-going. It will review the existing facilities, operations and management systems in place, and assess the potential future environmental and social issues, impacts and benefits associated with the proposed priority investment programme. It will also assess the sufficiency of WWTP capacity to treat the additional load resulting from project implementation, and the ability of the project to bring the existing company facilities and operations, including water, wastewater and sludge management/disposal into compliance with national and EU environmental requirements and EBRD Performance Requirements. An Environmental and Social Action Plan (ESAP will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders. This PSD will be updated when the results of due diligence are known. A total of up to EUR 300,000 of TC funds will support evaluation of the project and assist in project implementation. Pre-signing stage: Post-signing stage: