London - The EBRD is supporting the modernisation of Moldova's water system with a €10 million sovereign loan to co-finance a water utilities development programme, the first water project in the country focusing on the regionalisation of water services and the creation of regional water companies. Currently only 45 per cent of the population in Moldova has access to quality water, with shallow wells representing the key water source in rural areas.

The proceeds of the EBRD loan will be on-lent to the water companies in six reform-minded localities – Floresti, Soroca, Hancesti, Orhei, Leova and Ceadar-Lunga – to finance the upgrade and the extension of the water and wastewater systems in these towns. The project will support the participating companies in expanding their operations into neighbouring localities and help them become viable regional operators. In addition the participating utilities will expand the water supply systems and wastewater collection to neighbouring villages.

The programme will facilitate the access to safe drinking water in approximately 40 towns and villages, reduce pollution and contribute to the improvement of public health.

It will also support further the decentralisation of municipal infrastructure provision in Moldova, providing the utilities in small and medium-sized localities with access to financing and introducing a contractual relationship between the local authorities and water utilities through Service Agreements.

With a total cost of €30 million, the programme is co-financed by a €10 million loan from the European Investment Bank and a €10 million grant from the EU’s Neighbourhood Investment Facility (NIF). The EBRD is providing an additional €2 million in technical assistance grants to assist the project’s implementation.

“Supporting public infrastructure projects, particularly in the water sector outside the capital Chisinau is one of the EBRD’s priorities in Moldova. This important programme will bring significant service improvements and health benefits to the population in the suburban regions and will help water companies become efficient regional business operations”, Thomas Maier, EBRD Managing Director for Infrastructure, explains.

“The current state of the water supply and wastewater infrastructure in Moldova is extremely precarious and the Moldovan government has asked international lenders to help address the problem by financing modernisation of water services”, says Veaceslav Negruta, Moldovan Minister of Finance. “We are highly appreciative of the support and assistance provided by the EBRD throughout its activity in Moldova for the implementation of strategic projects. We hope to continue our cooperation with the Bank to ensure Moldova’s sustainable development”, he added.

To date the EBRD has invested over €400 million in Moldova across various sectors of the country’s economy, attracting additional investment of approximately €330 million.

Quelle: European Bank of Reconstruction and Development (EBRD)

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