Project Description
Loan of up to EUR 14.5 million to Compania de Apa Olt (“CAO”), the regional
water operator in OltCounty and neighbouring localities in Romania.
The proceeds of the loan will be used to co-finance, alongside EU Cohesion Funds, an extension and modernisation of the company’s water and wastewater infrastructure and services. The EU investment grants are being made available under the EU Large Infrastructure Operational Programme approved in 2019.
Project Objectives
The project will enable Compania de Apa Olt (“CAO”) to (i) increase compliance with Directive no.i98/83/EC on drinking water quality while increasing its service coverage in communities with more than 50 inhabitants; (ii) increase compliance with Directive no.i91/271/EEC on wastewater collection and treatment by providing wastewater collection and compliant treatment of wastewaterin agglomerations with over 2,000 p.e.
Transition Impact
ETI 60
The project’s transition impact is aligned to the original proposal and it targets “Green” and “Resilient” qualities through:
- The improvement of water supply and wastewater treatment services, targeting compliance with EU standards, and extension of CAO’s coverage.
- The Bank’s support and best practices that will be used to review and improve water sector tariff policy formulation and asset management.
Client Information
COMPANIA DE APA OLT SA
0349990
Compania De Apa OLT (caolt.ro)
Str Artileriei nr 2, CP 23007, Slatina, Olt
EBRD Finance Summary
EUR 14,500,000.00
Total Project Cost
EUR 241,491,807.00
Additionality
The Bank is additional through:
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Financing structure: The Bank will provide necessary long-term financing that is not readily available from commercial banks.
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Standard-setting: helping projects and clients achieve higher standard: The EBRD will help the company achieve higher standards and increase compliance with EU regulations.
Environmental and Social Summary
Categorised B (2019 ESP). CAO has an established environmental policy and environmental management system in accordance with ISO 14001/2015 as part of its Integrated Quality and Environment Management System (IMS) that includes also ISO 45001 certification. There is a Quality and Environment Program in place, which includes environmental objectives and targets, and environmental performance is the subject of regular review by the management.
The Company’s Human Resources systems comply with national laws and EBRD’s PR 2, and are aligned with international standards and norms. CAO has a well-established HR system, with ample HR procedures, job descriptions and career perspectives, although it does not have a long-term HR strategy and plan for the future operations of the new infrastructure built under the project. The Company actively works towards creating an inclusive and equitable work environment, and sufficient measures are taken to prevent and address any form of discrimination. CAO covers a large geographical area, with staff in different locations, and the company conducts monitoring to ensure that its regional operational centres comply with labour laws and CAO’s HR procedures and standards.
The environmental and social appraisal conducted by independent consultants demonstrated that the environmental and social impacts of the proposed upgrading and expanding water supply and wastewater systems will be mainly of limited duration and extent and can be mitigated through standard methods and good construction practices. Permitting under the EIA Directive transposed into national legislation has been finalized for this investment. There are a number of works within the vicinity or inside a number of 3 NATURA 2000 sites (ROSPA 0106 Valea Oltului Inferior, ROSCI 0376 Raul Olt Intre Maruntei Si Turnu Magurele, ROSCI 0386 Raul Vedea). Out of these, only one site is Birds Importance Area (“SPA”) in Valea Oltului Inferior, the rest being Site of Community Importance (“SCI”). The proposed works consists in drillings and extension of water supply and sewage pipelines. Based on the assessment performed by CAO’s consultants in the Environmental permitting process to this stage, namely the Appropriate Assessment of the investment as well as the option analysis considered in the Feasibility Study, no negative impact is expected after the completion of works. Overall, the project is assessed to have a positive impact on the Natura 2000 sites through the reduction of unplanned wastewater discharges into aquatic ecosystems. However, measures for the protection of the Natura 2000 sites are to be included in the Environmental Management Plan (“EMP”) and CAO will ensure that biodiversity expertise is in place to supervise works in the immediate proximity of all Natura 2000 areas.
There will not be any involuntary resettlement of formal settlements, expropriation/acquisition of private land, or any known use of currently occupied land related to project activities. All land proposed for the investment project is public land. In some cases, temporary access to private land for rehabilitation and extension of the water and wastewater pipelines will be needed. Any temporary use of land and possible economic displacements that may result from the project will be carried out in accordance with the national requirements and EBRD’s PR 5.
The consultants have drafted a Stakeholder Engagement Plan (“SEP”) and Environmental and Social Action Plan (“ESAP”), which was agreed with the client. The ESAP, among others includes: updating of E&S management system plans and procedures; development and implementation of construction E&S management plans; ensuring biodiversity expertise is in place to supervise works in the immediate proximity of all Natura 2000 areas; measures for any potential temporary use of land and possible economic displacements; development of chance find procedure; update and implementation of the Stakeholder Engagement Plan.The Environmental and Social Department (“ESD”) of the EBRD will monitor the Project and implementation of the SEP and ESAP through annual reports provided by the client.
Technical Cooperation and Grant Financing
The project benefited from pre-signing due diligence assignments (technical, financial, environmental and operational) included under SWIFT Framework. The amount of these assignments was EUR 105,000 and has been financed by the EBRD Shareholders Special Fund (“SSF“).
Company Contact Information
[email protected]
0349990
https://caolt.ro/
Str Artileriei nr 2, CP 23007, Slatina, Olt
Implementation summary
PSD last updated
12 Oct 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: [email protected]
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: [email protected]
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email [email protected] to get guidance and more information on IPAM and how to submit a request.
