ESIF/EBRD Water Sector Financing FW (EBRD-49252)

Countries
  • Bulgaria
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 18, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
The Fund Manager of Financial Instruments in Bulgaria (FMFIB)
The holder of the loan, grant, or other investment.
Sectors
  • Climate and Environment
  • Finance
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 133.26 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 115 million
Converted using 2018-07-19 exchange rate.
Project Cost (USD)
$ 267.26 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 230,61 million
Converted using 2018-07-19 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jan 31, 2019

Disclosed by Bank Jun 20, 2018


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Project Description

The Fund Manager of Financial Instruments in Bulgaria (FMFIB) and the EBRD are considering to structure and implement a framework for financing Regional Water Operators (RWOs) in Bulgaria, which will combine financial resources from the European Structural and Investment Funds (ESIF) with the EBRD's own capital resources as well as funds mobilised from other commercial sources (the framework).

The objective of the framework is to address the existing funding gap in the water and wastewater sector in Bulgaria and thus support the country in achieving compliance with the EU's urban wastewater and drinking water directives. The investments are expected result in improved service quality and provide access to sewage and wastewater treatment service to an increased number of Bulgarian households.

The individual sub-projects will benefit from the following technical cooperation:

  • Financial and operational improvement programme which will be extended to all RWOs eligible to receive financing under the framework.
  • EU state aid expertise to ensure that the EU state aid rules are complied with during the implementation of the framework.
  • Lenders' monitor for the benefit of the Bank will monitor the programme's implementation.

In addition, the framework will benefit from an update of the ex-ante assessment for the use of financial instruments in the water and wastewater sector in Bulgaria.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)

The counterpart of the EBRD in such framework is FMFIB, a Bulgarian state-owned entity, which is responsible for channeling the ESI Funds from the Managing Authority to the EBRD. Up to EUR 115 million of EBRD finance with an indicative split between loans and guarantee of EUR 92 million and EUR 23 million, respectively.

The total estimated cost of the investment projects to be financed under the framework is up to EUR 1.2 billion. The majority of the financing will be provided in the form of direct investment grants to the RWOS provided by the Managing Authority of Operational Programme Environment 2014-2020. The EBRD will co-finance the project costs through the framework.

Private Actors

FMFIB, a Bulgarian state-owned entity, which is responsible for channelling the ESI Funds from the Managing Authority to the EBRD.

Contact Information

Company Contact Information

Fund Manager for Financial Instruments in Bulgaria

Email: office@fmfib.bg

Phone number: +35928014050/ +35928014050

Website: www.fmfib.bg

Address: 30-32 Totleben Boulevard, 1606 Sofia, Bulgaria

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report. Text of the PIP

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.