| Project Detail |
Project Description Provision of a long-term senior loan to Zagrebacke otpadne vode d.o.o., concessionaire of a local wastewater treatment plant, for the upgrade of the existing facility to tertiary treatment on order to meet EU/national environmental standards. Total project costs are estimated at EUR 60 million, of which EBRD is envisaged to finance up to EUR 20 million and a co-financier up to EUR 40 million. Zagrebacke otpadne vode d.o.o. is an existing EBRD client. The first loan to the borrower was provided in 2001. Project Objectives The EBRD loan will support the upgrading of the existing wastewater treatment plant to tertiary treatment to meet EU/national environmental standards. The project is a follow-on operation to the Banks previous projects for the construction and capacity increase of Zagrebs central waste water treatment plant. Transition Impact The project will be implemented under the Green Economy Transition (GET) direct-track approach as it qualifies 100% as a green project. The project includes investments to upgrade the existing wastewater treatment facilities to include tertiary treatment which will result with significant reduction in nutrients (Nitrogen &Phosphorus) returned to the natural environment to meet the EU/National environmental standards. Improved wastewater treatment is expected to result in significant environmental benefits in and around the area. Furthermore, it is expected that the Project will lead to improved energy efficiency of the Borrowers operations as biological technology for wastewater treatment will also provide sludge fermentation for the purpose of biogas generation, as well as a combined heat and power station for the generation of electricity in order to minimize energy costs and residual materials. Risk to transition impact arises from the technical implementation risks related to the construction of facilities for the tertiary treatment of wastewater which is crucial for the green transition quality (GET eligibility). This risk is significantly mitigated by the EU/national legislation which requires compliance with the directive on urban wastewater treatment starting from 2021 which makes the Project a priority investment for the City of Zagreb. |
