EBRD, EU, Bulgaria to Invest up to 230 Mln Euro in National Water Sector
A total of 230 million euro ($265 million) provided by the European Bank for Reconstruction and Development, the European Structural and Investment Funds and Bulgaria's budget will be invested in improvements in water supply, sewage and wastewater treatment in the country, the EBRD said on Thursday. The Fund Manager of Financial Instruments in Bulgaria (FMFIB) has selected the EBRD to manage up to 115 million euro financing allocated for water sector improvements, the bank said in a press release. In addition the EBRD will contribute up to another 115 million euro of its own funds, it said following the signing of a new cooperation agreement with FMFIB. The funds will be extended in the form of long-term loans to water and sewerage operators and guarantees to commercial banks providing loans to these companies. The maximum loan term is 15 years, with up to three years grace period. The loans will be aimed at supporting the efforts of regional water operators to increase their efficiency and financial sustainability, rehabilitate obsolete infrastructure and reduce water losses.