The EBRD finance is being provided to Zagrebacki Holding, a multi-purpose municipal service company wholly-owned by the City of Zagreb, under the EBRD’s A/B loan structure. The A-Loan of €30 million will be provided by the EBRD and the B-Loan of the same amount will be syndicated.
In addition, the Dutch government has provided €495,000 in technical cooperation. A total of €195,000 was used to assist the company prepare an investment programme in the water and sewer sector. The remaining grant funds will be used to assist the company with the development of a programme focusing on commercialisation and organisational improvements of Zagreb Holding.
The City of Zagreb and the EBRD have been working together for the last 10 years on infrastructure programmes, including Zagreb’s waste water treatment plant and the city’s solid waste management programme.
The EBRD funding will be used to finance the expansion of the sewer network and to upgrade and modernise the water supply system. These projects are valued at an estimated €100 million. The project will help connect new residential developments to the sewer system, allowing the entire population of the City to be provided with water and sewer networks. In addition, the existing water supply network will be improved which will result in significant reductions of water losses.
Signing the agreement, EBRD’s Director for Croatia, Charlotte Ruhe, said that this loan will help modernise the City’s water network and support Zagrebacki Holding in improving the quality and cost of its services to the people of Zagreb.
The CEO of Zagreb Holding, Mr Slobodan Ljubicic said this signing is the continuation of excellent cooperation with EBRD on major environmental infrastructure programmes in the City of Zagreb. Zagrebacki Holding provides a wide range of services to the City and its population, including public transport, water supply and sewage, gas distribution, road maintenance and other services. The company in its current form was created in 2005 by merger of a number of municipally-owned companies.
So far, the EBRD has invested more than €1.9 billion in Croatia in 83 projects across all sectors of the economy, with a concentration on the financial sector and on infrastructure. In addition, the Bank helped mobilise €3 billion from other sources.