Government To Negotiate Loan For Water Supply, Sewerage Works

M.M.

The Government on Wednesday authorized the start of negotiations on a frame agreement for a 179 million EUR with the Council of Europe Development Bank in order to secure financing for building water distribution and sewerage networks in small communities.

"The Government has authorized the start of negotiations on the frame agreement for a 179 million EUR loan to be taken from the Council of Europe Development Bank in order to finance the second phase of the project . The project is part of a large programme initiated by the Ministry of Regional Development and Housing in 2007, which is designed to concurrently execute water supply and sewerage networks," said Government Spokesperson Ioana Muntean. According to her 75% of the water supply and sewerage networks in Romania require rehabilitation.

During the same meeting on Wednesday, the Government approved the agreement for a 3 million EUR loan from the German-based Credit Institute for Reconstruction. The funds will be used to rehabilitate buildings in the historical centre of the city of Timisoara. The project will also receive an additional 2 million EUR as non-reimbursable financial assistance. "An agreement of principle has been formalized with regards to taking a 3 million EUR loan and a 2 million EUR non-reimbursable financial assistance from the Credit Institute for Reconstruction from the Federal Republic of Germany in order to finance the rehabilitation of the historical areas of the city of Timisoara," Ioana Muntean added.