In Four Years, ApaVital To Invest 136 Mio EUR

Doru Mocanu,

IaŞi

Iasi-based water company ApaVital S.A. has announced a four-year investment plan worth 136 million EUR to be financed by the E.U. The investment master plan includes the modernization of the water distribution and sewerage systems in the area serviced by ApaVital. The first specific applications for financing could be submitted in August, according to the estimates made by the consultants ILF Consultings and HidroIngineure. Until such time, the ApaVital specialists and the consultants need to finalize feasibility and impact studies for the investments stipulated in the master plan.

"The feasibility studies are nearly finalized. We are currently working intensely on the impact studies. We have also made a list of priority projects for the 136 million EUR budget. We will have a total of 10-15 projects for the entire amount to be drawn from the European Union. We are already making the tender books for some of the projects and will organize the actual tenders soon thereafter. We are hoping to start the first procedures this Autumn," said ApaVital CEO Ion Toma.

• 70 Million EUR for the Iasi Municipality

The 136 million EUR will be invested in the modernization and expansion of the water distribution and sewerage systems in five urban communities in Iasi County: Iasi, Pascani, Harlau, Targu Frumos and Podu Iloaiei. The city of Iasi has been earmarked 70 million EUR. As the entire budget is planned to be spent in four years, until 2013, the organization effort will be quite substantial.

ApaVital"s predecessor, the former Iasi County Water & Sewerage Company, invested approximately 120 million EUR over 13 years, including the modernization of the Dancu Water Treatment Facility, which was financed with a 25 million Deutsche Mark loan from Mannesman, plus a matching budget allocation from the Government of Romania. Later on, the investment projects of the former Iasi County Water & Sewerage Company received 15.6 million USD from the European Bank for Reconstruction and Development and the Government of Romania, as well as 51.7 million EUR from ISPA.

"The money from the EBRD and the Government was invested in eight large projects designed to modernize the sewerage systems, the pumping stations and the facility in Timisesti. We also received over 51 million EUR from ISPA, of which we spent 32 million EUR to modernize the Water Treatment Facility, 13 million EUR for the Chirita Facility, 5.5 million EUR for the pumping stations and the rest for assistance. This time, we will have much more money in our budget and we need to spend it all until 2013, Ion Toma added.

ApaVital S.A. is currently distributing water to nearly all communities in Iasi County and some of the communities in the neighbouring Neamt County. The company is controlled by the Iasi County Council and the local councils of the communities it services.