July 28, 2009 -- The European Investment Bank (EIB) is lending CZK 3 billion (some EUR 107 million) to finance the improvement and expansion of drinking water supply and the wastewater infrastructure in the Czech Republic.
The new loan, the third of a series of similar contributions, is a further example of the EIB's continuous support for this important sector, in particular with respect to smaller schemes. The wide experience gathered through the previous projects will be beneficial to the new one. It will reinforce further the quality of the cooperation between the Bank and the Ministry of Agriculture.
The Czech Ministry of Agriculture is the project promoter while municipalities, their associations and joint stock companies with majority municipal ownership are the final beneficiaries of the loan. The schemes proposed for financing will be selected and approved by a committee composed of representatives of the Czech Ministries of Agriculture and Environment.
The EIB funds, provided on favorable terms at a time of difficult market conditions, will co-finance local investments needed to fulfill the Czech Republic's commitment to implementing EU legislation in the water sector. The individual investments will help to enhance the citizens' quality of life and they involve the upgrading, improvement and expansion of the water supply and wastewater system to meet the demands of more than 110,000 citizens living in a large number of small and medium-sized municipalities all over the country.
The EIB, the European Union's long-term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States.
Since 1990 the EIB's lending in the Czech Republic has reached some EUR 10.8 billion. The current loan is a continuation of the successful cooperation between the EIB and the Czech Ministry of Agriculture, which is responsible for implementing six loans signed previously by the Czech Republic in the water sector totaling EUR 1.2 billion.
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