The European Investment Bank (EIB) announces a loan of EUR 20 million (44 million Netherlands guilders) (1) to the water company Waterleidingmaatschappij Drenthe N.V. (WMD) for the modernisation of its production and distribution systems. The publicly owned WMD is responsible for the production and distribution of drinking water in the Province of Drenthe (in the north of the country). The investment scheme being co-financed by the EIB will improve the Province's natural environment as well as the quality of water supply for the local population (half a million) and industrial customers.
A key objective of the scheme is to reduce the extraction of ground water to sustainable levels. Partial relocation of production from ecologically sensitive areas to environmentally more robust zones will help diminish the seasonal lowering of ground water tables, that negatively affect natural - and farming - areas. Draining of aquifers is of particular concern to the Dutch national and regional authorities. A large part of the EIB financed WMD investment scheme has been accorded "green status" in conformity with Dutch legislation, a seal of quality for projects with a considerable positive impact on the environment.
The works being financed will also enhance the quality of water by reducing calcium content, renovating the pipe network, improving the reliability of drinking water supplies, and developing and applying modern technologies in waste water recycling. The investment will furthermore enhance economic activity in less-developed regions as two thirds of the Province are designated as assisted areas. As a consequence, the overall scheme is consistent with the EIB objectives to improve the natural environment and citizens' quality of life, as well as promoting regional development.
Other water supply schemes supported by the EIB in the Netherlands include projects in the Province of North Holland in 1998 and in the Province of Limburg in 1999. The Bank has lent EUR 31.5 billion for natural and urban environmental projects within the European Union over the past five years (1995-1999). Total EIB lending provided in the Netherlands in the same period amounted to over EUR 2.2 billion.
The EIB, the European Union's financing institution, supports capital investment projects contributing towards one or more of the following EU policy objectives: regional development; transport, telecommunications and Trans-European Networks (TENs); a secure energy supply base; improvement of the natural and urban environment; development of infrastructure in the health and education sectors; enhancement of the competitiveness and integration of European industry; investment by SMEs; venture capital finance. Outside the EU, the Bank participates in implementing the EU's development policy in accordance with the terms of the various agreements which the Union has concluded with some 130 countries. Owned by the EU Member States, the EIB raises its funds on the capital markets ("AAA" issuer).
(1) EUR 1 = NLG 2.20