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Reference: 20220047
Release date: 22 July 2022

Promoter – Financial Intermediary

AQUAFIN NV

Location

Description

The project comprises the construction of sewage collectors, storm water overflow systems and small and medium-sized wastewater treatment plants, the upgrade of existing wastewater treatment plants for tertiary treatment in the Flemish Region, as well as investments in assets that are needed to optimise the performance of the existing infrastructure (asset management). The implementation of the project is foreseen during 2023-2026 (included).

Additionality and Impact

The project comprises investments in sewage systems and wastewater treatment plants across the Flemish region from 2023 to 2026, which shall contribute to compliance with European and Flemish environmental standards and improve service efficiency. The promoter has a strong focus on climate change considerations, which underpin the rationale of the proposed investments. Wastewater collection and treatment projects furthermore generate positive externalities, including avoided public health costs, environmental benefits of improved water quality and reduced greenhouse gas emissions, as well as benefits from enabling socio-economic development, including society-wide benefits from being better able to mitigate and adapt to the adverse impacts of climate change. Overall, these environmental, climate and social benefits would not be achieved to the same extent without public intervention. The Bank is able to provide long-term financing, aligning debt maturities to the economic life of investments, and thereby contributes to a stable funding base. Furthermore, availability and grace periods of the Bank's financing arrangements provide significant operational flexibility. The capital-intensive nature of Aquafin's operations requires sizeable debt financing, to which the Bank contributes notably, alongside commercial banks and capital markets.

Objectives

This project envisages compliance with European and Flemish environmental standards whilst improving service efficiency. The investments in wastewater projects furthermore generate positive externalities, in the form of environmental and public health benefits, through avoided pollution of surface and groundwater.

Sector(s)

  • Water, sewerage - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

EUR 200 million

Total cost (Approximate amount)

EUR 415 million

Environmental aspects

Final beneficiary will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiary will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 27/04/2023

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

Belgium Water, sewerage