EIB Green Loan Boosts Brno’s Environmental Renaissance: Modernizing Wastewater Treatment

EIB Green Loan Boosts Brno’s Environmental Renaissance: Modernizing Wastewater Treatment

(IN BRIEF) The European Investment Bank (EIB) has recently inked a CZK 1.3 billion loan agreement with Brněnské vodárny a kanalizace (BVK), the municipal water and wastewater company in Brno, Czech Republic, aiming to revamp the city’s wastewater treatment infrastructure. The focus lies on upgrading the sewage sludge treatment facility at BVK’s Modřice wastewater plant, with the objective of ameliorating environmental protection and public services in the region. The initiative is poised to bolster sustainability by reducing the carbon footprint of treatment processes and enhancing the efficiency of sludge management, subsequently fostering economic and social benefits while aligning with EU wastewater laws. This endeavor underscores the significance of EU-backed investments in bolstering environmental resilience and public health.

(PRESS RELEASE) LUXEMBOURG, 28-May-2024— /EuropaWire/ — The European Investment Bank (EIB) has signed a CZK 1.3 billion (about €53.2 million) loan agreement with Brněnské vodárny a kanalizace (BVK), the municipal water and wastewater company in the Czech city of Brno. The operation will upgrade the sewage sludge treatment facility of BVK’s Modřice wastewater plant, thus further improving environmental protection and public services in Czechia’s second biggest city.

The project will help BVK increase the amount of dried sludge produced, making it easier, more cost-effective and safer to transport and dispose of or repurpose. It will also reduce the overall volume of treated sludge, enhance the energy efficiency of the sludge treatment process, and improve the quality of the treated wastewater.

“The Czech Republic has made significant progress in water and wastewater management since joining the European Union 20 years ago,” said EIB Vice-President Kyriacos Kakouris, who signed the loan on the sidelines of the CEE Sustainable Finance Summit in Prague. “Supporting investments in the water sector is an EIB priority. It helps to use our natural resources more efficiently and is essential for protecting public health and for reducing our carbon footprint. Today’s loan is further proof that EU support, be it financial or technical, matters for people and the environment they are living in.”

BVK Board Chair Daniel Struž said: “The sludge management project of the Brno Modřice plant is crucial to BVK’s long-term strategy of providing top-quality water and wastewater services. We very much appreciate the EIB’s trust and co-financing, which confirms we are on the right track with renewing and developing strategic water infrastructure. We hope to continue this cooperation to finance future projects aligned with global environmental goals.”

BVK is one of the biggest water companies in the country. It provides water services to Brno city and several nearby towns and villages, home to a total of 415 000 people. Replacing the outdated sewage sludge facility will yield economic and social benefits. For instance, it will almost halve electricity consumption during the treatment process, substantially reducing greenhouse gas emissions. It will also improve the environmental balance and public health and enable BVK to comply with EU wastewater laws.

Finally, the project also supports an economically weaker region, as defined by EU cohesion policy. In Czechia, more than three-quarters of EIB financing in 2023 went to raising the living standards in such regions. The project received support from EIB advisory services on the technical aspects and the tender process.

Background information

In Czechia, about 95% of the population has access to clean water and 86% are connected to wastewater management systems. The country also performs well in terms of efficiency and conservation. It has relatively low water losses due to damaged pipes and other infrastructure, which account for about 15% of the total water supply. In comparison to other EU countries, Czechia has a lower per capita water consumption rate. On average, each person uses about 90 litres of water per day, while the EU average is 120 litres.

EIB Group

The European Investment Bank Group consists of the European Investment Bank (EIB) and the European Investment Fund (EIF). The EIB is the long-term lending institution of the European Union. It finances sound investment contributing to EU policy goals and works closely with other EU institutions to advance shared policy priorities, like equitable growth and a just transition to climate neutrality.

All EIB projects must meet strict environmental, social and governance (ESG) criteria and be aligned with the goals of the Paris Climate Agreement. The loan for BVK is an example of an operation that, by adhering to ESG standards, significantly contributes to the green transition. It follows another project with the city of Brno which supported sustainable biomass heating in 2023. Overall, EIB Group financing in Czechia amounted to a total of €1.88 billion last year, of which €188 million was provided through the EIF. Total EIB Group support over the past three decades now stands at €29.4 billion.

Brněnské vodárny a kanalizace

Brněnské vodárny a kanalizace, a.s. (BVK) has provided water services to the city of Brno for over 150 years. While the company was founded in its current form in 1992, it builds on the work of its predecessors dating back to 1872 when the Pisárky water treatment plant first began operations.

BVK’s primary activities involve operating the public water supply and sewerage systems for Brno and the surrounding area. The company is recognised as one of the most efficient water management organisations in the Czech Republic, as demonstrated by its low water loss rates, effective wastewater treatment, use of advanced diagnostic methods, high level of accredited activities, and adoption of innovative construction techniques.

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Antonie Kerwien
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SOURCE: European Investment Bank