EIB makes €300 million loan to strengthen Czech Republic water management services
- June 24, 2020
- Category: Investment and Finance, Europe
The European Investment Bank (EIB) is lending CZK 8 billion (around €300 million) to finance a vast set of measures put in place by the Czech Ministry of Agriculture to strengthen the country’s water management services, including flood protection and storm management.
The loan to finance flood prevention, storm water retention, water supply and sanitation measures across the country – around 110,000 people are set to benefit from better water services.
The implementation of the project will result in significant benefits for the Czech Republic. It will provide protection against floods to an additional 47,000 people and improve the water supply of a total population of 24,000. In addition, it will increase wastewater collection and treatment for a total of 39,000 people and create an additional 2 million m3 of storm water storage capacity.
EIB Vice-President Lilyana Pavlova commented:
“The EU climate bank is taking action to preserve natural resources and protect the environment for future generations. Thanks to these measures, the EU bank will help to improve living conditions for some 110 000 people in the Czech Republic, where approximately 25% of the population live in flood-prone zones facing disastrous floods on average every 10-15 years.
“This is a programme with a strong climate action focus, which will allow for the provision of better water services and help the country to meet its commitments stemming from national and EU environmental legislation.”
Czech Minister of Agriculture Miroslav Toman added:
“We are facing a turbulent period of climate change, which we perceive – from the point of view of the Czech Republic – above all as a considerable decrease in water resources.
As part of the measures under construction, our priority is to ensure a stable supply of drinking water for the citizens of the Czech Republic and to build new and repair existing ponds in municipalities. However, we must not forget the opposite extreme and protect the population from floods. EIB funding will help us implement many important measures to combat climate change in the coming years.”
Examples of projects supported by the loan include:
Water supply and sewerage project: Jelence Waterworks
The investment involves the construction of a 1.6 km-long water line, one well drill and a reservoir of 40 m3 with water treatment technology. Upon completion, a high quality drinking water supply will be provided to local residents.
Flood prevention project: Třebovice, Třebovka – Česká Třebová, flow modification – construction part
The aim of the investment is to provide flood protection along the section of the Třebovka watercourse over 12 km for the municipalities of Třebovice and Rybník and the city of Česká Třebová. This operation will increase the level of flood protection from the current two-year floods to 100-year floods.
Project: Construction of a municipal pond in Chotěšice (Central Bohemia)
Construction of a 4.7 ha water reservoir with a total volume of 66 000 m3. The project will improve the local water regime, stabilise the level of local groundwater and strengthen local eco-stabilisation functions. The water reservoir will also have flood protection impacts with a retention volume of 24,000 m3.
The EIB said the current loan is a continuation of “very fruitful cooperation between the EIB and the Czech Ministry of Agriculture.” It is the sixth loan provided by the EU bank to this ministry since 1999, for a total amount of €1.3 billion.