EIB Loan for Water Management throughout Portugal

To serve half of the some 10 million Portuguese Population, the European Investment Bank has approved a loan of EUR 925 million over 25 years to Águas de Portugal (AdP) for investments in eleven regional public utilities. A first tranche loan contract of EUR 300 million was signed today in Lisbon. The loan contract was signed by Carlos Costa, EIB Vice President, and on behalf of AdP by Pedro Serra, President, and by Justino Carlos, Board Director. The investments throughout Portugal cover bulk water supply and wastewater collection and treatment to meet the goals set by environmental EU legislation and in keeping with the national water plan covered by the Community Support Framework. Lower risks to public health will result from improving the quality of groundwater, rivers and coastal areas. In addition to rapidly decreasing the use of sceptic tanks as sewage disposal facilities, the investments will enhance recreational surface waters and lower the supply costs of potable water. Overcoming water quality shortcomings and water supply interruptions will contribute towards strengthening economic activity, notably tourism, and will help to reduce work related health hazards. The implementation strategy foresees a combination of public and private sector services that will foster the modernisation of the Portuguese water industry by extending know-how and efficient water and sanitation operating systems. All schemes are scheduled to be in operation by end 2009.