First ever EIB support for Belarus – development of water infrastructure and private sector

The EU bank is providing EUR 84m to Minsk Vodokanal to finance the rehabilitation and modernisation of the capital city’s central wastewater treatment plant. 

The EIB funds will back the installation of new pre-treatment facilities, new aeration tanks for biological treatment, ultraviolet disinfection of the treated effluent and modern sludge treatment. The investments will have positive impacts on energy efficiency, environment and people’s daily life. This project will be co-financed with the European Bank for Reconstruction and Development (EBRD) and will also benefit from a grant of EUR 1m from the multi-donor funding instrument the Eastern Partnership Technical Assistance Trust Fund (EPTATF).

The EIB loans to small businesses, intermediated through Belagroprombank (BAPB) and Belarusbank (BBK), will facilitate investment projects and help to meet the working capital needs of private sector companies in Belarus. This will contribute to the strengthening of the private sector and economic diversification that is particularly important in Belarus, where large state-owned enterprises still dominate the national economy. The EU bank is joining forces with BBK and BAPB, two banks that have a profound knowledge of the Belarusian market and have substantial plans to expand their lending to smaller businesses. It is estimated that some 200 SMEs will benefit from this financing, which should help to sustain over 2,500 jobs. These loans are being provided in the framework of the EU4Business initiative targeted at smaller businesses in the Eastern Partnership countries.

EIB Vice-President Alexander Stubb commented: “Today is a significant day for the European Union and the Republic of Belarus: we are welcoming Belarus to the family of Eastern Partnership countries receiving support from the EU bank. Our operations are contributing to the country’s economic development, deepening the cooperation with the European Union and improving the living conditions of Belarusian citizens. The projects signed are good examples of this: they help to improve the environment and strengthen the competitiveness of the private sector companies that are the engine of sustainable growth and job creation.”

Head of EU Delegation in Belarus Andrea Wiktorin stated: “Today’s event is a significant development in the relations between the EU and Belarus. The EU has not only increased the overall amount of assistance, but also widened the spectrum of available instruments for joint cooperation. This concerns both policy action and sound investments into sustainable infrastructure and private sector development. Belarus will as of now benefit from European Investment Bank lending for the benefit of its citizens and the environment.”

Original source: EIB
Published on 20 November 2018