Split, April 16, 2008 – The `EKO Kastelanski zaljev` Project Implementation Agency, the Croatian Bank for Reconstruction and Development (CBRD), and the World Bank held today a joint press conference in Split to mark the successful completion of the Municipal Environmental Infrastructure Project and present the results and impact achieved during the course of the Project implementation. Project in Brief: The implementation of the Municipal Environmental Infrastructure Project started in 1998 with a three fold development objective. The aim was to: (i) reduce municipal wastewater pollutant discharges into the environmentally sensitive Kastela and Trogir bays in line with Croatian and European Union standards; (ii) improve the safety, reliability and delivery of drinking water for the population of about 300,000 inhabitants of the project area covering the municipalities of Split, Solin, Kastela, Trogir and their surrounding areas; and (iii) improve the operational and financial performance of the Split Water and Sewage Company (ViK). The total cost of the project amounted to EUR 133.3 million. The World Bank participated in the financing of the Project with a loan in the amount of EUR 33.2 million. Beside the Bank, the project was financed by the Government of Croatia, through Croatian Waters, participating municipalities and the European Bank for Reconstruction and Development (EBRD). Project impact: Significant investments were undertaken in the Kastela Bay that improved the delivery of water services and collection, and treatment of wastewater. Following completion of water supply project component, more than 300,000 people living in the area, as well as many tourists, now have continuous and reliable access to good quality drinking water. Indirect project effects are also visible, because the reliable water-supply and wastewater disposal systems have created preconditions for the development of tourism as one of the most significant sectors of the Croatian economy. By 2009, once all investments are completed, all the wastewater in the Split and Kastela area will be collected, treated and disposed trough deep submarine outfall, thus eliminating any pollution of coastal waters in the project area. This outcome of the project, which can be measured by physical and biological indicators for the reduction of the emission of polluted wastewater into the ecologically sensitive Kastela Bay, has already been mainly achieved after completion of Split-Solin wastewater system, and will be fully achieved after completion of Kastela –Trogir wastewater system in 2009. Kastela Bay, and especially its most endangered eastern part, has recovered as a result of the construction of this system. In addition to this successful project, the World Bank is currently supporting two other projects in the water sector: Coastal Cities Pollution Control Project, designed to increase the provision of wastewater services in Croatia’s coastal cities and thus improve water quality in the Adriatic, and Inland Waters Project, which will improve water supply services, wastewater services, and flood protection measures in the inland part of Croatia. “Municipal Environmental Infrastructure Project (EKO – Kastela Bay project) is the first large investment project addressing wastewater treatment in Croatia. This project is of exceptional environmental importance for the Republic of Croatia and CBRD has been involved in the project from the very beginning. Through active participation in the project, CBRD has significantly contributed by securing all necessary sources of finance and assisting in accomplishing the objectives of the project. In our role of project coordinator we developed successful cooperation with the World Bank, the EBRD, EKO Agency, local community and other state and regional authorities”, stated Anton Kovačev, CBRD President of the Managing Board “The whole EKO Kastela Bay project improves living standards of inhabitants of Split, Solin, Kastela and Trogir, in both environmental and economic sense. World Bank representatives recognized this fact a long time ago and took part in the financing of the large project which is soon coming to its close,” added Zlatko Caljkusic, EKO Agency Director. “The World Bank has for the past sixteen years been actively assisting Croatia improve its water and infrastructure sectors. Therefore, we are very pleased that this Project has again provided us with the opportunity to be a partner to the Government of Croatia and other project participants in bringing improvements to the environment, the people in the project area and to the local water and sewerage companies. We look forward and are ready to support future activities in the water sector,” noted Stjepan Gabric, World Bank Task Team Leader. Since Croatia joined the World Bank in 1993, the organization has been active in providing financial and technical assistance, policy advice and analytical services to Croatia. To date, the Bank has offered support for 38 operations with a total value of US$2.3 billion, and it has approved 49 grants at a total value exceeding US$58 million. - ### - For more information about the World Bank's work in Croatia, visit
http://www.worldbank.hr
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