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EIB funds €53.2 million upgrade for Brno's wastewater plant

  • EIB funds €53.2 million upgrade for Brno's wastewater plant

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European Investment Bank
The EIB is the European Union's bank. We are the only bank owned by and representing the interests of the European Union Member States. We work closely with other EU institutions to implement EU policy.

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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.”

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

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.

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