The EIB in the Water Sector: Supply and Sanitation Schemes

The reason why the EIB finances water supply and sanitation projects is mainly environmental. Moreover, these projects often support the achievement of other Bank priority objectives as well. Within the EU-25 and the Enlargement Countries, EIB-financed water supply and sanitation projects not only protect and safeguard the natural environment, contribute to people’s welfare, reduce health risks associated with water-borne diseases and protect fragile ecosystems and the diversity of freshwater species, but also support regional development and economic and social cohesion in areas where the lack of infrastructure is a constraint to development.

Primarily, the EIB seeks to finance investment projects and capital expenditure programmes. This is often undertaken jointly with the European Commission (EC), which manages various EU grants. This is done in order to ensure adequate resources for such heavy investments as well as compliance with EU legislation on water. EU legislation includes the EU Water Framework Directive (WFD) (2000/60/EC) and related directives, such as those on Urban Wastewater Treatment (91/271/EEC), Drinking Water (98/83/EC) and Bathing Water Quality (76/160/EEC). The WFD – integrated river basin management for Europe – is the most substantial piece of EU water legislation to date. It requires all inland and coastal waters to reach “good status” by 2015.