The European Investment Bank (EIB) has committed a CZK 1.3 billion (approximately €53.2 million) green loan to modernize a wastewater treatment plant in Brno, Czech Republic. This initiative aims to replace an outdated sewage sludge facility, thereby reducing the carbon footprint of the treatment processes and enhancing environmental protection and public health.
Project Overview
Signed during the CEE Sustainable Finance Summit in Prague, the agreement, supported by EIB advisory services, will significantly upgrade the sewage sludge treatment facility at Brněnské vodárny a kanalizace (BVK)’s Modřice wastewater plant. This upgrade will improve environmental protection and public services in Czechia’s second-largest city.
Benefits and Impact
The project will enable BVK to increase the production of dried sludge, making transportation and disposal more cost-effective and safer. It will also enhance the energy efficiency of the sludge treatment process, reduce the overall volume of treated sludge, and improve the quality of treated wastewater. This modernization effort is expected to nearly halve electricity consumption during the treatment process, substantially cutting greenhouse gas emissions and improving environmental balance and public health.
Strategic Significance
“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. “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 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 live in.”
BVK's Role and Future Plans
BVK Board Chair Daniel Struž emphasized the importance of the sludge management project in BVK’s long-term strategy for providing top-quality water and wastewater services. He expressed appreciation for the EIB’s trust and co-financing, which validates their approach to renewing and developing strategic water infrastructure. BVK aims to continue this cooperation to finance future projects aligned with global environmental goals.
BVK’s Contribution to the Region
BVK, one of the largest water companies in the country, serves Brno and nearby towns and villages, home to a total of 415,000 people. Replacing the outdated sewage sludge facility will yield economic and social benefits, including substantial reductions in electricity consumption and greenhouse gas emissions. The project will also support an economically weaker region, aligning with EU cohesion policy.
EIB Group’s Broader Impact
In Czechia, about 95% of the population has access to clean water, and 86% are connected to wastewater management systems. The country performs well in terms of efficiency and conservation, with relatively low water losses and lower per capita water consumption compared to other EU countries.
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), finances investments that contribute to EU policy goals. All EIB projects adhere to strict environmental, social, and governance (ESG) criteria and align with the Paris Climate Agreement. The loan for BVK exemplifies the EIB’s commitment to the green transition, following previous support for sustainable biomass heating in Brno. In 2023, EIB Group financing in Czechia amounted to €1.88 billion, with €188 million provided through the EIF.
About Brněnské vodárny a kanalizace
Brněnské vodárny a kanalizace, a.s. (BVK) has been providing water services to Brno for over 150 years. The company operates the public water supply and sewerage systems for Brno and the surrounding area, and is recognized for its efficiency in water management, low water loss rates, effective wastewater treatment, use of advanced diagnostic methods, and innovative construction techniques.
