In 1999 within the loan agreement, signed with the North Environmental Finance Corporation (NEFCO), many cities of Latvia have received financial support for water management system reconstruction.

In cooperation with Vyborg municipality the institutional system has been improved and within its framework specialists from Denmark have shared their experience with colleges from water management organizations in Latvia about the preparation of drinking water, wastewater treatment, successful water supply and wastewater collection service organization and also about progressive activities for providing well-timed payment for the service. In addition the accounting computer program has been established in Latvian organizations and also there has been developed a computer program for bill processing.

Projects have been implemented in following cities:

• Aizkraukle
• Bauska
• Dobele
• Gulbene
• Saldus
• Sigulda
• Kuldīga
• Limbaži

As a result of projects implementation the supply of qualitative drinking water have been provided and wastewater treatment has been improved. In order to provide the accomplishment of requirements of the Legislation, in these cities second stage of water management system reconstruction is planned. If financial recourses from EU Cohesion fund will be received, the project would include water and wastewater network expansion.

Environmental Investment Fund:

• Evaluated technical, financial and prospective environmental improvement of the projects implemented,
• Supported municipalities during the project implementation, e.g. procurement process and process of reconstruction,
• Performed financial and environmental improvement monitoring of the implemented project during the period of loan repayment.
   
  The loan has been fully repaid in September 2012.

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