The European Bank for Reconstruction and Development (EBRD) will provide a loan worth RUB2.1bn (€51m) for a water treatment project in the East Siberian city of Yakutsk, Russia.

This 13-year loan will be utilized in the construction of a treatment facility for drinking water, which is the first of its type in the city.

The Bank has planned to invest in the city’s water treatment project as the existing infrastructure for water treatment does not meet the increasing demands of the local industrial and residential sectors.

EBRD noted that a separate project of it will help increase the energy efficiency of Yakutsk’s wastewater treatment plant, including through the modernization of wastewater pumping stations.

To date, the EBRD has committed around €420m for around 21 water projects in the country.

Currently, Yakutsk has a population of approximately 270,000 and is the world’s largest city located in the permafrost zone, while the extreme climatic conditions in the region increase the cost of operating its water supply and treating wastewater.