Bucharest’s Sector 2 and CEB partner to invest €38.8 million in schools, housing and urban regeneration

Paris/Bucharest – Bucharest’s Sector 2 Municipality and the Council of Europe Development Bank (CEB) have signed a €38.8 million loan agreement to support investments in education, affordable housing, social infrastructure and urban regeneration. The financing will help improve public services, create greener and more accessible neighbourhoods, and enhance the quality of life for residents.

Sector 2 is one of the most densely populated districts in Bucharest, with a diverse population and significant social and infrastructure needs. The investment programme will address these challenges by modernising public facilities, improving access to housing and essential services, and creating more inclusive and sustainable urban spaces.

The programme will focus on three main areas:

• Social infrastructure and affordable housing: Developing energy-efficient housing for young people, modernising healthcare and social care facilities, and expanding services for vulnerable groups.
• Education and community facilities: Upgrading schools and sports facilities, and adapting existing spaces for educational and community activities to provide better opportunities for children and young people.
• Urban regeneration and energy efficiency: Improving parks and green spaces, creating urban gardens, supporting sustainable mobility and increasing the energy efficiency of residential buildings.

The investments are expected to benefit residents across Sector 2, while providing targeted support to vulnerable groups, including low-income households, young people and residents of neighbourhoods with limited access to social, educational and community services.

“Sector 2 needs substantial investment, well-prepared projects and funding that will enable us to build for the long term. Through this agreement with the Council of Europe Development Bank, we are securing significant resources to modernise schools, develop housing for young people, improve social infrastructure and create better neighbourhoods. We want every investment to have a tangible impact on the daily lives of our residents, from better learning conditions for children to new opportunities for young people and improved services for vulnerable groups,” said Rareș Hopincă, Mayor of Sector 2.

“Through our cooperation with Bucharest Sector 2 we are addressing the needs of a growing and diverse urban community, with particular attention to those most vulnerable. This programme shows how long-term financing can support local authorities in making a tangible difference to people’s everyday lives,” said Rainer Lovato, Head of Projects at the CEB.

The €38.8 million loan will contribute to a wider investment programme estimated at €111 million. Provided through the CEB’s Public Sector Financing Facility, the financing will help the municipality implement priority projects and co-finance investments supported by European Union funds.

The programme supports the objectives of Sector 2’s Local Development Strategy 2021–2027 and reflects the shared priorities of the municipality and the CEB to improve access to essential services, reduce inequalities and promote sustainable urban development.