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- EBRD confirms third loan tranche of €5 million and EU provides an additional €3.8 million investment grant to support project implementation
- Investment to help improve Sarajevo’s water supply and reduce water losses
- Project part of the EBRD’s Green Cities framework
Work on Sarajevo’s water distribution network, which is being financed with a €25 million loan from the European Bank for Reconstruction and Development (EBRD), has received an additional boost from a €3.8 million European Union (EU) investment grant.
The outdated water distribution network in the capital city of Bosnia and Herzegovina is undergoing extensive reconstruction and optimisation work, which will help improve the water supply.
The EBRD has committed to disbursing the third tranche of its project loan, worth €5 million.
The project has been running for several years and is now entering its final phase. Some 1,119 kilometres of water distribution network will have been reconstructed by the time the project is completed. The rehabilitation measures should make dramatic improvements to the network, which suffers from staggering 70 per cent water losses. The investment includes the comprehensive replacement or overhaul of ageing pipelines, pumping stations and wells, which will allow the connection of about 4,000 new households to the network.
Elena Gordeeva, Director of the EBRD’s Infra Europe department, said: “Helping to improve the water supply is an important part of our work in Bosnia and Herzegovina. We are grateful to the EU for co-financing this investment which will help Sarajevo Canton solve one of its most urgent problems.”
Alongside Sarajevo, the EBRD has supported the cities of Banja Luka, Gradačac and Brčko in improving their water distribution networks.
“By improving energy efficiency in public facilities and ensuring reliable access to clean water, we are helping communities live healthier, more sustainable lives. This is a tangible sign of the EU’s commitment to Bosnia and Herzegovina’s European path. The European Union is continuing its long-standing support for improving infrastructure in Bosnia and Herzegovina for the good of the country’s citizens. The European Union is not only the largest donor in Bosnia and Herzegovina, but also its most reliable partner. Through initiatives like these, we are working hand in hand with institutions at all levels to improve everyday life, create jobs, and support the transition toward a green, modern and integrated economy. Our vision is clear: a stable and prosperous Bosnia and Herzegovina with a future in the European Union” said Ambassador Luigi Soreca.
In addition to the investment grant funded by the EU, bilateral donors to the Western Balkans Investment Framework (WBIF) have also provided a €3 million investment and technical assistance grant, while Sweden has contributed further funds for technical assistance through its Swedish International Development Cooperation Agency (SIDA).
The investment is part of the EBRD’s Green Cities framework. The programme supports governments, municipalities, municipal-owned and private companies in dealing with environmental problems in urban areas.
Sarajevo Canton, which joined the programme in 2017, has so far carried out six investment projects under the Green Cities programme, some of which have been successfully completed and others which are ongoing. In addition to the water network, the EBRD programme has supported the city in upgrading public transport and improving energy efficiency in public buildings.