EBRD strengthens climate resilience in Serbia

• Sovereign loan of up to €66 million to support construction of a multipurpose dam in western Serbia
• Major investment in flood protection, climate resilience and future irrigation in the Kolubara River basin
• Loan and project agreements signed with the Serbian government and key public institutions

The European Bank for Reconstruction and Development (EBRD) is supporting Serbia’s efforts to strengthen climate resilience, protect communities from flooding and improve long‑term water security through the Pambukovica dam project, a significant investment in sustainable water infrastructure in western Serbia.

The project is being supported by an EBRD sovereign loan of up to €66 million to the Republic of Serbia and will involve the construction and operation of a multipurpose dam and reservoir near the village of Pambukovica in the flood‑prone Kolubara River basin.

The Pambukovica dam will play a critical role in reducing flood risks in one of Serbia’s most vulnerable regions, helping to protect people’s lives, homes, farmland and key infrastructure. The Kolubara River basin has repeatedly been affected by extreme weather, including the devastating floods of 2014, highlighting the urgent need for resilient, long‑term water management solutions.

Designed as a modern, climate‑resilient multipurpose dam, the project will initially focus on flood retention and flow regulation, while being pre‑designed to support future irrigation. The project will also ensure ecological flow management, sediment control and improved water quality, contributing to healthier river ecosystems and more sustainable land use across the wider catchment area. Once the reservoir has been fully established, the project is expected to enable the development of irrigation systems serving more than 2,200 hectares of agricultural land, thereby strengthening local farmers’ resilience to droughts and increasingly unpredictable rainfall. This will further enhance the long-term climate resilience and agricultural productivity of the region.

Jelena Čeperković, the EBRD’s Deputy Director for Serbia, said: “The Pambukovica dam project is a strategic investment for Serbia, strengthening protection against floods while laying the foundations for more resilient agriculture and sustainable water management. Through this project, the EBRD is helping communities to better adapt to climate change and secure long‑term economic and environmental benefits.”

Goran Puzović, the CEO of Srbijavode, said: “The Pambukovica dam is a major water management project that will significantly reduce flood risks in the Kolubara River basin, a region repeatedly affected by extreme weather, including the floods of 2014. The project will also support the future irrigation of more than 2,200 hectares, improve water quality and strengthen the area’s resilience to climate change. Srbijavode remains committed to developing modern and sustainable water infrastructure, in close cooperation with the Government of Serbia and international partners, to enhance public safety, agricultural stability and regional economic development.”

The EBRD is the leading institutional investor in Serbia, having invested more than €10.8 billion through 407 projects to date. The Bank’s focus in Serbia is on private-sector competitiveness, the green economy and sustainable infrastructure.