GrCF3 - W2 - Zivinice Water & Wastewater

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a sovereign loan of up to €10 million to Bosnia and Herzegovina ("BiH"), to be on-lent to the City of Zivinice (the "City") through the Federation of Bosnia and Herzegovina ("FBiH"), to finance the reconstruction of water supply and wastewater systems in Zivinice (the "Project"). The Project is expected to be co-financed with an investment grant in the amount of up to €20.9 million from the European Union through the Western Balkans Investment Fund ("WBIF") and a €5 million contribution from the City. The Project will be implemented by JP Vodovod i Kanalizacije d.o.o. ("the Company" or the "Client"), the water supply and wastewater company, owned by the City. The Project is a follow-on project under the Tuzla Canton Green Canton Action Plan ("GCAP").

Project ID 53798

Status Approved

Location

Bosnia and Herzegovina

Industry Sector

Municipal Infrastructure

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Lejla Alagic
lejla.alagic991@gmail.com

Project ID 53798

Status Approved

Location

Bosnia and Herzegovina

Industry Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

21 Jul 2026

Disclosure date

27 Jul 2026

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Project Objectives

The Project aims to significantly improve the operational efficiency and service quality of Zivinice's water and wastewater systems, while delivering climate resilience benefits through reduced water losses and primary energy savings. It will also strengthen the Company's operational and financial performance as well as governance and institutional capacity through the development of a corporate development plan ("CDP").

Transition Impact

ETI score: 70

The Transition Impact of the Project will be derived from the following transition qualities:

Green: The Project will enhance stormwater climate resilience and significantly reduce water losses, leading to substantial primary energy savings.

Well-Governed: The Project will help develop a tailored two-phase CDP which will include a KPI framework and a Financial, Operational and Organization Performance Improvement Programme ("FOPIP"), while supporting the implementation of priority improvement measures. The CDP will also support the development and adoption of a new Public Service Contract ("PSC") between the City and the Company, clarifying their institutional relationship, including ownership, management and service delivery responsibilities as well as a tariff and funding mechanism.

Client Information

BOSNIA AND HERZEGOVINA SOVEREIGN

The Borrower is BiH. The Client is JP Vodovod i Kanalizacije d.o.o.

EBRD Finance Summary

EUR 10,000,000.00

A sovereign loan of up to EUR 10 million, to be on-lent to the City of Zivinice through the FBiH.

Total Project Cost

EUR 35,880,000.00

The total estimated Project cost is EUR 35.9 million.

Additionality

The Bank's additionality is derived from: (i) providing financing with a long tenor, not available in the market from commercial sources on reasonable terms and conditions; (ii) closing the funding gap for public sector investments without crowding out other sources such as international financial institutions ("IFIs"), government or commercial banks; (iii) capacity strengthening of the Company; (iv) triggering enhancing practices at the sector level; (v) helping the Company to mitigate physical transition risks and taking climate action, and (vi) providing best international procurement standards.

Environmental and Social Summary

The Project is categorised "B" under EBRD's 2024 ESP. The Project will improve the quality and efficiency of the drinking water supply, wastewater collection and treatment services in the City of Zivinice and several nearby settlements through renovation, upgrade and extension of its water and wastewater infrastructure, enhancing stormwater management and mitigating urban flooding risks. The Project will also reduce water losses and pollution from untreated wastewater discharges and contribute to improving health and well-being of the population. The Project is a follow-on investment under the Tuzla Canton GCAP to address priority environmental challenges in water supply and sanitation. Environmental and social due diligence ("ESDD") covering the Project components has been carried out by independent consultants as part of the feasibility study and included an independent environmental and social ("E&S") audit and an analysis of potential E&S impacts associated with the priority investments.

The ESDD has identified that the Company's organisational capacity to manage E&S risks in line with EBRD E&S Requirements ("ESRs") appears limited and will require further improvement, and a project implementation unit ("PIU") has been established to manage the Project. A Project-specific environmental and social management system ("ESMS"), including an E&S policy, is currently being developed to establish the framework for management, monitoring and reporting of E&S risks and impacts throughout Project implementation. National permitting requirements will need to be fulfilled, including obtaining the relevant construction- and water-related permits and approvals. An environmental permit is not required for the Project. The City will need to obtain an opinion from the Federal Ministry of Environment and Tourism on whether an environmental impact assessment ("EIA") procedure is required for the newly planned Maline Industrial Zone package wastewater treatment plant ("WWTP") unit (1,500 people-equivalent ("P.E.")) and the Pjesinac groundwater source. Although the Pjesinac source does not form part of the investments financed under the Project, it is considered associated infrastructure due to its functional linkage with the Project and its planned role as an additional source for the public water supply system of Zivinice. Project-specific contractor management procedures, as well as monitoring, reporting and E&S implementation arrangements, will be defined within the ESMS. The implementation of the Project will be supported by a PIU support consultant and CDP consultant.

The Project and its environmental and social action plan ("ESAP") mitigation/operational measures have been structured align the Project with the national and EU requirements related to drinking water, wastewater treatment, and sludge management. Any potential adverse impacts from replacement or expansion of the water or wastewater networks will be associated with the construction works and will be limited, localised and short-term, and will be mitigated or prevented by adhering to good construction practice. Temporary impacts will be related to noise, dust emissions, traffic disruption, waste generation, occupational health and safety risks, management of asbestos containing materials during replacement of existing pipelines and temporary disturbance to local communities and businesses. The Project will require limited land acquisition and expropriation for certain components, as well as management of environmental risks associated with operation of the planned package WWTP, including its performance and potential odour generation. Identified impacts are expected to be localised, temporary and reversible, and can be effectively managed through implementation of appropriate mitigation measures which are outlined in the developed Project-specific environmental and social management plan ("ESMP") and land acquisition and resettlement framework ("LARF").

The Company fully complies with the local labour laws, and its practices are aligned with ESR2 requirements, including relevant provisions on gender equality, anti-discrimination, and collective framework agreement. Internal grievance procedure will need to be further developed, adopted and communicated to all employees. The works will be carried out by contractors, and further requirements have been included in the ESAP in relation to contractor labour management, including employment status, working hours, wages/contributions, subcontractor control and access to a worker grievance mechanism.

At present, the Company operates an existing WWTP with the capacity under 50,000 P.E. and conducts regular wastewater quality monitoring. Historical monitoring results indicate compliance with applicable air emission and noise requirements, while operational reliability of the WWTP is expected to improve through procurement of critical spare parts. The WWTP also generates non-hazardous sludge, which is dewatered, temporarily stored on-site and periodically disposed of through authorised waste management operators. The future package WWTP (Sequencing Batch Reactor unit) will require appropriate operational controls for wastewater treatment and hazardous substances management, sludge management, and odour prevention.

Occupational and community health and safety ("H&S") management system needs to be further developed, and measures to protect H&S of workers and local communities during construction will need to be included in the contractors' plans in line with ESMP measures and implemented by the Company during operation phase too.

Preliminary designs for the water supply and wastewater networks indicate that some sections of the proposed infrastructure, together with associated facilities (such as manholes, inspection chambers, oil and grease separators, pumping stations and other ancillary infrastructure), will be located on privately owned land. The final land requirements will be confirmed during preparation of the Main Design and Expropriation Studies. Once the affected land plots and owners are identified, the City will need to prepare, disclose, approve and implement a Resettlement Plan ("RP") compliant with ESR5 requirements. Temporary access restrictions to businesses and services may occur during construction, and any temporary contractor use of private land must be legally authorised, agreed and compensated or managed as temporary land acquisition/restriction under national law and ESR5, in line with the ESAP.

There are no protected areas, endangered species or species requiring conservation in the Project area. However, the Project area is located in a potential Natura 2000 site Modrac-Gornja Spreca (BA8300050), therefore any impacts will need to be mitigated in line with the Contractor's CESMP and project ESAP. Project area habitats are already highly urbanised and under anthropogenic influence, only a temporary loss of green surfaces is anticipated, hence measures for restoration to original condition have been included in the ESAP. No areas of archaeological or cultural significance would be affected, however precautions will need to be taken during the construction works including a chance finds procedure.

Given the scale of the construction works, specific precautions will need to be taken by the contractors, including development of the construction E&S management plan. Relevant E&S requirements will need to be included in the tenders and contracts for the contractors. Maintenance/ operation of the water supply and wastewater management infrastructure will be the responsibility of the Company, which will develop an operational E&S management plan prior to the start of the operational phase. This will include an emergency response plan; a traffic management plan; pollution prevention and control plan, including for hazardous waste and construction waste management; developing and maintaining a formal asbestos inventory / dedicated asbestos management procedures; development and implementation of the industrial discharges pretreatment and management/monitoring plan; occupational and community health & safety management plans; alignment of personal data protection requirements with General Data Protection Regulation and introduction of cybersecurity incident response to protect critical infrastructure. The Company also needs to finalise and implement a stakeholder engagement plan ("SEP"), including a grievance mechanism, to ensure adequate information disclosure prior to the commencement of works. SEP and non-technical summary ("NTS") will need to be disclosed locally.

The ESAP with the corrective E&S measures has been prepared for the Project to be structured and implemented in line with EBRD ESRs. It will be agreed before Board and included as part of the legal documentation. The PIU support and CDP consultants will assist in implementing the respective elements of the ESAP. The Bank will monitor the Project's E&S performance through annual reports and implementation of the ESAP, and monitoring site visits, if deemed necessary.

Technical Cooperation and Grant Financing

It is envisaged that post-signing TC support for this transaction will be provided to assist the City and the Company with the: (i) implementation and supervision of the Project and related works; (ii) development of a two-phased CDP that will include amongst other matters (a) the development of a FOPIP addressing the Company's operational, financial and organization weaknesses as well as (b) the development and implementation of a PSC between the Company and the City to establish clear responsibilities in terms of management and maintenance of the network and performance indicators as well as a defined tariff and compensation methodology.

Company Contact Information

Lejla Alagic
lejla.alagic991@gmail.com

Implementation Summary

PSD Last Updated

27 Jul 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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GrCF3 - W2 - Zivinice Water & Wastewater

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

Implementation Summary

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)