Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

19 Oct 2004



PSD disclosed:

02 Jul 2005

Project Description

The proposed project comprises the rehabilitation and modernisation of the wastewater treatment plant (WWTP) in the City of Subotica. This will increase the treatment capacity of the WWTP,  introduce removal of phosphorus and nitrogen and improve sludge treatment.  
The operation has environmental objectives to restore the ecological balance and increase the recreational value of Lake Palic.  It will also ensure higher quality water supply and sewerage service to citizens in the region and improve the financial and operational sustainability of the water company.

Transition Impact

  • Commercialising of the water industry in Subotica 
    The operation will introduce a Service Contract between the City and the water company to determine the level of service standards, and set targets for financial and operating efficiency.
  • Demonstration effect 
    The project is developed together with the Serbian Municipal Infrastructure Agency, which will help spread best practices for project identification and preparation to other municipalities in Serbia.  
  • Procurement 
    Enforcement of the Bank’s Procurement rules will result in the use of competitive and transparent procurement procedures.

The Client

Subotica Vodovod i Kanalizacija, the City of Subotica’s municipal water utility enterprise. The utility enterprise provides water supply and sanitation services to the City of Subotica.
The City of Subotica is located in the region of Voijvodina in north-western Serbia close to the Hungarian boarder. The City has 100,000 inhabitants.

EBRD Finance

Sovereign guaranteed long-term loan of up to € 9 million.
Grant co-financing is expected from the European Agency for Reconstruction, and from local contributions

Project Cost

€ 12 million.

Environmental Impact

The project was screened B/0, requiring environmental analysis, which  may include an environmental action plan. The project will help improving environmental, health and safety management of the wastewater collection and treatment facilities.  
When fully implemented and operational, the investment project will bring environmental benefits to the population of the city of Subotica by:

(i) improving the quality of the effluent
(ii) reducing pollution of  the Lake Palic.

Technical Cooperation

  • Technical and environmental due diligence assignment 48,000 Euro funded from the Bank’s Austrian Technical Cooperation Fund
  • Preparation of technical designs and tender documents and Procurement Support 150,000 Euro funded from the Bank’s Technical Cooperation Funds Programme from the Netherlands.
  • Project Management and FIDIC engineer Euro 600,000 funded from Italy/EBRD Trust Fund for private sector development in Western Balkans
  • Institutional development programme for the Company and the City, expected to be provided by the European Agency for Reconstruction (EAR).

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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