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Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

24 Jul 2001



PSD disclosed:

13 Jul 2001

Project Description

Proposed municipal loan of up to € 60 million to improve urban transport, water supply, waste-water treatment and district heating services in Belgrade.
The objective is to finance priority investment to improve the services provided by the Belgrade Public Transport Company, the Belgrade Water Company and the Belgrade District Heating Company.

Transition Impact

The operation would demonstrate that loans can be extended directly to municipalities in FR Yugoslavia without a sovereign guarantee.
The operation would also assist the city in reorganising and commercialising urban transport, municipal water and district heating services.

The Client

In 2001, the € 60 million loan was signed with the City of Belgrade to finance 3 project components, with the beneficiaries being Belgrade Public Transport Company, the Belgrade Water Company and the Belgrade District Heating Company.

EBRD Finance

In 2001, a municipal loan of up to € 60 million was extended directly to the City of Belgrade with no sovereign guarantee. 
In 2014, the Bank is considering restructuring of this loan, in a way that the outstanding amount under the water component of € 5.66 million is transferred to the Belgrade Water Company and the outstanding amount under the district heating component of € 4.35 million is transferred to the Belgrade District Heating Company. The City will continue to be responsible for the debt service of the portion related to urban transport.

Project Cost

Total project costs are estimated at € 121 million.

Environmental Impact

The project has been screened B/0 requiring environmental analyses of the three components of the proposed municipal infrastructure rehabilitation programme. The analyses are currently being finalised. No significant environmental impacts are anticipated in association with the proposed investment programme. When implemented, the investments will bring significant environmental and public health and safety benefits to the population of the City of Belgrade by: (i) providing a new fleet of buses which will comply with EU air emission standards; (ii) providing sufficient amount of drinking water and improving drinking water quality; and (iii) increasing energy efficiency resulting in reduced greenhouse gas emissions from the heating plants.
Based on the findings of the environmental analyses, where necessary, appropriate environmental action plans will be prepared and incorporated in the legal agreement governing the operation.

Technical Cooperation

TC funding will be used to finance:
  • preparation of corporate development programmes for the participating municipal companies;
  • preparation of a creditworthiness enhancement programme for the city of Belgrade;
  • advisory services for reforms to the system of local government finance;
  • an independent lender’s supervisor.

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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