EBRD finances the reconstruction of the water supply network in Sarajevo

BusinessSouth-East European INDUSTRIAL Мarket - issue 2/2017

EBRD finances the reconstruction of the water supply network in Sarajevo

The European Bank of Reconstruction and Development (EBRD) announced it is financing a major project for the renovation of the water supply network in Sarajevo. The reconstruction of the water infrastructure in the capital of Bosnia and Herzegovina is going to be funded by a 25 million euro sovereign loan provided to the Sarajevo Canton Water and Wastewater Company, EBRD added.

The loan agreement was signed during the EBRD 2017 Annual Meeting and Business Forum in Nicosia, the capital of the Republic of Cyprus, by Susan Goeransson – EBRD Director for Municipal and Environmental Infrastructure, and Mirko Sarovic – the Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina.

The investment will help the implementation of projects for the reduction of water losses in the water supply network in Sarajevo and the optimization of the services, provided by the local water utility company. The loan is the second transaction under the EBRD’s new Green Cities Framework. The programme supports governments, municipalities, municipal-owned and private companies to deal with environmental problems in urban areas.

“Thanks to expert technical assistance funded by the EBRD, the company, which is currently loss-making, will be made commercially sustainable. The preparation of a Green City Action Plan (GCAP), a strategic plan which will benchmark environmental challenges and propose priority areas for improvements in the Sarajevo Canton, will also be a part of the project.

The Green Cities programme is part of the EBRD’s efforts to make the countries where it operates greener. A well-functioning market economy should be competitive, inclusive, well-governed, environmentally friendly, resilient and integrated. These qualities are implicit in the EBRD’s founding articles”, EBRD stated.

“Today’s signing, which will reduce water losses and help the Canton solve one of its most urgent problems, is an important part of our work in Bosnia and Herzegovina. This project will directly help to improve the access to water for the people of Sarajevo”, Ian Brown, EBRD head of Bosnia and Herzegovina, said.

“I am delighted to sign this loan agreement today at the EBRD 2017 Annual Meeting and Business Forum in Nicosia. This funding from the EBRD is a welcome and much needed investment in the infrastructure in the Sarajevo Canton, and is further evidence of our cooperation with the EBRD”, Minister Sarovic added.

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