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EBRD in loan for Bosnian waste water system
Bijeljina project cuts water pollution, reduces health hazards
The EBRD is lending €7 million to the water authorities in the town of
Bijeljina, in the Republika Srpska, to help finance construction of a waste
water network that will reduce water pollution and cut health hazards in the
city in Bosnia-Herzegovina.
A further €4.5 million will be provided by the Bijeljina city authorities for
the project that also aims to replace dilapidated asbestos cement water pipes.
The new network will address problems of pollution in the underground water
system that is the only source of local drinking water for around 65,000
people.
The project also aims to increase the provision of water services to achieve
supply 24 hours a day and 90 percent coverage in the city, up from 70 percent
now, and 65 per cent coverage in rural areas.
The loan will also be used to modernise the water network, by replacing
rundown water mains to reduce operating costs and increase efficiency. Also
envisaged is the gradual upgrading of a water meter scheme, all of which will
add to the positive environmental impact of the project.
Mico Micic, Mayor of Bijeljina, said that the construction of the sewerage
system is the largest project in the Municipality of Bijeljina. This capital
investment will solve crucial issues of environmental protection, including
protection of long-term potable water resources. We are delighted to work on
this project together with a reputable international financial institution
such as the EBRD and I hope that this would pave the way for further
cooperation in the future, Mr Micic said.
Signing the project, EBRD President Lemierre said this is the first EBRD
project in the municipal infrastructure sector in Bosnia-Herzegovina and is
the fruit of the close cooperation with the Bosnian government in securing
financing for priority municipal infrastructure projects. The construction of
the new Bijeljina waste water network has clear implications for health in the
region. In the absence of this project the drinking water supply would be at
risk from groundwater pollution and environmental conditions in the town of
Bijeljina could continue to deteriorate, Mr Lemierre said.
The local water company Vodovod i Kanalizacija Bijeljina will be the direct
beneficiary of the project and together with the Municipality of Bijeljina
will be responsible for its implementation. Technical Cooperation to the
amount of up to €600,000 will be provided to assist the company to implement
the project and to improve its financial and operational performance. Vodovod
i Kanalizacija Bijeljina is a joint stock company owned 65 percent by the
government of Republika Srpska, 10 percent by a pension fund and five percent
by the Restitution Fund of Republika Srpska. The remainder is held by
individuals and privatisation investment funds. The project will ensure that
the company develops as a sustainable business providing a high quality and
sustainable service to the citizens of Bijeljina.
Vasilije Micic, General Manager of Vodovod i Kanalizacija Bijeljina, stated
that this is the largest project in Bijeljina which would have a significant
impact on the lives of its citizens. It is expected that the project would
also help the company to expand its business volume by introducing new
services to their customers and to improve its financial and operational
performance.
The EBRD is the largest institutional investor in Bosnia-Herzegovina, having
invested €594 million in 56 projects so far, 69 per cent of which were in the
public sector and the rest in the private.
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