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Project summary document

Project name:City of Subotica Municipal Infrastructure Recon. Programme
Country:Serbia
Project number:26807
Business sector:Municipal and environmental infrastructure
Public/Private:Public
Environmental category:B
Board date:19 October 2004
Status:Signed
Date PSD disclosed:
Date PSD updated:
2 July 2004
28 February 2006
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EBRD lends to fifth municipality in Serbia [Press Release]
Life’s returning to Serbia’s Lake Palic [Story]

Project description
and objectives:

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

Total 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).

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Arthur Schankler, Operation Leader: schankla@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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