EBRD grants loan for Banja Luka to improve water supply

The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to €6 million to Banja Luka, the second-largest city in Bosnia and Herzegovina, for improving its water supply and wastewater collection.

The city has a population of around 200,000.

EBRD’s loan will be granted under EBRD Green Cities, a framework that addresses environmental and sustainability concerns via a mix of investments in municipal infrastructure, and energy and policy measures.

A Green Cities Action Plan, developed by Banja Luka and the EBRD, is said to have determined the insufficient water supply and water quality as urgent priorities that have to be taken care of. In line with that, the proceeds of the EBRD loan will be used towards the upgrade of the water and wastewater infrastructure in Banja Luka.

The loan from EBRD is part of a €56 million long-term investment plan by Banja Luka to bolster and expand its water and wastewater infrastructure. The plan is expected to enhance its residents’ access to high quality drinking water apart from rehabilitating and extending the city’s sewerage network, which is another of wastewater challenges in the city.

The European Union is expected to back the project with a €4 million grant under its Instrument for Pre-Accession Assistance 2020.

EBRD grants loan for Banja Luka to improve water supply. Photo courtesy of European Bank for Reconstruction and Development.