The EBRD and the European Union are helping to improve the quality of water services in Bosnia and Herzegovina by financing the expansion of the water supply infrastructure in the municipality of Capljina, in the south of the country. The Bank is providing a €5 million sovereign loan while the EU is supporting the investment with €4.5 million provided under its Instrument for Pre-accession Assistance (IPA) which is administered and managed by the Bank.

The financing will be used by the municipal public utility company JP Komunalno Capljina to expand the water supply network in sub-urban areas and to replace outdated water meters.

The project will connect about 2,300 new consumers to water supply systems and will contribute to raising the living standards of the population in the rural parts of the Capljina municipality.

Technical co-operation funds for the preparation and implementation of the project have been provided by the Central European Initiative as well as by the governments of Spain and the Czech Republic.

“This investment will improve the reliability and quality of water supply in the municipality of Capljina and will bring potable running water to about 2,300 households more”, said Martin Schieder, Head of Operations for Economic Development, Natural Resources and Infrastructures, European Union Delegation to BiH.

“With the joint support of the EBRD and donors Komunalno Capljina will upgrade its services to international standards and will strengthen its operational efficiency,” said Libor Krkoska, EBRD Head of Office, Bosnia and Herzegovina.

Dr Nikola Spiric, Minister of Finance and Treasury, stated that this project is of great importance for the population of the Capljina municipality:

“This project shall solve long-standing problems in supplying the citizens of Capljina with water. The implementation will significantly reduce water losses and create conditions for the connection of new consumers to the public water supply system “, said Minister Spiric.

To date, the EBRD has invested more than €1.6 billion, in some 110 projects in Bosnia and Herzegovina, with a focus on infrastructure development, support for small and medium-sized enterprises, and strengthening the financial sector.

Since the end of the war in Bosnia and Herzegovina, the European Union has provided the country with more than €3 billion in assistance funds.