A €5.0 loan provided by the EBRD is set to fundamentally improve the handling of wastewater in the Bosnian municipality Cazin.
The funds, which are extended to the state of Bosnia and Herzegovina and on-lent to the public utility company JKP Vodovod Cazin, will be used to finance the expansion of the wastewater collection network and the construction of a wastewater treatment plant. Co-financing grants of up to €6.0 million are currently being considered by international donors.
The municipality has an estimated population of 70,000 who will benefit from the investment. The investment programme will reduce burdens on the environment and through infrastructure development facilitate the economic development of the municipality. Cazin is located in the Una-Sana Canton in the north-west part of the Federation of Bosnia and Herzegovina at the border with the Republic of Croatia.
Technical cooperation funds of €350,000 have also been mobilised to help develop a binding Public Service Contract (PSC) between the Cazin municipality and the utility JKP to put the relationship on a purely commercial and professional basis. It will also include the rebalancing of tariffs in order to eliminate cross subsidies between households and commercial consumers.
Sir Suma Chakrabarti, EBRD President said: “This project represents an important step forward in the infrastructure development of the Cazin municipality. As it combines benefits for the population, the environment and the local economy its success will serve as an example for all Bosnia and Herzegovina. €ť
Nikola Spiric, Minister of Finance and Treasury of Bosnia and Herzegovina added: “First of all, this project will contribute to improved quality of utility services in Cazin municipality and it will have a strong environmental impact not only in Bosnia and Herzegovina but also in the neighbouring municipalities in the Republic of Croatia. We are glad that the European Bank managed to mobilise significant grant funds for this project €ť.
To date, the EBRD has invested more than €1.5 billion in some 100 projects in Bosnia and Herzegovina with a focus on infrastructure development, support for small and medium-sized enterprises and strengthening the financial sector.