News in English     | 20.11.2019. 15:49 |

BiH and EBRD sign grant and loan agreements

FENA Darinka Mitrović

SARAJEVO, November 20 (FENA) - Deputy Chairman of the BiH Council of Ministers and Minister of Finance and Treasury Vjekoslav Bevanda and Head of the European Bank for Reconstruction and Development (EBRD) in BiH Manuela Naessl signed two contracts today in Sarajevo between BiH and the EBRD.

It is a grant agreement for Regional Water Supply Project "Blue Water" and a loan agreement for Živinice Regional Solid Waste Project.

Bevanda said that these are significant contracts with the EBRD, a long-standing partner in financing important projects in BiH. The first two-million-euro grant agreement between BiH and the EBRD is donated by the Swedish International Development and Cooperation Agency (SIDA) to support Regional Water Supply Project "Blue Water". The project has previously been funded with loans from EBRD and the Council of Europe Development Bank in the amount of EUR 11 million each. 

"Implementation of this project will ensure reliable and long-term water supply for the municipalities of Travnik, Zenica, Novi Travnik, Vitez and Busovača and thus regular water supply for about 250,000 inhabitants," Bevanda emphasized.

Minister Bevanda added that the second contract concerns the project of a regional solid waste landfill in Živinice, for which funds of 5 million EUR were allocated and aims at solving the long-standing waste problem in Živinice, as well as for the municipalities of Banovići and Kladanj in such a way that the waste management standard is simply being introduced and is being upgraded and brought closer to EU standards.

"I am convinced that the project will be completed within the foreseen deadlines, by the end of 2021, and that this will resolve the issue of regional landfill in Živinice. As for the terms of the loan, the repayment period is 15 years, including three-year grace period," added Bevanda.

Manuela Naessl, Head of the European Bank for Reconstruction and Development (EBRD) Office in BiH, said that both projects will improve the quality and sustainability of the services provided to citizens at the local level.

"The EBRD loan of five million euros for the construction of a regional landfill and recycling lot in Živinice is the first step of what is called waste management in the so called circular economy. These will be improved waste management services in Živinice, Kladanj and Banovići. Since Srebrenik and Lukavac also expressed interest in using the landfill, the project should have a direct benefit for about 180.000 inhabitants," Naessl said.

(FENA) A. B.

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