EIB LENDS 30 MILLION EUROS FOR WATER SUPPLY AND WASTEWATER TREATMENT

SARAJEVO, Bosnia (August 27,2008) - The European Investment Bank (EIB) is lending 60 million Euros for implementation of the water and sanitation projects of municipalities and cantons in . This will help to improve the quality of life of the country’s citizens and meet Bosnia’s needs regarding future compliance with EU environmental legislation.

The EIB loan will finance an investment programme for the water and wastewater sector in 15 Bosnian towns that will result in an improvement and expansion of water supply and sewerage systems and the construction of wastewater treatment plants.

The EIB loan will cover up to 50% of the total costs of the planned projects that will be co-financed by the budgets of the FBIH entity and municipalities and cantons and the EU Instrument for Pre-Accession.

The remaining funds will be provided by the European Bank for Reconstruction and Development and the World Bank, representing another example of the good coordination and cooperation among all three international financial institutions in the southeastern Europe.

At present, project preparation in a number of towns is already in progress, assisted by grants provided by the European Union under the Environmental Project Preparation Facility.

Some of the required feasibility studies have already been completed in cooperation between the municipal authorities and internationally experienced consultants, e.g. in Velika Kladusa, Orasje and Bosanski Petrovac, and more are to be undertaken in the course of 2008.

The EIB, the European Union’s Bank promoting EU objectives, has provided loans in Bosnia exceeding 760 million Euros since 2000, including the current loan. EIB lending in the country is on an upward trend. In 2007 alone, the Bank granted loans in Bosnia amounting to some 272 million Euros for various energy and road rehabilitation projects as well as the investments of small and medium-sized companies through indirect support via partner financing institutions operating in Bosnia.
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