European bank provides loan for Serbian water project

The European Bank for Reconstruction and Development (EBRD) has allocated an €11m sovereign guaranteed loan to help improve the quality of water services in Subotica, Serbia.

Although improvements have been made in the Subotica water sector with the recent construction of a wastewater plant in the area, only 40% of Subotica’s residents are currently connected to the sewerage system.

The new investment will enable the city to fully close the wastewater cycle by extending the wastewater collection and sewage network.

EBRD deputy director of the municipal and environmental infrastructure team Lin O’Grady said, "This new EBRD investment will bring important improvements to the quality of life in Subotica and will help reduce the pollution in the area. The project will also help the public utility company in Subotica to improve its operational efficiency and become a financially sustainable, commercially oriented enterprise, setting an excellent example for other municipalities in Serbia."

The project will connect about 12,000 new consumers to wastewater systems, extending the overall sewage coverage to close to 60% of the population.

It will also help prevent the pollution of Palic Lake, one of the top five tourist destinations in Serbia situated 8km to the east of Subotica.