Bosnia and Herzegovina utility secures loan for water supply project

Municipal public utility company JP Komunalno Capljina has secured a €5m loan from the European Bank for Reconstruction and Development (EBRD) for the expansion of water supply infrastructure in the municipality of Capljina in Bosnia and Herzegovina.

The financing will allow the utility to expand the water supply network in sub-urban areas and replace outdated water metres.

EBRD Central and Southeast Europe managing director Jean Marc Peterschmitt said the investment will improve the reliability and quality of the water supply of Capljina.

"With the support of the EBRD, Komunalno Capljina will align its services to international standards and will strengthen its operational efficiency," Peterschmitt said.

The water supply project will be cofinanced by a €4.5m grant from the European Union’s Instrument for pre-accession assistance, administered and managed by EBRD.

Bosnia and Herzegovina Finance and Treasury Minister Nikola Špiric said, "This project shall solve the long-standing problems in water supply of Capljina citizens."

All works will be completed by the end of June 2015 and, once completed, the project will connect 2,300 consumers to water supply systems.