The loan has a repayment period of 15 years, including a three-year grace period, and carries a Euro Interbank Offered Rate (EURIBOR) interest, the Council of Ministers said in a statement earlier this week.
The Sarajevo Canton will be the final beneficiary of the loan.
The EBRD previously provided a 10 million euro loan for the acquisition of trams for the new tram line.
The Sarajevo Canton started the construction of the new tram line, a project worth 25 million euro, VAT excluded, in October 2023. The construction of the tram line encompasses about 13 km of tram tracks and 20 tram stations.
The Sarajevo Canton is one of ten cantons making up the Federation, one of two autonomous entities that form Bosnia and Herzegovina. The other entity is the Serb Republic.
($ = 0.932 euro)