Bosnia's Banja Luka to start building 6 mln euro 50 km water supply system

The project phase called "Water 2", which is part of a bigger project, has the aim to deliver water to 1,620 households, the city government said in a press release on Monday.

"Water 2" is part of a water supply project worth 25 million marka, comprising also "Water 1" and "Water 3" whose goal is to provide water to 95% of the city's population or some 40,000 people by 2022.

The whole project is planned to be financed mostly through a loan by the European Bank for Reconstruction and Development (EBRD) and an 8 million marka grant from the European Union (EU).

A decision to use the EBRD loan to finance the project will be voted on by the city's assembly on December 11.

In September, the EBRD said it will finance improvements of Bosnia's Banja Luka water supply network through a loan of 4 million euro. The loan is part of a wider 10 million euro investment programme by the Banja Luka municipality intended for rehabilitation and expansion of its water and sewerage network.

The "Water 1" phase, which has started this autumn, comprises the construction of 56 km of a new water supply network to deliver water to 2,450 households or some 10,000 people by 2021.

The city has yet to determine the priorities for "Water 3" which will be financed through a grant by the EU.

Banja Luka is the second-largest city in Bosnia with a population of 200,000.

(1 euro = 195583 marka)