The project comprises water supply, wastewater treatment and irrigation components and would ensure the irrigation of over 12,000 hectares of land in the Serb Republic, the entity's farming ministry said in a statement on Saturday.
Mekorot board chairman Alex Wiznitzer said the specific contracts on the implementation of the project would hopefully be signed in January 2013.
The Serb Republic is one of the two autonomous entities that make up Bosnia and Herzegovina. The other one is the Muslim-Croat Federation.
($=0.7710 euro)