April 13 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it is lending up to 25 million euro ($30.8 million) to Bosnian water utility Vodovod i kanalizacija for the overhaul of the water supply system in the Sarajevo Canton.
The loan will comprise two tranches of 10 million euro each and one of 5 million euro, while the total project cost for capital investments and technical cooperation will amount to 30.8 million euro, the EBRD said in a statement earlier this week.
The main purpose of the project is to reduce water losses and eliminate cuts in water supply. This should assist Vodovod i kanalizacija to cut its operating costs through reduced consumption of electricity, to improve the quality of the service and the efficiency of the system, the lender said.
Commitment to the second and third tranche, of 10 million euro and 5 million euro, respectively, will be subject to completion of their respective Environmental and Social Due Diligence, satisfactory environmental and social performance and compliance with the Environmental and Social Action Plan under the first tranche.
The Canton will also need to launch the Green Cities Action Plan preparation process for the second tranche and approve it for implementation for the third tranche.
($=0.8111 euro)