The Head of the EU Delegation and EU Special Representative in BiH, Ambassador Luigi Soreca, attended the signature of two grant agreements worth a total of €5.8 million, through which the EU is funding energy efficiency improvements in Tuzla Canton as well as the modernisation of the water distribution system in Sarajevo Canton. These EU grants facilitate a further €33 million in favourable loans from the European Bank for Reconstruction and Development (EBRD). The contracts were signed by the Finance and Treasury Minister of Bosnia and Herzegovina Srđan Amidžić and Elena Gordeeva, Director of the EBRD’s Infrastructure Team for Europe in the presence of Ambassador Soreca.

“By improving energy efficiency in public facilities and ensuring reliable access to clean water, we are helping communities live healthier, more sustainable lives. This is another tangible sign of the EU’s commitment to Bosnia and Herzegovina’s European path. The European Union is continuing its long-standing support for improving infrastructure in Bosnia and Herzegovina for the good of the country’s citizens. The European Union is not only the largest donor in Bosnia and Herzegovina, but also its most reliable partner. Through initiatives like these, we are working hand in hand with institutions at all levels to improve everyday life, create jobs, and support the transition toward a green, modern and integrated economy. Our vision is clear: a stable and prosperous Bosnia and Herzegovina with a future in the European Union,” said Ambassador Luigi Soreca.

The improvement of energy efficiency in Tuzla Canton is implemented within the Regional Energy Efficiency Programme (REEP) that is designed to assist the Western Balkans countries in decarbonising their economies by promoting investments in renewable energy and energy efficiency measures.  Up to 173 buildings occupied by administrative, education and healthcare facilities, including schools and sports halls will be renovated. The works will include thermal insulation of walls, roofs and ceilings, as well as replacement of windows, energy sources for heating and modern lighting. Alongside the EU’s grant of €2 million, the EBRD will provide an €8 million loan. As a result, energy and maintenance costs in these buildings will be lowered, leading to major energy savings. 

The outdated Sarajevo water distribution network is undergoing extensive reconstruction and optimisation which will help improve water supply across six Sarajevo municipalities. Alongside the EU’s grant of €3.8 million, co-financed through the EU’s IPA 2020 National Programme, the investment is financed with a €25 million loan from the EBRD. The project has been running for several years and is now entering its final phase with more than 1,100 kilometres of water distribution network included. The network, which suffers from a staggering 70% water loss, will be improved with measures to help drastically reduce these losses. The investment includes a comprehensive replacement or rehabilitation of ageing pipelines, pumping stations and wells, which will allow about 4,000 new households to connect to the network.

Minister Amidžić underlined that the signed agreements are building up on successful cooperation with the European Bank for Reconstruction and Development and the European Union, as an important step towards the implementation of priority infrastructure projects. Their implementation will foster concrete investments to modernise public infrastructure, increase energy efficiency, improve the quality of public services and the living standards of citizens, in line with the country’s development priorities and strategic interests.

Gordeeva said: “Improving energy efficiency of buildings and water supply are one of our main priorities in Bosnia and Herzegovina. We are grateful to the EU for supporting these investments which will help the Canton Sarajevo solve one of its most urgent problems and improve energy efficiency and comfort of its public buildings in Tuzla Canton.”

In addition to the investment grant for Sarajevo’s water distribution network, the EU also provided €500,000 for technical assistance for the supervision of works, extended through the Western Balkans Investment Framework (WBIF). 

Both the Tuzla energy efficiency improvement and the Sarajevo water distribution system projects are aligned with Bosnia and Herzegovina’s obligations under the Green Agenda for the Western Balkans and contribute to the country’s gradual alignment with EU climate, environmental and energy standards. These investments will bring direct benefits for citizens, reduce operational costs for public authorities, and contribute to climate mitigation goals.