Representatives of the Government of Canton Sarajevo, the Ministry of Finance and Treasury of BiH, the Ministry of Finance of FBiH and PUC Water and Sewerage (VIK) yesterday completed negotiations on implementation of 50 million BAM worth loan for the reconstruction and rehabilitation of the water supply network in Canton Sarajevo with representatives of the European Bank for Reconstruction and Development (EBRD) in BiH.
Loan funds will be realized in three tranches, with the first and second one amounting to 20 million BAM and the third tranche in the amount of 10 million BAM.
“We agreed on relatively favorable financing conditions that are much better than those that can be obtained on the commercial banking market. They primarily refer to a grace period of 3 years and the interest rate on withdrawn funds of 1 % and 0.5 % on non-withdrawn funds,” said the Minister of Finance of CS Jasmin Halebic.
As announced, the agreement on the loan will be signed in the first half of May this year, and after that, it must be ratified by the Council of Ministers of BiH and the Parliament of FBiH.
It is expected that this procedure will be completed in about two months and that the first 20 million BAM of loan for the reconstruction of the water supply network could be operational in this year’s construction season.
“We expect that the works could start in September, according to the priorities from the Studies of VIK. The funds, among other things, will be used for reconstruction of water supply network, as well as for replacement of pumps, for water springs and procurement of necessary equipment,” said Minister of Utilities and Infrastructure of CS Senad Hasanspahic.
He noted that significant funds for the reconstruction of the water supply network were allocated from the Budget of CS for the position of water charges, as announced by the Press Service of CS.
(Source: faktor.ba)
