EIB Global, the arm of the European Investment Bank (EIB) for activities outside the European Union, will invest €116 million as an overall financial package for the development of sustainable mobility, water and sanitation infrastructure and the healthcare facilities in Bosnia and Herzegovina. €75 million loan will go into the rehabilitation and extension of existing healthcare units and the construction of a new medical campus at the University Clinical Centre of Banja Luka. The project will enable better healthcare services and skilled human resources to strengthen the healthcare system’s resilience and response to future emergencies.
€35 million will be invested in the Sarajevo urban transport project to enable the modernization and extension of the tram and trolley bus networks.This will add to the €40 million already lent since 2021, bringing the total EIB investment to €75 million. Thanks to EIB Global financing for this project, the country’s capital will benefit from reduced traffic congestion and air pollution, increased safety and convenience of the public transport system.
Along with these loans, EIB Global has also signed a €6 million EU grant agreement channeled through the Instrument for Pre-Accession (IPA) for the extension of water supply, sewage collection and wastewater systems in some 20 municipalities in all parts of BIH. This grant will be blended with other existing investments provided under this comprehensive water and sanitation programme, which will help reduce environmental pollution and improve access to water and sanitation services for people across the country.
EIB Vice-President responsible for the Western Balkans, Lilyana Pavlova, said: “EIB Globalperceives these investments as a tremendous opportunity for the country to improve the sustainability of infrastructural capacities across different sectors. This will increase resilience to climate change and economic shocks and elevatethe living standard for people in BiH. In addition, the development of these vital projects is being done in line with the EU practices and the Economic and Investment Plan for the Western Balkans, taking into account the concrete needs and ensuring lasting benefits for local communities.”
EIB Global delegation met yesterday with the Chair of the Council of Ministers Borjana Krišto in Sarajevo to mark the signature of the financial package. As stated by Ms Krišto, BiH remains committed to European integration and regional processes, the foundations of which are communication connectivity and structural adjustment. “BiH needs to continue and strengthen cooperation with the EIB further, whose core mission are those processes. The EIB is one of the most important development partners of the country in terms of the number of invested loans and grants in local and regional development projects of public interest.”, she underlined.
Head of the EU Delegation and EU Special Representative in BiH, Ambassador Johann Sattler, said: “These considerable funds are more evidence that we deliver on our promises. They will make a concrete and positive difference for BiH citizens in the form of sustainable transport, improvements to the healthcare system and better water and sanitation systems throughout BiH. BiH has no partner that is more loyal and committed than the EU, whose support comes as combination of grants and favourable loans, all of which help to improve living conditions, and economic development on the path to the EU.”
With these new investments, EIB Global’s lending for BiH to date has reached €3.4 billion insupporting the development of vital infrastructure and small and medium businesses. Over half of this lending volume has been allocated to transportation sector (€1.6 billion), followed by investments in small and medium enterprises (€880 million), energy (close to €300 million) and water and wastewater infrastructure (€250 million).
