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Sarajevo Times > Blog > BUSINESS > The Water Supply System Of CS Is One Of The Most Complex In The Region
BUSINESS

The Water Supply System Of CS Is One Of The Most Complex In The Region

Published October 26, 2025
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With an investment implemented with the support of the European Union (EU) and the European Bank for Reconstruction and Development (EBRD), around 4.000 households in the Canton Sarajevo (CS) area will soon be connected to the renewed water supply system. The project of reconstruction and optimization of the outdated water supply network is entering its final phase and includes six municipalities of the CS. The total value of the EU grant amounts to 3.8 million euros, while the entire project is also financed through an EBRD loan of 25 million euros.

According to the words of the director of the Cantonal Public Utility Company Water Supply and Sewerage Sarajevo, Adnan Serak, this is a joint project of the Government of the CS and Water Supply and Sewerage, which is being implemented through three tranches of the EBRD loan and with the support of EU grant funds.

“The Government of the CS has taken out a loan through the EBRD, that is, the World Bank. It is a joint project of the government and Water Supply and Sewerage, where the debt was made toward the World Bank and the EBRD. Through all three tranches, including the third one planned to be implemented next year, about 60 kilometers of the water supply network will be replaced,” Serak said.

Serak stated that EU practice requires replacing around five percent of the network annually, which in the case of Sarajevo would mean about 50 kilometers yearly, but that this is financially and technically unfeasible in local conditions.

“The two completed EBRD tranches have stabilized the system, and the current losses in the network are around 63-64 percent, while the figure of 71 percent is the result of administrative and calculation differences, including illegal consumers. During reconstruction in the second tranche, we found a large number of illegal connections,” Serak said, adding that the Water Supply and Sewerage company is actively working on establishing order through the elimination of multiple connections and the installation of individual water meters.

He emphasized that the first two tranches of the EBRD loan, each worth ten million euros, have already been used, while the third tranche, worth five million euros, is ready for implementation.

“Through this project, about 60 kilometers of the network have been reconstructed. After completing the third tranche, we expect further reduction of losses. At the same time, we are preparing new projects in cooperation with municipalities, which will additionally contribute to the renewal of the network. It is difficult to estimate how much we will reduce losses after carrying out all three tranches, because around 800 kilometers of the network currently need reconstruction in Sarajevo. That is a lot of kilometers, and when we replace 60 out of 800, we cannot expect a big shift,” Serak added.

As stated by the Delegation of the EU in Bosnia and Herzegovina (BiH), reliable access to safe drinking water is a key element of public health, sustainable development, and social stability, and precisely these represent priorities of EU enlargement and neighborhood policies.

“The EU continuously supports BiH in its efforts to align with the EU acquis and environmental protection standards. The total EU support includes strengthening institutional capacities and infrastructural investments, primarily in the area of water and waste management,” stated the Delegation of the EU.

The EU grant funds in the amount of 3.8 million euros will contribute to the improvement of water supply services in six municipalities of the CS.

The EU grant represents a supplement to the EBRD loan of 25 million euros, with the aim of ensuring long-term sustainability of the project and alignment with European standards.

The EU Delegation reminds that ratification of the grant agreement between the EBRD and the CS is still ongoing, and that implementation of the part financed with EU funds will begin upon completion of that process.

“The investment represents a strategic step toward improving public infrastructure and contributes to the goals of the Green Agenda for the Western Balkans, promoting efficient use of resources and resilience to climate change. The EU and the EBRD will jointly monitor project implementation through field visits, technical audits, and progress reports,” it is stated.

According to information from the EBRD, the project of reconstructing the water supply network in Sarajevo is part of the EBRD’s ‘Green Cities’ initiative.

The key benefits of the project are reflected in the increase of energy efficiency, reduction of water and CO2 emissions, and optimization of the operation of pumping stations and the water supply system, Fena writes.

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