Infrastructure and Energy Efficiency in Bosnia and Herzegovina
In a move to bolster infrastructure and energy efficiency in Bosnia and Herzegovina, the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) have announced substantial financial support for two pivotal projects in Tuzla Canton and Sarajevo.
Energy Efficiency in Tuzla Canton
The EU and the EBRD, through the Western Balkans Investment Framework, are providing a €10 million financing package to improve energy efficiency in public buildings across Tuzla Canton, the largest canton in Bosnia and Herzegovina. This investment includes an €8 million loan from the EBRD and a €2 million grant from the EU through the Regional Energy Efficiency Programme (REEP). The project aims to refurbish and implement energy-efficiency measures in up to 173 public buildings, including schools, health centres, administrative buildings, and sports halls.
Key improvements will include thermal insulation of walls, roofs, and ceilings, replacement of windows, and upgrades to heating systems and lighting. These measures are expected to significantly reduce energy and maintenance costs, lower greenhouse gas emissions, and improve comfort levels in the buildings.
Elena Gordeeva, Director of the EBRD’s Infra Europe department, expressed her enthusiasm: “Improving the energy efficiency of buildings is one of our priorities in Bosnia and Herzegovina. These projects not only help improve environmental standards but also support the local economy by creating jobs and opportunities in the construction sector.”
The EU's Regional Energy Efficiency Programme (REEP), launched in 2013 in cooperation with the EBRD and German development bank KfW, has been instrumental in financing energy-efficiency measures across the Western Balkans. To date, the program has financed improvements in 34,000 households and 540 public buildings across the region.
Water Supply Network in Sarajevo
In Sarajevo, the capital city of Bosnia and Herzegovina, the EBRD and the EU are financing the renovation of the water supply network with a €3.8 million EU-funded grant, complementing the EBRD’s €25 million loan. Bilateral donors to the Western Balkans Investment Framework (WBIF) have provided a €3 million investment and technical assistance grant, while Sweden has contributed further funds for technical assistance through its Swedish International Development Cooperation Agency (SIDA). This project is crucial for improving the water supply and reducing water losses in the city.
The extensive reconstruction and optimisation of the outdated water distribution network will include the replacement or overhaul of ageing pipelines, pumping stations, and wells. By the project's completion, 1,119 kilometres of the water distribution network will have been reconstructed, significantly reducing the current 70% water loss rate and connecting about 4,000 new households to the network.
EU Ambassador Luigi Soreca emphasised the EU's commitment: “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 a 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.”
Elena Gordeeva highlighted the importance of this project: “Helping to improve the water supply is an important part of our work in Bosnia and Herzegovina. We are grateful to the EU for co-financing this investment, which will help Sarajevo Canton solve one of its most urgent problems.”
Broader impact and support
These investments are part of the broader Western Balkans Investment Framework. The WBIF is the main vehicle for the implementation of the Economic and Investment Plan for the Western Balkans 2021-2027 which directly contributes to Global Gateway - the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. The initiative aims to mobilise up to €300 billion in investments worldwide. Through a 'Team Europe approach', Global Gateway will bring together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.
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