The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is financing critical upgrades to the municipal infrastructure and urban transport in Kragujevac, the fourth largest city in Serbia.
The EBRD is extending a senior loan of up to €15 million to Kragujevac in two tranches. The first tranche of up to €10 million will support the procurement of new solid waste bins, containers and waste collection trucks as well as new streets construction and refurbishment works. The second tranche of up to €5 million will be used for financing the construction of a new city bus terminal, according to EBRD.
Kragujevac, an important industrial and trading centre in Serbia, is in critical need to modernise its municipal infrastructure and improve the sustainability of its services, such as an outdated waste collection system, poor road quality and lack of safe bus stations.
With this loan the EBRD is addressing these challenges and also supporting the city in finding opportunities to increase private sector participation in municipal projects.
Total grant funded post-signing support will be provided in an amount of €840, 000, including funding to support the preparation of tender documents and the tendering process which has been provided by Germany.
“We are pleased to help Kragujevac improve its sustainability and environmental performance, which will have a direct effect on people’s lives. The project is expected to provide important environmental and public health and safety benefits by upgrading the road infrastructure, constructing a new bus terminal and improving waste collection services in line with best international practise”, said Lin O’Grady, EBRD Deputy Head of Municipal and Environmental Infrastructure.
“I am pleased that we are able to help a municipality of more than 180,000 residents with important infrastructure investments. We have designed the project to promote private sector involvement in the provision of municipal services. Kragujevac needs improved infrastructure if it is going to continue to attract more domestic and foreign investment. This investment is a major step forward towards this goal,” added Daniel Berg, EBRD Director for Serbia.
“We are grateful to the EBRD for its active engagement in the municipal modernisation of Kragujevac. It is critical for the city to upgrade our waste services and improve transport infrastructure to help boost trade and help local businesses flourish,” concluded Mayor Radomir Nikolić.
Since the start of its operations in Serbia, the EBRD has invested over €4 billion in over 190 projects across the country. The Bank invests in the financial sector, industry, commerce, agribusiness, energy and infrastructure.