GrCF2 W2 - Brcko Water

repaying

Provision of EUR 13.0 million debt financing to permanently resolve inadequate pressure in the Brcko District water system and restore water quality in the main centralised water network. This involves the construction of an approximately 14 km long pipeline, a new pumping station and clean water storage reservoir at "Potocari" and targeted reconstruction of between 2-3km of the existing water supply network to reduce water losses (from 53.1 to around 41.6 per cent) whilst improving system integrity ("the Project"). The Bank's existing sovereign loan of EUR 6.5 million was signed in April 2022. A loan increase of EUR 6.5 million is needed to meet the higher financial offers received through the procurement process as a result of a: i)       change of technical specifications from the preliminary design (which was included in the Project's 2018 feasibility study) to the detailed design stage (finalised after project signing). ii)      cost increases reflecting inflation in BiH, up from 2% in 2021 to 14.4% in 2022). The Project is a trigger project under EBRD's Green City Framework 2 ("GrCF2") and will include technical cooperation ("TC") facilitated by the Bank for the development of a Green City Action Plan ("GCAP") to identify, prioritise, and address environmental challenges through a multi-sector approach.