Serbian Climate Resilience & Irrigation Programme SCRIP

repaying

Provision of a sovereign loan to the Republic of Serbia (the "Client") in an amount of EUR 48 million to finance the construction and rehabilitation of critical irrigation infrastructure in three distinct regions of Serbia: Negotin (Eastern Serbia), Svilajnac (Central Serbia) and Vojvodina (Northern Serbia). The investments will be financed from an initial loan to the Republic of Serbia in the amount of up to EUR 30 million and Loan Extensions totalling EUR 18 million (to be signed in 2023). Financing of the Programme is split into two phases: (i) Loan I (for investments in Negotin and Svilajnac) of up to EUR 15 million, which was signed in December 2019 and which will be completed by a Loan Extension of EUR 10 million, and (ii) Loan II (for investments in Vojvodina) of up to EUR 15 million, which was signed in 2021 and which will be completed by a Loan Extension of EUR 8 million. The Programme is being implemented by two Public Water Management Companies ("PMWC"), PMWC Srbijavode for Loan I and PMWC Vode Vojvodine for Loan II, in coordination with the Ministry of Agriculture, Forestry, and Water Management ("MAFWM"), and respective municipalities. The Loan Extensions are required to cover (i) recent material costs' increase that have negatively impacted the total investment cost, and (ii) project preparation for the Pambukovica dam, a critical infrastructure investment to ensure flooding protection and which, at later stage, will serve irrigation purposes. The Programme also entails continuation of policy dialogue with the MAFWM by assisting in preparation of the country's first Irrigation Strategy and a five-year Action Plan.