- EU bank to provide substantial financing for projects in water and sanitation, sustainable mobility and healthcare in Bosnia and Herzegovina
- As part of the EU’s Economic and Investment Plan for the Western Balkans, the funds will improve the country’s urban mobility and its resilience to economic and climate challenges
- With these investments, EIB Global’s lending to BiH has to date reached €3.4 billion in supporting vital infrastructure and small and medium enterprises (SMEs)
EIB Global, the arm of the European Investment Bank (EIB) for activities outside the European Union, will invest €116 million as an overall financial package for the development of sustainable mobility, water and sanitation infrastructure and the healthcare facilities in Bosnia and Herzegovina. €75 million loan will go into the rehabilitation and extension of existing healthcare units and the construction of a new medical campus at the University Clinical Centre of Banja Luka. The project will enable better healthcare services and skilled human resources to strengthen the healthcare system’s resilience and response to future emergencies.
€35 million will be invested in the Sarajevo urban transport project to enable the modernization and extension of the tram and trolley bus networks. This will add to the €40 million already lent since 2021, bringing the total EIB investment to €75 million. Thanks to EIB Global financing for this project, the country’s capital will benefit from reduced traffic congestion and air pollution, increased safety and convenience of the public transport system.
Along with these loans, EIB Global has also signed a €6 million EU grant agreement channeled through the Instrument for Pre-Accession (IPA) for the extension of water supply, sewage collection and wastewater systems in some 20 municipalities in all parts of BIH. This grant will be blended with other existing investments provided under this comprehensive water and sanitation programme, which will help reduce environmental pollution and improve access to water and sanitation services for people across the country.
EIB Vice-President responsible for the Western Balkans, Lilyana Pavlova, said: “EIB Global perceives these investments as a tremendous opportunity for the country to improve the sustainability of infrastructural capacities across different sectors. This will increase resilience to climate change and economic shocks and elevate the living standard for people in BiH. In addition, the development of these vital projects is being done in line with the EU practices and the Economic and Investment Plan for the Western Balkans, taking into account the concrete needs and ensuring lasting benefits for local communities.”
EIB Global delegation met yesterday with the Chair of the Council of Ministers Borjana Krišto in Sarajevo to mark the signature of the financial package. As stated by Ms Krišto, BiH remains committed to European integration and regional processes, the foundations of which are communication connectivity and structural adjustment. “BiH needs to continue and strengthen cooperation with the EIB further, whose core mission are those processes. The EIB is one of the most important development partners of the country in terms of the number of invested loans and grants in local and regional development projects of public interest.”, she underlined.
Head of the EU Delegation and EU Special Representative in BiH, Ambassador Johann Sattler, said: “These considerable funds are more evidence that we deliver on our promises. They will make a concrete and positive difference for BiH citizens in the form of sustainable transport, improvements to the healthcare system and better water and sanitation systems throughout BiH. BiH has no partner that is more loyal and committed than the EU, whose support comes as combination of grants and favourable loans, all of which help to improve living conditions, and economic development on the path to the EU.”
With these new investments, EIB Global’s lending for BiH to date has reached €3.4 billion in supporting the development of vital infrastructure and small and medium businesses. Over half of this lending volume has been allocated to transportation sector (€1.6 billion), followed by investments in small and medium enterprises (€880 million), energy (close to €300 million) and water and wastewater infrastructure (€250 million).
Background information
About the European Investment Bank and EIB Global
The European Investment Bank (EIB) is the European Union’s long-term financing institution owned by its Member States. It finances sound investments contributing to EU policy goals. The EIB Group supports projects in four priority areas — infrastructure, innovation, climate and environment, and small and medium businesses. EIB Global is the EIB Group’s specialised arm dedicated to operations outside the European Union and a key partner of the EU’s Global Gateway strategy. We aim to support at least €100 billion of investment by the end of 2027, around one third of the overall target of Global Gateway. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local communities, companies and institutions through our offices across the world.
About EIB Global in the Western Balkans
EIB Global is one of the leading international financiers in the Western Balkans. Since 2009, the Bank has financed projects in the region totalling €10.3 billion.
About EIB Global in Bosnia and Herzegovina:
The EU bank has been active in Bosnia and Herzegovina since 1977. To date, it has invested €3.4 billion, mostly in support of the transportation sector and small and medium businesses. For more information regarding the EIB’s projects in Bosnia and Herzegovina, please refer to: