Securing Sarajevo’s Water Infrastructure Future with EBRD and EU Investment
Sarajevo is getting a long-overdue upgrade to its crumbling water infrastructure, and this time, the support is both deep-pocketed and green-minded. Thanks to a strategic partnership between the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), the capital city of Bosnia and Herzegovina is poised to slash water losses and extend its supply to thousands more households.
The EBRD has confirmed the disbursement of the third tranche of its project loan – an injection of €5 million – while the EU has added a fresh €3.8 million investment grant to help propel the project to the finish line. Together, these funds form a powerful financial anchor in a total €25 million project that is part of the EBRD’s broader Green Cities initiative.
Fixing a network in crisis
It’s not every day that a city loses nearly 70 percent of its treated water through an ageing network, but that’s been the daily reality for Sarajevo’s water utility. With crumbling pipelines, outdated pumping stations, and neglected wells, the system was haemorrhaging water, wasting energy, and failing to meet growing demand.
Enter the EBRD-backed renovation effort. More than 1,119 kilometres of the water distribution network are being rehabilitated, a massive undertaking that includes replacing corroded pipes, upgrading pumping facilities, and modernising wells. When all is said and done, some 4,000 new households will be connected to the upgraded system.
Elena Gordeeva, Director of the EBRD’s Infrastructure Europe Department, put it simply: “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.”
More than just a cheque
The European Union has long stood by Bosnia and Herzegovina, but this investment goes far beyond financial aid. It’s part of a larger vision for integrating the Western Balkans into the European fold, and infrastructure plays a starring role in that ambition.
Ambassador Luigi Soreca, the EU’s representative in the country, underlined this commitment: “By improving energy efficiency in public facilities and ensuring reliable access to clean water, we are helping communities live healthier, more sustainable lives… Our vision is clear: a stable and prosperous Bosnia and Herzegovina with a future in the European Union.”
On top of the EU’s contribution, bilateral donors through the Western Balkans Investment Framework (WBIF) have offered an additional €3 million in technical assistance. Meanwhile, Sweden’s SIDA has stepped in with further technical support to ensure effective implementation.
The Green Cities blueprint in motion
This isn’t Sarajevo’s first encounter with the EBRD’s Green Cities framework. In fact, since joining in 2017, the city has embarked on six projects under the programme, with some already completed and others well underway.
The initiative doesn’t just throw money at problems. Instead, it delivers structured investment strategies tailored to local needs, aiming to enhance urban resilience and cut carbon emissions.
In Sarajevo, that’s translated into multiple benefits:
- Revamping the public transport system
- Retrofitting public buildings for energy efficiency
- Modernising waste and water systems
Water infrastructure is just one piece of the puzzle, but arguably the most urgent. With climate volatility increasing and urban populations expanding, a reliable and efficient water supply is fast becoming non-negotiable for any city with long-term ambitions.
A regional ripple effect
Sarajevo isn’t going it alone. The EBRD has also supported water network improvements in other cities across Bosnia and Herzegovina, including Banja Luka, Gradačac, and Brčko. These projects follow a common blueprint: assess the damage, prioritise efficiency, invest in green tech, and build long-term resilience.
These investments have the potential to spark a domino effect across the region. Municipalities that prove the value of such upgrades not only improve quality of life for residents but also enhance their appeal to investors, developers, and institutional donors.
Moreover, the success of Sarajevo’s water project could provide a compelling model for other Balkan cities struggling with similar challenges.
Why this matters for construction and infrastructure stakeholders
For construction professionals, policymakers, and industry investors, this project presents a textbook example of how green financing and smart urban planning can dovetail to produce real, measurable outcomes.
Key takeaways:
- EBRD and EU investments are helping rebuild critical infrastructure across the Balkans
- The integration of technical assistance ensures better project outcomes
- Green Cities projects create demand for skilled labour, modern construction techniques, and environmentally friendly materials
This isn’t just a story about pipes and pumps. It’s a story about forward-thinking investments, multilateral cooperation, and the evolution of urban systems in emerging economies.
A brighter outlook for Sarajevo
As the final phase of this water infrastructure overhaul gets underway, Sarajevo finds itself at a turning point. Decades of underinvestment are being replaced with forward momentum, and the capital is being positioned as a future-ready city with improved services and greener foundations.
Whether it’s turning on the tap or planning new developments, Sarajevo’s residents and businesses will soon feel the benefits of infrastructure that actually works. For a region often marked by setbacks and slow progress, this project offers a much-needed success story.
It’s also a reminder that when institutions like the EBRD and EU align their vision, and when cities are ready to take the leap, the results can be transformative.
