EBRD provides €15 million loan to Kragujevac - Funds to be used for municipal infrastructure and city traffic modernization

The European Bank for Reconstruction and Development (EBRD) isextending a senior loan of up to €15 million to Kragujevac for modernization ofmunicipal infrastructure and city traffic in Kragujevac, it was stated in EBRD’sannouncement delivered to Tanjug.

The loan will be paid in two tranches where first tranche of up to €10 millionwill support the procurement of new solid waste bins, containers and wastecollection trucks as well as new streets construction and refurbishment works.The second tranche of up to €5 million will be used for financing theconstruction of a new city bus terminal, it was stated in the announcement ofcreditor from London.

Kragujevac, an important industrial and trading center inSerbia, is in critical need to modernize its municipal infrastructure andimprove the sustainability of its services, such as an outdated wastecollection system, poor road quality and lack of safe bus stations.

With this loan the EBRD is addressing these challenges and alsosupporting the city in finding opportunities to increase private sectorparticipation in municipal projects.

Total grant funded post-signing support will be provided in anamount of €840,000 including funding to support the preparation of tenderdocuments and the tendering process which has been provided by Germany.

“We are pleased to help Kragujevac improve its sustainabilityand environmental performance, which will have a direct effect on people’slives. The project is expected to provide important environmental and publichealth and safety benefits by upgrading the road infrastructure, constructing anew bus terminal and improving waste collection services in line with bestinternational practice”, said Lin O’Grady, EBRD Deputy Head of Municipal andEnvironmental Infrastructure.

“We aregrateful to the EBRD for its active engagement in the municipal modernizationof Kragujevac. It is critical for the city to upgrade our waste services andimprove transport infrastructure to help boost trade and help local businessesflourish,” concluded Mayor Radomir Nikolić.

Since the start of its operations in Serbia, the EBRD has invested over €4billion in over 190 projects across the country. The Bank invests in thefinancial sector, industry, commerce, agribusiness, energy and infrastructure.

EBRD Evropska banka za obnovu i razvoj Beograd

Grad Kragujevac

European Bank for Reconstruction and Development

EBRD

bus station Kragujevac

infrastructure projects Kragujevac

Radomir Nikolic