Serbia to borrow EUR 66 million for dam near Ub – Pambukovica to be built by 2030

The Government of Serbia has adopted the Draft Law on the Confirmation of the Loan Agreement for the Pambukovica Dam and Reservoir Construction Project, which was signed with the European Bank for Reconstruction and Development. The loan is worth EUR 66 million, and the funds are intended for the construction of multipurpose water infrastructure in the Kolubara basin.

The project envisages the construction of an earthen dam on the Ub River, with an accompanying reservoir and infrastructure, with the aim of improving flood protection, developing an irrigation system and strengthening resilience to climate change. The investment concerns the area of western Serbia, primarily the territory of the Ub municipality and part of the city of Valjevo.

As stated in the documentation, the largest part of the funds, around EUR 59.7 million, will be directed to construction works, while around EUR 5.6 million is intended for consulting services, supervision and technical support for the implementation of the project. The remaining part refers to the accompanying costs, including the registration fee.

The project implementation lead will be Srbijavode, with the support of the Ministry of Agriculture, Forestry and Water Management and the financial coordination of the Ministry of Finance. A special implementation unit will be established within the project, responsible for the management, procurement and monitoring of all activities.

The loan was approved at a variable interest rate (six-month EURIBOR increased by a margin of 1%), with the possibility of switching to a fixed interest rate. Repayment begins on May 15, 2030 and will last until November 2040, through 22 semi-annual installments. The loan availability period is four years, with the possibility of extension.

One of the key objectives of the project is to mitigate the risk of floods in the Kolubara basin, which was severely affected during the 2014 floods. In addition, as stated, the reservoir should contribute to improving water quality, sediment retention and more stable water resource management.

The project is scheduled to be completed by the end of 2030, while the dam’s projected lifespan is around 80 years. As eKapija has already reported, according to the project, the Pambukovica earthen dam on the Ub River will be 30.5 meters high, while the reservoir will have a volume of 8.15 million cubic meters.

After the reservoir is built, it is planned to provide irrigation for more than 2,200 hectares of agricultural land.

I. Z.

Vlada Republike Srbije

EBRD Evropska banka za obnovu i razvoj Beograd

JVP Srbijavode Novi Beograd

Ministarstvo poljoprivrede, šumarstva i vodoprivrede Republike Srbije

Ministarstvo finansija Republike Srbije

Government of Serbia

European Bank for Reconstruction and Development

EBRD

Srbijavode

Ministry of Agriculture Forestry and Water Management

Ministry of Finance

Draft Law on the Confirmation of the Loan Agreement for the Pambukovica Dam and Reservoir Construction Project

Pambukovica village

Kolubara river basin

Ub river

Pambukovica dam

state loan

EBRD loan

construction of Pambukovica dam and reservoir

flood protection

irrigation

Pambukovica Ub