Strategic Moves - Regional Environmental Center for Central and ...

BOX 21: Case study — Environmental project in SEE supported by the EIB in 2008
The rehabilitation and construction of water and sanitation facilities
grants to facilitate development projects. In order to be financed, all project applications
are required to have defined financial and environmental goals in line with country
strategic documents and recognised as a priority by the national government.
At the end of 2008, the WB launched a number of initiatives to help weaker developing
countries to deal with the consequences of the financial crisis. The Infrastructure
Crisis Facility (ICF), established by several IFIs, will help to ensure that
viable, privately funded infrastructure projects facing temporary liquidity problems
due to limited private participation will get access to funding regardless of the
financial crisis. This facility will comprise a loan funding trust, an equity facility and
an advisory facility (EC, 2009). The ICF will provide USD 300 million to the
fund and additional funding is expected from other IFIs and national governments.
In SEE, WB lending focuses on urban infrastructure improvements with a specific
emphasis on water supply and wastewater treatment, solid waste management,
district heating, transportation, and increased public sector energy efficiency. Funding
is also directed towards general environmental protection and natural resources
management in environmentally sensitive areas and coastal zones.
General observations
• Under EU IPA assistance, which replaces previous pre-accession mechanisms,
special emphasis is given to institution building, strengthening the capacities
and structures needed for the management of pre-structural funds, and the financing
of infrastructure investments.
C H A P T E R 7
F I N A N C I N G E N V I R O N M E N TA L I N F R A S T R U C T U R E I N V E S T M E N T S
The EIB is lending EUR 60 million for the implementation of water and sanitation projects in the municipalities
and cantons of the Federation of Bosnia and Herzegovina. The main objective of the project is to improve the
quality of life of the country’s citizens and to meet Bosnia and Herzegovina’s needs regarding future compliance
with EU environmental legislation.
The EIB loan will finance an investment programme for water management in 15 towns, which will result in the
improvement and expansion of water supply and sanitation systems and the construction of wastewater treatment
facilities.
The EIB loan will cover up to 50 percent of the total costs of the planned projects, which will be co-financed by
the budget of the Federation of Bosnia and Herzegovina, the country’s municipalities and cantons, and the IPA.
The remaining funds will be provided by the EBRD and the World Bank, representing another example of the
good coordination and cooperation among all three IFIs in SEE.
Project preparation in a number of towns is already in progress, assisted by grants provided by the EU under the
Environmental Project Preparation Facility. Some of the required feasibility studies have already been completed
in cooperation with the municipal authorities and internationally experienced consultants — for example in Velika
Kladusa, Orasje and Bosanski Petrovac.
S T R AT E G I C M O V E S 173