Regional Broadband Infrastructure Development

Gradacac Water Supply Project

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Project Financing

WBIF Grant WB-IG03-BIH-ENV-03 € 2,667,460
EBRD Loan € 6,000,000
Sida External Grant € 2,300,000
Czech Development Agency External Grant € 1,000,000
National Contribution Own Contribution € 4,988,000
Total € 16,955,460
Total Grants € 2,667,460
Total Loans € 6,000,000

Project Description

The water system and networks in Gradacac are largely comprised of pipes that were installed during the industrial development era in the 1970-80s. These are built up of several types of material (e.g. steel, asbestos cement pipes), and some of the pipes have an inadequate profile and are of poor quality. Water losses from these networks are high at over 50%, indicating the poor state of the distribution systems. Similarly, access and connections to the public sewage network is still a challenge: the network is insufficiently spread and the wastewater treatment plant (built in 1982) required immediate rehabilitation efforts.

These poor conditions emphasise the necessity to refurbish the water and wastewater networks, as well as the water and wastewater treatment plants in the project area. In order to address the aforementioned problems, the local municipality initiated the ‘Gradacac Water Supply Project’.

Due to the high investment needs and a lack of available funds, the infrastructure project has been divided into four components, as seen below:

  • Component I: Reconstruction of the existing water supply facilities and network in the City of Gradačac (central urban area) – subject of the WBIF Grant;
  • Component II: Reconstruction and expansion of the sewerage system;
  • Component III: Expansion of the water supply network in southern part of the municipality;
  • Component IV: Reconstruction of the Wastewater Treatment Plant.

The €2.1 million investment grant from the WBIF will be used for Component I to replace the existing asbestos pipes and for improving the insufficient capacity of the water supply system (approx. 35 km). 


Start of Works on the Water Supply System in Gradačac, Bosnia and Herzegovina

Results and Benefits

  • Rehabilitation of the water supply network – up to 40 km
  • Construction of the water supply network – around 105 km
  • Construction of the sewage network – approx. 40 km
  • Rehabilitation of the WWTP
  • Improve the quality of life for approx. 34,000 inhabitants;
  • Improve the hygienic and the health conditions in the project area;
  • Provide adequate water and sewerage services at accessible tariffs for the population;
  • Reduce water losses from an average of 50% to 40%;
  • Improve conditions for economic development in the area of Gradacac Municipality
  • Countries: Bosnia and Herzegovina
  • Code: PRJ-BIH-ENV-017
  • Sector: Environment
  • Lead IFI: EBRD
  • Status: Implementation
  • Beneficiary:
Project financing split

Partner Financial Organisations

Western Balkans Partners