Canton of Sarajevo takes on an additional 22 million euros in debt

(Patria) - The Government of Canton Sarajevo (KS) has adopted a Decision on accepting the debt under the Loan Agreement between BiH and the International Bank for Reconstruction and Development (IBRD) for the project "Improving Air Quality" in the total amount of 22.7 million euros.

The repayment period is 31.5 years, with a grace period of eight years. The initial fee is 0.25 percent annually, and the loan servicing fee is also 0.25 percent annually. The agreement between BiH and IBRD was signed on November 22, 2023, writes Istraga.

The project implementation consists of four components: 1) strengthening air quality monitoring and management; 2) supporting the improvement of heating and energy efficiency in individual houses in a sustainable manner; 3) green urban mobility to support the transition of the transport sector towards low emissions; and 4) support for project implementation.



The Ministry of Communal Economy, Infrastructure, Spatial Planning, Construction and Environmental Protection of KS is responsible for the implementation of components 1, 2, and 4, and partially for component 3, related to the planned establishment of a Low Emission Zone in the central part of the city, where the movement of vehicles with older Euro standards will be restricted, in the amount of up to 13.5 million euros.

The Ministry of Transport of KS is responsible for the implementation of component 3, in the amount of 9.2 million euros.

As stated in the decision, the purpose of the project is improved air quality monitoring, analysis and dissemination of data to inform about the project and other activities, reduction of air pollutant emissions from residential building heating systems, reduction of urban pollution by providing low-emission public transport vehicles and expanding the use of bicycles and increasing awareness of air pollution choices and their impact on health.