World Bank approves $100 million loan for flood recovery

The Board of Executive Directors of the World Bank Group today approved a $100 million loan for the Emergency Flood Recovery Project for Bosnia and Herzegovina (BiH), it was announced today, reports the BiH news agency Patria (NAP).

- The project's goal is to cover urgent needs and restore the functionality of infrastructure essential for public services and economic recovery in the affected areas, following the worst floods to hit the country since records began. The project has been prepared in record time in light of the difficult situation in BiH and will be focused on the areas most severely affected by these devastating floods. Preliminary estimates show that this disaster has caused the greatest damage to overall livelihoods, housing, transport, agriculture, and energy - it was stated.

Given the scale of damage caused by the floods and landslides, the project is designed to support the activities of local and entity authorities in the rapid restoration of public services to pre-flood levels. The project will also support governments' ongoing efforts towards economic recovery, particularly in the agricultural sector.

- In addition to this Project, the World Bank is also active in several other areas to provide a comprehensive support package to Bosnia and Herzegovina in its recovery and reconstruction after large-scale physical and economic devastation. The Bank is also participating in the systematic recovery needs assessment, led by BiH authorities, with support from the European Union and the United Nations. This assessment will provide a basis for effective measures to restore infrastructure and services in the affected areas. The World Bank is also considering restructuring other existing projects from its portfolio in BiH to cover reconstruction needs.

Laura Tuck, World Bank Vice President for Europe and Central Asia, stated that this Emergency Flood Recovery Project will finance key goods, such as fuel and electricity imports, and the reconstruction of local infrastructure.

- This immediate response, along with the Drina Flood Protection Project, will support economic recovery in the affected areas and help return BiH's economic growth to pre-flood levels - she said, as reported by NAP.