Banja Luka is the administrative capital of the Republika Srpska entity in Bosnia and Herzegovina with a population of 230,000 residents. The project aimed to combat problems in the city of Banja Luka regarding high losses in the present water supply system and the lack of adequate sewage collection. Currently, 80 % of residents have access to piped water. Furthermore, only about 50% are connected to a sewer system. Frequent leaks and pipe bursts in the transmission and water supply distribution system are attributable to both the age and quality of the existing networks. The discharge of untreated sewage into the Vrbas river poses a risk to the drinking water quality of the inhabitants of the City and harms the environment of Banja Luka.
The project objective consisted in achieving a reduction of environmental pollution of the river Vrbas close to the water capture in Novoselja, the improvement of the water supply in the City of Banja Luka as well as the improvement of the sector management capacities of the municipality and the waterworks.
The expected impact of the project is measured by the following indicators defined in the delegation agreement:
The total value of the project, approximately EUR 19.1 million, was made up of EU (IPA and WBIF funds totalling EUR 4.5 million) and KfW funds (EUR 4 million grant and EUR 10 million loan) as well as contributions from the Banja Luka authorities (EUR 600,000). Part of the EU funds were allocated through the EU IPF Municipal Window programme in the form of a EUR 2 million grant for consultancy services related to the preparation of final design and tender documents and for investment measures.
The project had two components: the construction and improvement of the water supply system, which started in April 2012, and the repair and construction of the sewerage collection system, which started in June 2012 and for which EU funds were used. The water supply component was completed in December 2015 and the sewage component in December 2014.
The beneficiaries of the project are the Banja Luka waterworks company, VODACOM and the city. Moreover, all the inhabitants of Banja Luka will benefit from the investments, as the water resources of the City are protected through the wastewater collection component of this project. In addition, new communities will benefit from the new connections to the water supply network.