€25 million EBRD loan for new tram line in Sarajevo

• Loan to improve urban transport in Sarajevo Canton  
• Project part of the EBRD Green Cities framework
• Financing brings total EBRD support for Sarajevo Canton to €170 million

The European Bank for Reconstruction and Development (EBRD) is stepping up its support for greener transport in Sarajevo Canton with a €25 million sovereign loan for the construction of a new tramline.

The new line will be around 13 kilometres long and connect the town of Ilidza with the neighbourhood of Hrasnica. The investment will include the construction of a tram turning area in Hrasnica and 20 new tram stations along the route. The new tram tracks will be connected to the existing network, enabling a more efficient commute for the citizens of Sarajevo.

The loan was agreed during a visit by EBRD President Odile Renaud-Basso to Bosnia and Herzegovina. President Renaud-Basso said: “We are delighted to have supported so many investments that will help improve environmental conditions and the standard of living in Sarajevo, including this new investment in urban transport. This project will also direct the development of the Canton towards flat areas, away from the surrounding hills that are potentially subject to landslides. We stand ready to provide further support to the Canton and to Bosnia and Herzegovina for investments that can make its municipal services and economy greener, more efficient and competitive.”

This project will expand the existing tram-track network by around 50 per cent and unlock the urban development of this part of Sarajevo. The new tramline will help reduce traffic congestion in the Canton by encouraging more people to shift from cars to better and more efficient urban transport. The shift to a more eco-friendly mode of transport is also expected to lead to a reduction in greenhouse gas emissions.

This investment in the public transport system is the seventh under the EBRD Green Cantonal Action Plan for Sarajevo. The Bank previously extended financing to Sarajevo for the reconstruction of existing tram tracks and the purchase of new trams and trolleybuses. It is also supporting the Canton in upgrading its water supply network and improving the energy efficiency of public buildings.