World Bank Approves Loan of USD 100 Million for Local Self Governments in Serbia

Serbia’s Local Self Governments will receive substantial support to manage sustainable infrastructure, promote equitable growth, and facilitate the green transition, thanks to a USD 100 million equivalent loan approved today by the World Bank’s Board of Directors, the WB announced.

The loan is part of USD 300 million in financing for the Local Infrastructure and Institutional Development Project (LIID), which was prepared in collaboration with the French Development Agency (AFD), the press release says.

As pointed out, LIID aims to assist the Government of Serbia in fulfilling its aspirations to deliver better infrastructure services, improve mobility, lower the carbon footprint, and increase access to economic opportunities and services for all citizens.

– This is the first World Bank project that focuses squarely on Local Self Governments in Serbia, to help them improve the quality of life of citizens – said Nicola Pontara, World Bank Country Manager for Serbia.

It is specified that the LIID Project will focus initially on the transport sector, which is the second main contributor to greenhouse emissions, the fastest growing emissions source, and a significant cause of air and noise pollution in Serbian cities.

It is expected to help Serbia achieve its goal of lowering greenhouse emissions by 9.8% by 2030 compared to 1990 levels.

LIID will finance investments aimed at improving mobility, including roads, sidewalks, bicycle lanes, public spaces, and public transport facilities.

Climate resilience and adaptation will be promoted through non-motorized transport, slope stabilization, river-bank protection, drainage works, greening of public spaces and addressing legacy pollution.

The project will also support the strengthening of urban development planning and public finance management.

Local Self Governments are expected to increase infrastructure investments by an annual 8%, ensuring fair distribution of resources, with priority on poorer and more vulnerable communities.