Novi Sad is preparing procurement for a €33.5 million regional waste-management programme, combining European financing with municipal funding for landfill remediation, recycling infrastructure and wider system upgrades. Procurement is expected to begin in October and will cover construction, equipment and consultancy services required for the regional waste-management system. The programme includes the remediation and closure of up to 13 unsanitary municipal landfills, alongside the development of recycling infrastructure and improvements to the broader regional waste system.
European financing covers most project costs
Funding comprises a €9.6 million loan from the European Bank for Reconstruction and Development, a €20.4 million grant from the EU Western Balkans Investment Framework and approximately €3.53 million from Novi Sad. European and international financing therefore accounts for close to 90% of the programme, limiting the direct financial burden on the municipal budget. The financing structure combines concessional or long-term bank funding with substantial grant support and local co-financing. It also brings procurement, environmental and reporting requirements associated with European financing.
Procurement spans construction, equipment and consultancy
The programme is expected to generate opportunities across Serbia’s engineering and environmental-services sectors. Civil works will be required for landfill remediation, recycling facilities and related infrastructure. Equipment suppliers could participate in the provision of waste collection, sorting and processing systems, while consultants will be involved in project management, environmental monitoring and technical supervision.
Municipal environmental projects could therefore become more relevant to companies that have traditionally concentrated on roads, buildings and conventional utility infrastructure. Serbia continues to have a large number of unsanitary or non-compliant waste sites, while recycling rates remain below levels required under European environmental policy. Addressing those gaps will require a multi-year programme of projects rather than individual investments.
EU grants alter municipal investment requirements
The €20.4 million EU grant represents a substantial share of the total programme cost and reduces the amount Novi Sad would otherwise need to finance through municipal borrowing or other public funding. Grant financing can facilitate projects with significant public and environmental benefits but limited direct financial returns by covering part of their capital requirements. The financing model also places greater importance on municipalities having technically prepared projects, including feasibility studies, environmental documentation, land arrangements and procurement packages, to access European and international financing.
Waste infrastructure has wider economic implications
Waste management increasingly affects areas beyond environmental policy, including industrial permitting, municipal operating costs, land use and the ability of cities to attract investment. Manufacturers also face greater requirements from European customers to demonstrate recycling, material efficiency and environmental compliance across supply chains. Improved collection, sorting and recycling systems can support secondary raw-material markets and create business opportunities in plastics, metals, construction waste and circular-economy services.
Environmental projects broaden Serbia’s infrastructure market
The Novi Sad programme is smaller than Serbia’s major motorway and railway investments, but its financing structure reflects a broader category of infrastructure spending. Wastewater treatment, waste management, energy efficiency and other municipal environmental projects require substantial capital as Serbia moves towards European environmental standards.
This creates opportunities for a wider range of engineering companies, equipment suppliers, environmental consultants and specialist operators alongside major infrastructure contractors. For Novi Sad, the investment centres on landfill closure and upgrades to the regional waste system, while the programme places EU-backed environmental infrastructure into a recurring procurement framework.
