Serbia is set to expand investment in wastewater infrastructure after the Council of Europe Development Bank (CEB) approved a €100 million sovereign loan covering projects in 17 municipalities. The financing will support the construction, rehabilitation and upgrading of wastewater systems, with a primary focus on small and medium-sized municipalities.
An initial phase is expected to cover around 153,000 residents in eight municipalities, while the full programme could eventually benefit approximately 327,000 people across 17 municipalities. The CEB approved the programme to create a new pipeline of projects for wastewater treatment, sewerage infrastructure and municipal utilities.
Serbia treats less than a quarter of generated wastewater
Official statistics show that Serbian settlements generated approximately 300 million cubic metres of wastewater, of which only around 68 million cubic metres was treated. Approximately 232 million cubic metres, or more than three quarters of the total, remained untreated. Treatment volumes also vary considerably between regions.
Southern Serbia treated around 50 million cubic metres out of approximately 121 million cubic metres generated, while the statistical data for Belgrade recorded more than 108 million cubic metres of untreated wastewater. Reducing the gap requires investment across the entire wastewater system, including treatment plants, sewer networks, pumping stations and municipal utility infrastructure.
CEB financing adds to earlier water infrastructure programme
The new facility builds on previous development-bank financing for Serbia’s water and wastewater infrastructure. The CEB approved a separate €200 million programme loan covering water-supply systems, wastewater treatment and related infrastructure in around 60 municipalities.
That programme was expected to benefit approximately 2 million residents. The latest €100 million facility places greater emphasis on wastewater infrastructure in smaller municipalities, where local budgets have limited capacity to finance major treatment projects independently. The financing structure provides sovereign and development-bank support for projects requiring substantial upfront construction expenditure.
Wastewater projects create demand for construction and engineering
The expanding programme is generating opportunities across the infrastructure supply chain.
STRABAG has begun work on a wastewater project in Čačak worth approximately €45 million, involving the expansion and upgrading of collection and treatment systems to meet EU wastewater standards. The company is also involved in the Krnjača wastewater treatment project in Belgrade.
Further municipal projects can generate demand for civil engineering, mechanical and electrical equipment, automation, sludge treatment, environmental monitoring and operational support. Wastewater infrastructure is therefore developing alongside Serbia’s larger motorway, railway and energy investment programmes.
EU environmental standards require physical infrastructure
Serbia’s progress toward the European Union increases the importance of investment in environmental infrastructure. Wastewater compliance requires physical construction alongside regulatory changes, including new and upgraded treatment plants, expanded sewer networks and municipal utilities capable of operating the infrastructure over extended periods.
The CEB programme provides financing for part of that infrastructure requirement across the participating municipalities. The immediate programme covers wastewater systems serving 17 municipalities, with the initial phase focused on eight municipalities and approximately 153,000 residents.
