25 Million Euro Loan from EBRD for New Tram Line in Sarajevo

The European Bank for Reconstruction and Development (EBRD) is increasing its support for greener transport in the Sarajevo Canton by giving a 25 million Euro government loan for the construction of a new tram line.

The new line will be approximately 13 kilometers long and will connect the Ilıca district to the Hrasnica neighborhood. The investment will include the construction of a tram return area in Hrasnica and 20 new tram stations along the route. The new tram lines will connect to the existing network, providing a more efficient transport for the citizens of Sarajevo.

The loan was accepted during the visit of 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 living standards in Sarajevo, including this new investment in urban transport. This project will also redirect Canton's development into flat areas away from the surrounding hills potentially subject to landslides. We are ready to give more support to Canton and Bosnia and Herzegovina for investments that can make municipal services and economy greener, more efficient and more competitive.”

This project will expand the existing tram line network by approximately 50 percent and pave the way for the urban development of this part of Sarajevo. The new tram line will help reduce traffic congestion in Canton by encouraging more people to switch from cars to better and more efficient urban transport. The shift to a more environmentally 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's Sarajevo Green Canton Action Plan. The bank has previously provided Sarajevo with financing for the reconstruction of existing tram lines and the purchase of new trams and trolleybuses. It also supports Canton in improving the water network and improving the energy efficiency of public buildings.