KfW bank invests EUR 4.5 million in Jagodina's water supply

KfW bank invests EUR 4.5 million in Jagodina's water supply

The KfW bank from Germany will invest EUR 4.5 million in a project in Jagodina, central Serbia, which was started in late 2013 and is meant to improve the water supply and sewage infrastructure.

"Twenty kilometres of cement and asbestos pipes will be replaced in Jagodina, together with reconstructing Izvoriste in Ribar and building three new wells that will have a capacity of 90 l of water per second," head of Jagodina's public utility company Dragan Lukic has told reporters.

The project is conducted by Serbia and Germany and is entitled Water Supply and Sewage in Medium-Sized Municipalities in Serbia. It was started in autumn of 2013 and includes Jagodina, Vranje, Leskovac, Aleksinac, Pirot and Trstenik.

The project is worth a total of EUR 25 million.

The reconstruction of the filtration centre will begin at the end of the year, with 95 percent of the funding coming from the German government, Lukic pointed out.

Jagodina will get 30 percent of the funds from KfW as a grant, while the rest will be repaid in 15 years with a minimum interest and a grace period of three years, Jagodina Mayor Ratko Stevanovic stated.

The bank has also given Jagodina a subsidy of EUR 1,379,306 to rebuild one of the main heating pipes in the town and modernize the local heating plant, a work already in progress.