The €66 million loan will support the construction of the Pambukovica dam, a key project designed to reduce flood risks and improve water management in vulnerable regions. The initiative is part of broader efforts to enhance climate resilience and protect communities from increasingly frequent extreme weather events.
In addition to flood prevention, the project is expected to contribute to sustainable regional development by improving infrastructure and supporting long-term environmental stability.
Authorities highlight that modernizing water management systems is becoming an urgent priority as climate-related risks intensify.
The investment reflects continued cooperation between Serbia and international financial institutions, with the European Bank for Reconstruction and Development playing a central role in financing strategic infrastructure projects across the country.
