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KfW Projects in Serbia

Water Supply and Wastewater Treatment in Medium-Sized Municipalities in Serbia – Program VI (wastewater)

Donor: Federal Ministry for Economic Cooperation and Development (BMZ)
Partners: Ministry of Construction, Transport and Infrastructure
Project period: 2018 – ongoing


  • Wastewater is discharged untreated or insufficiently treated.
  • Sewage collection systems are sometimes inadequate, non-functional and require adjustments to centralized wastewater treatment.
  • Existing wastewater treatment plants have not been developed in line with the quality of treatment required by EU directives or are nonexistent.
  • Disposed fecal and sewage sludge is not sufficiently treated.
  • The tariffs do not cover the costs and do not allow wastewater Public Utility Companies (PUC) to maintain, modernize or extend their infrastructure.


The objective is to improve the living conditions of the residents in the participating Municipalities and protect the surface and groundwater in the programme area (through securing environmentally and hygienically safe disposal and treatment of wastewater in line with the EU acquis) and thus protect the environment and also contribute to the climate change mitigation through improved energy efficiency of utility services.

The programme is carried out in two phases:

  • During the first phase the technical and design documents are prepared, and the municipalities and their PUCs have to meet certain efficiency and performance criteria in order to qualify for the second phase (performance-oriented approach).
  • The second phase involves investments in wastewater collection and treatment, in particular in the construction of wastewater treatment plants and rehabilitation and extension of the sewerage network.




  • The programme encompasses 7 Municipalities – Jagodina, Požarevac, Pirot, Trstenik, Kikinda, Smederevo and Vršac.
  • Phase I (preparartoty phase) is currently in mature stage of implementation while the Phase II (investment phase) is expected to start in 2024.
  • In 6 Municipalities investments in central wastewater treatment plants, sludge solar drying units and rehabilitation/extension of sewerage networks will be implemented.
  • In the Municipality of Vrsac rehabilitation/extension of storm water network is to be implemented.
  • Due consideration is given to the energy-efficient and innovative technological solutions that will contribute to energy savings and use of renewable energy resources.
  • Contribution to EU accession and implementation of EU standards in the wastewater sector will be achieved.
  • So far PUCs have started introducing cost-covering tariffs, including a minimum budget per house connection for maintenance.
  • PUCs have increased their fee collection efficiency and are improving their business results with the support of the Technical Assistance Consultancy provided by the programme.

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