KfW Projects in Serbia
Water supply and wastewater treatment in Serbian cities/Program for efficient water supply and wastewater treatment for green cities in Serbia – Program VI and VII (wastewater)
Donor: Federal Ministry for Economic Cooperation and Development (BMZ)
Partners: Ministry of Construction, Transport and Infrastructure
Project period: 2018 – ongoing
Challenges
- 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.
Approach
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 comprises major investments in collectors and wastewater treatment, particularly in the construction of wastewater treatment plants (WWTPs) and the reconstruction and expansion of the sewerage network, the construction of solar sewage sludge drying units, and the construction of solar power plants within the WWTP sites.
Results
- The Program covers 8 municipalities – Jagodina, Požarevac, Pirot, Trstenik, Kikinda, Vranje, Kruševac, and Vršac.
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Phase I (the preparation phase) has now been completed. Phase II (the investment phase) begins in June 2026 in 4 municipalities (Jagodina, Požarevac, Pirot, Trstenik) under Program VI, while investments in the remaining 4 municipalities, as well as the expansion of the investment scope from Program VI, are expected at the end of 2026 under Program VII.
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In 5 municipalities, investments will be implemented in centralized wastewater treatment plants (WWTPs), solar sludge drying units, and the rehabilitation/extension of the sewerage network, as well as solar power plants at the WWTPs.
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In the municipality of Vršac, the rehabilitation/upgrading of the stormwater drainage network will be carried out.
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In the municipalities of Kruševac and Vranje, the construction of solar power plants at the existing WWTPs will be implemented, along with the construction of a sludge drying unit (Vranje).
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Due attention has been paid to energy-efficient and innovative technological solutions that will contribute to energy savings and the utilization of renewable energy sources.
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A contribution will be made to EU accession and the implementation of European standards in the wastewater sector.
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So far, the public utility companies (PUCs) have started introducing cost-covering tariffs, including a minimum budget per household connection for system maintenance.
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The PUCs have increased fee collection efficiency and are improving their business performance through the support of the Technical Assistance Consultant provided within the program.

