The EU and the European Bank for Reconstruction and Development (EBRD) are supporting the water infrastructure in Bosnia and Herzegovina (BiH) with loans totalling €9.5 million (£7.9m).
The cash will be used by the municipal public utility company JP Komunalno Čapljina to expand the water supply network in sub-urban areas and replace outdated water meters.
The project is expected to connect thousands of new consumers to the nation’s water supply systems.
Martin Schieder, Head of Operations for Economic Development, Natural Resources and Infrastructures, European Union Delegation to BiH said: “This investment will improve the reliability and quality of water supply in the municipality of Čapljina and will bring potable running water to about 2,300 households more.”
The EBRD is providing €5 million (£4.1m) while the EU is supporting the project with a loan worth €4.5 million (£3.7m).