The Ministry of Transport of the Canton of Sarajevo has signed a contract with Stadler Rail for the purchase of 15 trams.
These new trams will replace the current obsolete fleet.
Entities that were present at the signature ceremony include representatives of the local government, the Swiss embassy, Stadler, the European Investment Bank (EIB), and European Bank for Reconstruction and Development (EBRD).
EIB and EBRD are providing financial aid for the execution of the project, which aims to enhance the urban transport network in the Canton of Sarajevo.
The improvement will take place through the modernisation of the tram and trolley bus networks, the replacement of current vehicles, as well as the construction of new roads.
The EIB has so far allocated $47.39m (€40m) under favourable terms in this year to facilitate this operation.
The project is expected to address several issues in the region, including air pollution, traffic congestion, and safety.
By improving public transportation and making it more efficient and reliable, the people will be able to frequently use public transport modes.
The EIB representative for Bosnia and Herzegovina and Montenegro Sandrine Friscia said: “New trams will help reduce commuting times and the number of traffic accidents, thus improving living conditions for everyone. At the same time, they will lower the level of noise and pollution in the city, which will bring us closer to fulfilment of the EU Strategy for the Western Balkans and the EIB climate goals.
“As the EU climate bank, we want to help the region shift to more sustainable transport options, resulting in a cleaner environment and the capability to mitigate climate changes more efficiently.”
As of now, the EIB has invested nearly $1.9bn (€1.6bn) in the modernisation of transport infrastructure in Bosnia and Herzegovina.
In May this year, the EIB signed a $182m (€150m) finance contract with the Indian Government for the Pune Metro Rail project’s second portion in Maharashtra through a virtual signing ceremony.