European Bank For Reconstruction And Development Approves €66 Million Loan For Pambukovica Dam To Reduce Flood Risks And Improve Water Security In Serbia

The European Bank for Reconstruction and Development (EBRD) is supporting Serbia in improving its ability to manage climate risks, reduce flooding, and secure long-term water resources through the Pambukovica dam project. This project represents a major investment in sustainable water infrastructure in western Serbia.

To support this initiative, the EBRD is providing a sovereign loan of up to €66 million to the Republic of Serbia. The project involves building and operating a multipurpose dam and reservoir near the village of Pambukovica, located in the Kolubara River basin, an area that is highly vulnerable to flooding.

The dam is expected to play an important role in reducing flood risks in the region. The Kolubara River basin has faced repeated extreme weather events, including the severe floods of 2014, which caused significant damage to homes, farmland, and infrastructure. By controlling water flow and storing excess water during heavy rainfall, the dam will help protect communities, agricultural land, and critical infrastructure from future flooding. The project has been designed as a modern and climate-resilient solution. In its initial phase, the focus will be on flood control and managing river flow. However, the dam has also been planned to support future irrigation systems.

Once the reservoir is fully developed, it is expected to provide irrigation for more than 2,200 hectares of farmland. This will help farmers better cope with drought conditions and unpredictable rainfall, improving agricultural productivity and long-term resilience. In addition to flood protection and irrigation, the project will include measures to maintain ecological balance.

These include managing water flow to support river ecosystems, controlling sediment levels, and improving overall water quality. Such efforts will contribute to healthier natural environments and more sustainable land use across the wider region.

Jelena Čeperković, Deputy Director of the EBRD for Serbia, described the project as a strategic investment that not only strengthens flood protection but also supports sustainable agriculture and long-term water management. She highlighted that the project will help communities adapt to climate change while delivering lasting environmental and economic benefits.

Goran Puzović, CEO of Srbijavode, emphasized that the dam will significantly reduce flood risks in a region that has been repeatedly affected by extreme weather events. He also noted that the project will support irrigation development, improve water quality, and enhance resilience to climate change.

He reaffirmed Srbijavode’s commitment to developing modern and sustainable water infrastructure in partnership with the Serbian government and international institutions. The EBRD remains a key investor in Serbia, having invested more than €10.8 billion across 407 projects in the country. Its main areas of focus include strengthening the private sector, advancing the green economy, and supporting the development of sustainable infrastructure.