Gradačac is a small but vibrant town in Bosnia and Herzegovina, with around 40,000 people and many local businesses. It is known for its entrepreneurial spirit and agribusiness, but has struggled with an unstable and insufficient water supply. With support from the European Union(EU)ö European Bank for Reconstruction and Development (EBRD), and bilateral donors to the Western Balkans Investment Framework (WBIF), Gradačac has now extended its water network and upgraded its wastewater infrastructure.

With the support of the EU,EBRD and other donors, the city built 100 km of new water pipes, which helped increase the number of households connected to the mains supply to 80 per cent. The project also included the replacement of old asbestos pipes, considered unsafe, in the city centre, making it the first city in Bosnia and Herzegovina to completely remove asbestos pipes from its network.

The investment was financed with a €6 million EBRD loan and a €3.4 investment grant from the Western Balkans Investment Framework and Sweden.