BAKU, Azerbaijan, April 15. The European Bank for Reconstruction and Development is supporting Serbia in strengthening climate resilience and improving long-term water security through the Pambukovica dam project in western Serbia, a major investment in sustainable water infrastructure, Trend reports via the Bank.
The initiative will be financed by an EBRD sovereign loan of up to €66 million to the Republic of Serbia and will support the construction and operation of a multipurpose dam and reservoir near the village of Pambukovica in the flood-prone Kolubara River basin.
The project is designed to significantly reduce flood risks in one of the country’s most vulnerable regions, helping to protect communities, homes, agricultural land and critical infrastructure. The area has repeatedly suffered from extreme weather events, including the severe floods of 2014, underscoring the need for long-term climate-resilient water management solutions.
Built as a modern, climate-adapted facility, the dam will initially prioritise flood retention and river flow regulation, with future capacity planned for irrigation use. It will also incorporate ecological flow management, sediment control, and measures to improve water quality, supporting healthier river ecosystems and more sustainable land use across the wider basin.
Once fully operational, the reservoir is expected to enable irrigation systems covering more than 2,200 hectares of farmland, helping local farmers better withstand droughts and increasingly erratic rainfall patterns, while enhancing agricultural productivity and climate resilience in the region.
The EBRD remains the leading institutional investor in Serbia, with cumulative investments exceeding €10.8 billion across 407 projects, focusing on private sector competitiveness, green transition and sustainable infrastructure.