The European Bank for Reconstruction and Development, the European Investment Bank and the European Union are financing a new wastewater treatment plant in northern Kosovo to improve sanitation standards and reduce wastewater pollution in South Mitrovica, Vushtrri and the surrounding areas. The EBRD is extending EUR 13.5 million loan to Regional Water Company Mitrovica, a state-owned water utility company, to finance the construction of the new treatment plant, as well as the rehabilitation and extension of the wastewater network in South Mitrovica and Vushtrri. The plant will benefit more than 123,000 people living in the company’s service area.The European Investment Bank will co-finance the project with another EUR 13.5 million loan, while the EU will provide a EUR 5 million grant through the Western Balkans Investment Framework. The Project will also benefit from technical assistance provided by WBIF and Swiss State Secretariat for Economic Affairs.The new treatment plant will significantly reduce pollution from wastewater flowing into four of the region’s rivers and provide residents with access to cleaner water. It will also benefit neighbouring municipalities in Serbia.The water quality of Kosovan rivers has deteriorated in recent decades due to a lack of proper wastewater and solid-waste treatment. The EBRD is helping Kosovo to address these challenges and invest in modern environmental infrastructure with well-structured finance through the WBIF. This will be the second wastewater treatment plant that the EBRD and the EU have supported in the country; construction is scheduled to start on the Gjilan plant in 2022.