Zrenjanin requests from state to gaurantee repayment of loan for water factory

City Council has submitted a draft conclusion to the City Assembly of Zrenjanin by which it requests from the Serbian government to guarantee the repayment of a EUR 25.6 million loan to Germany's Wassertechnik, which was taken out for the needs of designing and building a water factory in Zrenjanin, on the basis of an agreement signed with the public utility company Vodovod i Kanalizacija.

This agreement was signed during the election campaign in April 2012, when the City Assembly announced that the construction of a water factory would commence in six months and that the citizens of Zrenjanin would get a healthy drinking water in three years, in line with European standards and at affordable price.

Milorad Bjelogrlic, the director of Zrenjanin's water supply company Vodovod at the time, announced that the construction of that water factory would be financed with the proceeds of a loan to be repaid over the period of 15 years starting 2015.

At the agreement signing ceremony, Bjelogrlic said that the Serbian government or Vojvodina were expected to guarantee the repayment of that loan, announcing the possibility of securing grants from EU funds.