The European Bank for Reconstruction and Development (EBRD) is financing the construction of the Pambukovica dam in western Serbia through a €66 million sovereign loan, in a project designed to reduce flood risks, improve water management, and strengthen agricultural resilience in one of the country’s most climate-vulnerable regions, according to an EBRD announcement. The dam will be built near the village of Pambukovica in the Kolubara River basin — an area repeatedly hit by extreme flooding, including the devastating 2014 floods that caused widespread destruction across Serbia. The project reflects a growing recognition that protecting communities from climate shocks requires long-term infrastructure investment, not just emergency response.
The Pambukovica dam is designed as a multipurpose structure that will initially focus on flood retention and river flow regulation, while being pre-built to support future irrigation expansion. Once the reservoir is fully established, it is expected to serve more than 2,200 hectares of agricultural land, giving local farmers a buffer against droughts and increasingly unpredictable rainfall patterns. The project will also include ecological flow management, sediment control, and water quality improvements — keeping river ecosystems healthier while making land use across the wider catchment area more sustainable. EBRD Deputy Director for Serbia Jelena Čeperković said the project “lays the foundations for more resilient agriculture and sustainable water management.”
Srbijavode CEO Goran Puzović described the dam as “a major water management project” that will deliver meaningful protection to a region with a long history of flood damage, while also supporting economic development and agricultural stability over the long term. The EBRD is the leading institutional investor in Serbia, having committed more than €10.8 billion across 407 projects to date. The Pambukovica investment fits squarely within the Bank’s focus on Serbia’s green economy and sustainable infrastructure, and adds to a growing portfolio of climate adaptation projects across the Western Balkans.
