In 2000, solid waste collection services in Bosnia and Herzegovina covered only about 60 percent of the larger municipalities and a much lower share in rural towns. Institutional and enforcement capacity was weak, and equipment for waste collection and disposal were obsolete and poorly maintained. As a result, significant amounts of waste were discarded in unofficial sites such as wild dumps, roadsides, rivers and mines, posing a direct risk to public health and causing serious environmental problems.
In 2002, the Solid Waste Management Project, supported by IDA funding of US$26 million, was launched to improve solid waste services in participating priority areas, increase administrative and technical capacity for solid waste management at the local and entity level, improve cost recovery and encourage private sector involvement, and address environmental problems and reduce health hazards caused by inadequate waste collection and disposal systems. This was the first Bank-financed project implemented by only one Project Management Unit (PMU) for both entities. Given the significant environmental improvement in participating areas, the project was expanded through additional financing, and a new project is being prepared to support construction of six new sanitary landfills by the end of 2013.