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The European Bank for Reconstruction and Development is financing improvements to public transport in Novi Sad - the second largest city in Serbia and the capital of the autonomous province of Vojvodina. The first project under the EBRD Green Cities program aims to tackle environmental challenges in the city. 

Illustrative image shows a Scania Citywide low floor CNG bus in Warsaw, Poland. Photo by meowKa/Shutterstock.com.

A EUR 7 million loan agreement, which was signed by the EBRD and the Public Transport Company of Novi Sad, will allow the company to purchase new buses that run on compressed natural gas (CNG), which, compared to diesel buses, significantly reduce pollution emissions, the EBRD said in a statement.

This project is part of the wider ongoing bus fleet renewal, which the company started earlier last year. The CNG-powered buses financed by the EBRD will be in use from this year and will contribute to the significantly improved quality, reliability and attractiveness of public transport, the bank says.

The buses will be equipped with wheelchair lift access and feature allocated areas for disabled people, EBRD added.