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Driving towards a better road sector in Bosnia
€70 million to build by-pass, motorway and support regional integration
Speaking today at an EBRD transport seminar in Sarajevo, Jean Lemierre, the
Bank’s president, said one of the biggest needs in the western Balkans is for
greater regional integration and cooperation.
With this goal in mind, the EBRD is lending Bosnia and Herzegovina (BiH) €70
million to build roads which will be key transport links connecting the
western Balkans with each other and, ultimately, western Europe. The funds are
being lent to BiH, and will be on-lent to the country’s two entities – the
Federation of Bosnia and Herzegovina, and Republika Srpska, which will then
on-lend the financing to their respective road agencies.
Roads play a crucial role in supporting the transition process towards a
better economy, said Mr Lemierre. As well as connecting towns and cities, they
connect countries and link regions, supporting trade and tourism alike. This
project is helping Bosnia and Herzegovina create good road infrastructure that
can help attract investment, Mr Lemierre added.
Part of the financing is being used to build a by-pass around Sarajevo,
forming an integral part of Pan-European Corridor Vc, which links the port of
Ploče in Croatia to Bosnia and Herzegovina and Hungary. The new by-pass is
expected to reduce traffic congestion around the city, and provide a link to
the centre of the city which will benefit residents, businesses and tourists.
Another portion of the loan is being used to help build a motorway from Banja
Luka to Gradiska in the northern part of the country. A third element is the
construction of a bridge on the river Sava and the creation of a separate
border crossing between Bosnia and Herzegovina and Croatia thereby improving
the regional transport network.
Adnan Terzic, Prime Minister of the State of Bosnia and Herzegovina, said the
EBRD loan is very important for Bosnia and Herzegovina. “One of the biggest
challenges we face is to integrate with our neighbours, and projects like this
are helping us achieve that,” said Mr Terzic. He added: "The project will also
benefit many people and businesses throughout Bosnia and Herzegovina, but
especially around Sarajevo, since the new by-pass will help relieve much of
the traffic congestion building up around the city."
The overall project – whose total cost is €235 million – is being co-financed
and implemented in parallel with the European Investment Bank and the OPEC
Fund, while the European Union has provided valuable technical cooperation
funds to help kick-start the project. The EBRD is one of the largest investors
in Bosnia and Herzegovina, having invested more than €271 million in 37
projects.
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