EBRD improves key transport link between Bosnia and Herzegovina and Montenegro

• EBRD extends €60 million sovereign loan for Foča-Hum road upgrade
• Project will improve connectivity between Bosnia and Herzegovina and Montenegro
• Investment supported by the European Union with a technical assistance grant

The European Bank for Reconstruction and Development (EBRD) is helping to strengthen road connectivity in Bosnia and Herzegovina and the wider Western Balkans region.

The Bank is extending a €60 million loan to Bosnia and Herzegovina for the construction of a new section of road connecting the cities of Foča and Hum. It comprises a 13.3 km section from Donji Kopilovi, near Foča, to the Hum border crossing with Montenegro.

The project will be co-financed with a loan of €39.4 million from the World Bank.

The European Union also supported the project by providing a €700,000 grant for technical assistance for the feasibility study of the project.

The Foča-Hum road is a strategic link on the Sarajevo-Podgorica route and part of the indicative extension of the Trans-European Transport Network (TEN-T) in the Western Balkans.

Once completed, the upgraded road will improve conditions on the shortest connection between Bosnia and Herzegovina and Montenegro; the existing road passes through challenging mountainous terrain and is susceptible to landslides, flooding and climate-related events. The new section will incorporate road safety and climate-resilience measures, creating a safer and more reliable route for people, goods and services.

Stela Melnic, EBRD Head of Bosnia and Herzegovina, said: “The EBRD has been a longstanding partner to Bosnia and Herzegovina in helping it structure and finance key transport links. This investment will strengthen an important regional transport corridor, improve connectivity and support safer, more resilient infrastructure in the country.”

The new section of road is part of a larger investment jointly financed by Bosnia and Herzegovina and Montenegro that includes rehabilitating and building two adjacent road sections, as well as a new bridge of about 380 metres in length over the Tara River to Montenegro.

The EBRD remains one of the leading institutional investors in Bosnia and Herzegovina. To date, the Bank has invested more than €3.5 billion in the country through projects supporting private-sector competitiveness, sustainable infrastructure and the transition to a green economy.