EBRD finances parts of Trans-European Corridor Vc
The European Bank for Reconstruction and Development (EBRD) is improving regional connectivity in the Western Balkans by financing the construction of two key motorway sections of the Trans-European Corridor Vc in the Federation of Bosnia and Herzegovina (FBH), one of the two entities constituting Bosnia and Herzegovina (BiH).
The Trans-European Corridor Vc connects the Port of Ploce in Croatia with the Hungarian capital Budapest and is part of Route 2 of the South East Europe Transport Observatory Comprehensive Network, the key road network in the Western Balkans.
The EBRD is supporting the construction with a €80 million sovereign loan, extended to government of BiH for the benefit of the local company FBH Motorways, responsible for the development, operation and maintenance of Corridor Vc within the FBH territory.
The financing will support the construction of two key motorway sections between the southern villages of Pocitelj and Buna as well as a bypass around Zenica, one of the largest cities in BiH.
Through this project, the EBRD will improve the procurement procedures at FBH Motorways to achieve certification by internationally recognised institutions and international safety standard ratings.
The development of Corridor Vc is a strategic priority for BiH, as the work supports national economic development and contributes to regional integration by improving connectivity between the capital Sarajevo, neighbouring countries and the EU.
“We are proud to support this project. The EBRD has a longstanding relationship of cooperation in the road sector in Bosnia and Herzegovina. Corridor Vc is a major international road corridor and vital for the country’s integration into international markets. The project will address key challenges in this sector through strengthening institution building,” said Sue Barrett, EBRD Director for Transport.
“We are pleased to play a major part in developing this important connection between the Western Balkans and the EU. Corridor Vc is the largest investment programme that is currently being implemented in FBH. This project will also aim to raise international road safety standards,” added Ian Brown, Head of the EBRD Office in Sarajevo.
“We are pleased to continue our cooperation with the EBRD. This is an important step for us. We are grateful for the EBRD’s continuous support in developing this project, as it is a high priority for us and the people of BiH,” summed up Mr Vjekoslav Bevanda, BH Minister of Finance and Treasury.
Since the start of its operations in BiH, the EBRD has invested more than €1.7 billion in more than 122 projects in the country. The Bank invests in infrastructure development, support for small and medium-sized enterprises and strengthening of the financial sector.