€70 million EBRD loan to upgrade infrastructure network with investment in Corridor Vc
The EU is considering co-financing the project with an investment grant of €15.3 million extended through the Western Balkans Investment Framework.
The sovereign guaranteed loan to Republika Srpska Motorways, a company owned by Republika Srpska, will finance a new section of the key Corridor Vc motorway between Johovac and Rudanka and two interchanges. Republika Srpska is one of the two constituent entities of Bosnia and Herzegovina.
Corridor Vc is the main international transport corridor in Bosnia and Herzegovina and its development is a strategic priority for the country. The road is part of the Western Balkans Core Network. It has been established as an extension of the Trans-European Transport Networks and will eventually link the Hungarian capital Budapest with the Croatian port of Ploče.
The loan will finance the construction of two motorway interchanges, a six km motorway section between the two interchanges and a connecting road, including a crossing of the River Bosna, to link the new section of the motorway to the existing trunk road.
Ian Brown, EBRD Head of Bosnia and Herzegovina, said: “Following the approval of the fuel excise levy by the state parliament last week we are very pleased to be moving ahead immediately with the commitment of €70 million of new funds from the EBRD for the first section of the Corridor Vc project in Republika Srpska. This will create jobs and stimulate economic growth.”
Sue Barrett, EBRD Director, Transport, added: “This new investment will contribute to the integration of Bosnia and Herzegovina with the Western Balkans and European markets. It builds on previous projects under which already 100 km of modern motorway have been built and supports the development of the country through integration and connectivity.”
Dusan Topic, General Manager of Republika Srpska Motorways, said: “This signing is the result of our continuous and constructive collaboration with the EBRD. We are grateful for the support we have received in the past and look forward to intensifying our cooperation now that the fuel levy will be amended. We would also like to thank the European Union for their support to the transport sector under their Connectivity Agenda and for considering the proposed investment grant”.
To date, the EBRD has invested more than €2 billion in Bosnia and Herzegovina in almost 150 projects. Investments to modernise and upgrade the country’s transport infrastructure with the goal of strengthening the integration, boosting the local economy and preparing economically sustainable structure is one of the Bank’s priorities in Bosnia and Herzegovina.