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€150 million loan to upgrade key transport link in Bosnia and Herzegovina

By EBRD  Press Office

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The EBRD is supporting the modernisation of transport infrastructure in Bosnia and Herzegovina with a €150 million sovereign-guaranteed loan for the construction of a part of the new Banja Luka-Doboj motorway. This segment is the main east-west link in Republika Srpska, one of the country’s entities.

In conjunction with this investment the EBRD will also support the preparation of the first public-private partnership (PPP) project for the main north-south link in Bosnia and Herzegovina, Doboj to Vukosavlje segment of Corridor Vc.

The Banja Luka to Doboj motorway is a 75 km road linking Banja Luka to the new Corridor Vc motorway at Doboj. The EBRD loan will be used to finance the construction of the eastern segment of the motorway, from Prnjavor to Corridor Vc at Doboj, with a total length of 37 km. 

The loan has a maturity of 15 years and is structured in two equal tranches. The project is supported by technical assistance grants provided by the Bank and Western Balkans Investment Fund. The western segment of the motorway, from Banja Luka to Prnjavor, is expected to be financed by the European Investment Bank.

The project will facilitate the introduction and private sector participation in toll collection. Additionally, through this investment the EBRD will support the tendering of PPP contract for the Doboj to Vukosavlje section of Corridor Vc in Republika Srpska. This forthcoming project is expected to be one of the first road PPPs to be developed according to best international standards in Western Balkans.

“Modern infrastructure is imperative for the economic growth and regional integration of Bosnia and Herzegovina and the EBRD is firmly committed to support the development of reliable transport network in the country and the neighbouring region. Today’s signing in Banja Luka is an important milestone for the development of transport infrastructure in Republika Srpska,” said Sue Barret, EBRD Transport Director.

“We are looking forward to continuing our successful cooperation with the country’s authorities in order to increase the role of the private sector in the infrastructure sector and support the further development of Bosnia and Herzegovina,” added Libor Krkoska, Head of the EBRD Office in Bosnia and Herzegovina.

“This project is a continuation of successful cooperation with the EBRD. We managed to secure these funds to start the construction of the Banja Luka to Doboj motorway at the same time when we are completing the Banja Luka to Gradiska motorway including the Mahovljani interchange,” said Dusan Topic, General Manager of RS Motorways.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.3 billion in various sectors of the country’s economy, mobilising additional investment of more than €1.6 billion.

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