Bosnia and Herzegovina

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Business sector:


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Environmental category:


Approval date:

16 Nov 2004



PSD disclosed:

09 Dec 2003

Project Description

The proposed project entails:
(i) construction of a new road, Banja Luka to Gradiska, to provide connection to neighbouring Croatia and to the Pan-European Corridor X.  The project will consist of a 29 km new road from Laktasi (Airport) to Gradiska.
(ii) construction of Sarajevo Bypass, forming part of the Pan-European Corridor Vc. The project will consist of a four lane by-pass from Josanica to Butila, a two lane by-pass from Butila to Blazuj, a four lane link to Sarajevo city center (Butila—Brijesce-Safeta Zajke Street) and upgrade of Brijesce –Stup street.
The objectives of this project comprise: parallel financing of these important regional roads links; strengthening of State institutions to enhance the 'single economic space', improving the functioning of road sector organisations and ensuring availability of funds for road operation and maintenance.

Transition Impact

Improvements to road sector financing:
  • Ensure that Road Directorates have adequate funds at least to operate and maintain the main road networks and, if possible, to allow for periodic renewal;
  • Increase the certainty of road finance by revising the maintenance funding approach, but in such a manner that meets IMF criteria;
  • Given the unusual government situation in BiH, to harmonise road user charges and road-related taxes between the two Entities to facilitate the creation of ‘one economic space’.
Increase the commercialisation of road administration and management:
  • Set up both Road Directorates as corporate entities;
  • Improve the structure of the Board of Directors of the Road Directorates so that they have significant road user/private sector presence; this is also important in meeting IMF transparency criteria;
  • Technical and Financial Independent audits of the two Road Directorates which will be made available to the public.
Regulatory and institutional reform:
  • Develop, using a consultative approach, a coherent and integrated transport policy at State level to guide development, operation, administration and management of the sector, including the road sub-sector;
  • Make legislative changes necessary to support all of the above.

The Client

The State of Bosnia and Herzegovina (BiH), the Governments of the two Entities comprising the State - Federation of Bosnia and Herzegovina (FBH) and Republika Srpska (RS) and the relevant Road Authorities of the Entities.

EBRD Finance

€ 70 million, Sovereign Loan to Bosnia and Herzegovina, with on lending to the two political entities comprising the State. The project will be co-financed with the EIB and the OPEC Fund.

Project Cost

Total project cost is estimated at € 235 million.

Environmental Impact

The project has been screen A/0 requiring preparation of the EIA for both components of the project. The Scoping Document and Public Consultation and Disclosure Plan (PCDP) required by EBRD Environmental Policy have been prepared for both components and public hearings were carried out accordingly.  EIAs for both components were prepared and several potentially significant environmental impacts were identified, such as noise, storm water management, demolition and construction waste disposal. These impacts will be mitigated based on the actions defined in the environmental action plans (EAPs) which will be incorporated in the main technical design of the projects.  Key components of EAPs include: protective noise barriers, road drainage system, oils separators and adequately prepared construction waste disposal sites. Implementation of these actions will be monitored in annual environmental, health and safety reports prepared by the clients.
Executive Summaries and  EIAs available below.
There is an Environmental and Social Impact Assessment available for this project.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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