Bosnia and Herzegovina Air Traffic Management System


Bosnia and Herzegovina

Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

25 Jul 2006



PSD disclosed:

19 Jan 2005

Project Description

The proposed project entails purchase of air navigation, communication and meteorological equipment, software and training services to support the establishment of a new Air Navigation Services Provider which would take over the control of the intermediate and lower air space in Bosnia and Herzegovina (BiH).

The project will be implemented by the Directorate for Civil Aviation of Bosnia and Herzegovina (BHDCA). The project will assist BiH in meeting its obligations arising from its membership of various international organisations (ICAO, IATA, ECAC, EUROCONTROL) and handling air traffic in a safe and efficient manner. It will also support BiH’s participation in the Central European Air Traffic Services Agreement (CEATS). The project will support the separation of the regulatory and oversight function, to be retained by BHDCA, from the service provision function, to be undertaken by the newly established Air Navigation Services Provider (BHANSP).

Transition Impact

The project will facilitate transition in the following ways:

  • Separation of regulatory and oversight function from air traffic function and establishment of BHANSP as a corporation/shareholding company. The BHDCA will evolve into the regulatory and oversight agency. BHANSP will be created by the separation into an independent entity of the current Air Navigation Division of the BHDCA.
  • Establishment of transparent and predictable allocation mechanisms for air navigation charges in BiH.
  • Support regional integration through provision of equipment which will allow BiH to participate in the CEATS Agreement.
  • Increase transparency through independent financial audit of BHANSP and disclosure of IFRS account

The Client

The Client will be the Government of Bosnia and Herzegovina. The implementing agency will be initially the BHDCA and afterwards, following its establishment, the newly created BHANSP, reporting to the Ministry of Communications and Transport.

EBRD Finance

EURO 12 million, Sovereign Loan to Bosnia and Herzegovina.

Project Cost

EURO 14.4 million.

Environmental Impact

Screening categories and rationale for classification
Environmental impacts associated with the construction and operation of Mono-pulse Secondary Surveillance Radar (MPSSR) are not considered to be significant and could be readily identified and mitigated through the implementation of appropriate measures. Therefore, the project has been classified as B/0, requiring an Environmental Analysis.

Information reviewed during the environmental appraisal
EBRD’s Environmental, Health and Safety Due Diligence Questionnaire for Air Navigation Project prepared by BHDCA in the cooperation with the Federation of Bosnia and Herzegovina’s Ministry for Environment and Physical Planning, December 2004.

Environmental Impacts and Mitigation Measures
Mono-pulse Secondary Surveillance Radar facility and additional radio-navigation aides could involve construction impacts associated with the siting of the radar and building access roads. Human settlements may also be potentially affected by high frequency electromagnetic waves. Possible negative environmental impacts might occur due to the increased air traffic in the area (air pollution, dust, exceeding noise levels in the area, possible ground or surface water pollution, waste disposal, use of hazardous materials, disturbance of the natural habitat and biodiversity).

The information provided showed that the proposed investment programme is associated with very limited environmental impacts and will result in environmental benefits.

The site of the MPSSR will be located on the top of a mountain, in a very isolated location far away of any human settlements. There is an existing road to the site. Construction of the navigation towers will be carried out on the existing airports in Banja Luka, Mostar and Sarajevo, hence the impacts at the site will be insignificant.

Environmental opportunities
The project will contribute to improvement the Company’s environmental, health and safety management.

The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports (AERs) prepared for the project covering: (i) ongoing performance of project-specific environmental, health and safety activities, (ii) the status of implementation of environmental improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

Technical Cooperation

Technical Co-operation funds were secured from USTDA-EBRD Technical Cooperation Fund for assistance with procurement and project management.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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