New section of Corridor Vc wins EBRD funding

By Axel  Reiserer

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  • EBRD loan of up to €70 million for new section of Corridor Vc
  • EU to provide additional €15 million through Western Balkans Investment Framework
  • Main international transport corridor will support regional integration of Bosnia and Herzegovina

The completion of Bosnia and Herzegovina’s main transport corridor is coming closer with the construction of a new section of Corridor Vc between Johovac and Rudanka with an approximate length of 6.1 km and two interchanges.

The EBRD will finance the investment with a loan of up to €70 million, while the EU is providing an investment grant of up to €15 million through the Western Balkans Investment Framework.

Corridor Vc is the main international transport corridor in Bosnia and Herzegovina. The road will support economic development and contribute to regional integration by improving connectivity within Bosnia and Herzegovina and integration with neighbouring countries. Corridor Vc is expected to be completed by 2030 and the total cost is estimated to be approximately €4 billion.

The new section is situated in the north-eastern part of the country, about 100 km east of Banja Luka. The new road will improve travel conditions, reduce congestion and provide local employment during the construction phase. The new motorway will also improve road safety as it will reduce the heavy traffic that currently passes through the town of Doboj and local villages.

Ian Brown, EBRD Head of Bosnia and Herzegovina, said: “We are pleased to sign this agreement today which illustrates the good progress that is being made with the construction of Corridor Vc. We are confident that establishing better links within the country and connecting it better with Europe will serve the cause of deeper integration, and not only economically.”

Vjekoslav Bevanda, Minister of Finance and Treasury of Bosnia and Herzegovina, thanked the EBRD and the EU: “Such agreements help boost local companies, create new jobs and eventually enable us to move towards the EU in terms of transport links. As a result, we will have new motorways, bridges and faster links with the rest of the world, and all this will result in further economic growth.”

Ambassador Lars-Gunnar Wigemark, Head of the Delegation of the European Union and EU Special Representative to Bosnia and Herzegovina, said: "This €15 million grant is one out of 11 projects funded by the European Union in Bosnia and Herzegovina as part of the Connectivity Agenda with a total of €217 million approved for Bosnia and Herzegovina so far. At the recent Western Balkans 6 Summit in Poznań, Poland, the EU endorsed a new connectivity package that fulfils our €1 billion pledge to the Western Balkans. Bosnia and Herzegovina is a large recipient of these grants. Four of out of 12 new projects approved in Poznań are in Bosnia and Herzegovina. These grants will be leveraging additional investments to build infrastructure to the benefit of citizens and the economy".

Since it began its operations in Bosnia and Herzegovina in 1996, the EBRD has invested €2.5 billion in 163 projects. Last year alone, the Bank invested some €200 million in 15 new projects. In May this year the EBRD held its 2019 Annual Meeting in Sarajevo and reaffirmed its commitment to the country.

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