Republika Srpska Railways


Bosnia and Herzegovina

Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

15 Dec 2021


Concept Reviewed

PSD disclosed:

09 Oct 2020

Project Description

Provision of a sovereign loan to Bosnia and Herzegovina ("BiH") in the amount of up to EUR 37 million to be on-lent to the Republika Srpska ("RS") for the benefit of Republika Srpska Railways ("RSR" or the "Client") for the rehabilitation and upgrade of the rail section Samac i Doboj i Rjecica in RS that is part of rail Corridor Vc (the "Project"). The Project is expected to be jointly co-financed with a loan from the European Investment Bank ("EIB") in the amount of EUR 40 million and an investment grant in the amount of EUR 83 million from the European Union ("EU") under the Western Balkans Investment Framework ("WBIF").

Project Objectives

  • Improvement of railway infrastructure through track overhaul and signalling modernisation.
  • Reduction of travel time, accident risk and operations and maintenance costs.
  • Increase of travel speed and enhancement of reliability and capacity of services.

Transition Impact

ETI score: 63

The transition impact derives from the Integrated transition quality through the development of railway transportation and material quality improvements of the current infrastructure. The Project includes also the Well-Governed transition quality by improving the contractual relationship between the RS government as the owner of the RSR and the RSR as the infrastructure manager through the development of a well-defined Public Service Contract ("PSC").

Client Information


The borrower is BiH. The loan will be on-lent to the RS for the benefit of RSR.

EBRD Finance Summary

EUR 37,000,000.00

A sovereign loan of up to EUR 37 million to BiH, to be on-lent to RS  for the benefit of RSR. Loan tenor is up to 15 years, including up to 3 years of grace period.

Total Project Cost

EUR 160,290,000.00

The total estimated project cost is EUR 160.3 million including capital investments from both EBRD and EIB and technical cooperation (consultancy services). 

A sovereign loan of up to EUR 37 million to BiH, to be on-lent to RS  for the benefit of RSR. Loan tenor is up to 15 years, including up to 3 years of grace period.



The additionality of the EBRD financing includes: (i) the financing structure; (ii) the policy, sector, institutional or regulatory change; and (iii) standard-setting: helping projects and clients achieve higher standards.

Environmental and Social Summary

Categorised B (2019 ESP) and High-Medium risk. The Project is High-Medium risk and has been identified in pre-appraisal screening as potentially presenting a high labour risk profile due to the magnitude of expected construction works, but also as a result of the Client's ongoing restructuring process which is expected to result in large-scale retrenchment. Key environmental and social ("E&S") risks and impacts associated with renewal of 80 km of railway tracks and associated infrastructure to consider include: pollution prevention and control, in particular related to air and noise emissions, waste and hazardous substances management, emissions to water and soil, rail and traffic safety, occupational and community health and safety, labour issues, contractor management, stakeholder engagement and cumulative impacts. It is understood that no land acquisition or biodiversity impacts will occur, but this will be verified during the environmental and social due diligence ("ESDD") that will be undertaken by an independent consultant and will include an assessment of the Client's corporate E&S capacity to structure and implement the Project in line with the EBRD Performance Requirements, review of E&S performance of previous projects funded by EBRD, a review of the national ESDD against EBRD requirements and preparation of a disclosure package.

Technical Cooperation and Grant Financing

A. Technical Cooperation (TC)


TC1: Environmental and social due diligence. Financed by the EBRD Shareholder Special Fund ("SSF") in amount of EUR 43,051.

TC2: Technical due diligence. Financed by the SSF in amount of EUR 40,000.

TC3: Economic due diligence. Financed by the SSF in amount of EUR 20,000.

TC4: Advanced Procurement. Expected to be financed by an international donor or the SSF in amount of EUR 150,000.

TC5: Assessment of Persistent Organic Pollutants ("POPs") presence and safe removal and disposal options. Financed by GEF under the Environmental Technologies in the Mediterranean Sea Region for Water Systems and Clean Coasts ("EnviTeCC") programme in amount of USD 44,925.


B. Co-investment grants / Concessional Finance (Non-TC)

BiH has applied for EUR 70 million of investment grant funds from WBIF to cover up to 50 per cent of the eligible construction costs and up to 100 per cent of the engineering supervision cost.

Subject to the results of the TC4, the Client could also be eligible for an investment grant from the EnviTeCC programme, in amount up to USD 500,000.

Company Contact Information

Dragan Zelenkovic
+ 387 53 209 024
+ 387 53 209 024
Svetog Save 71 74000 Doboj Bosnia and Herzegovina

PSD last updated

12 Mar 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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