Banja Luka to Doboj Road

Location:

Bosnia and Herzegovina

Project number:

41370

Business sector:

Transport

Notice type:

Public

Environmental category:

A

Target board date:

04 Oct 2017

Status:

Signed

PSD disclosed:

22 Jun 2011

Translated version of this PSD: Bosnian

Project Description

Provision of a sovereign loan in the amount of up to EUR 195 million to Republika Srpska Motorways (RSM) in Bosnia and Herzegovina (BiH) to finance the construction of a motorway section between Prnjavor and Doboj, 37 km in length, which is part of the motorway section between Banja Luka and Doboj with an overall length of 76 km.

Project Objectives

Support of BiH's economic development by improving connectivity between its main cities and between BiH and neighbouring countries through Corridor Vc, which is BiH's strategic transport corridor.

Transition Impact

Moderate Good

Promotion of participation of the private sector in the development of RS motorways through the preparation and award of a public private partnership (PPP) concession for the construction and maintenance of a section of Corridor Vc in RS and the introduction of tolls in RS motorways as the motorway network is expanded.

Client Information

MOTORWAYS OF REPUBLIKA SRPSKA

The Client is Republika Srpska Motorways, a limited liability company wholly owned by the government of Republika Srpska.

EBRD Finance Summary

EUR 195,000,000.00

A sovereign guaranteed loan to the Company.

Total Project Cost

EUR 498,000,000.00

Environmental and Social Summary

Categorised A (2014). An Environmental and Social Impact Assessment (ESIA) was required in accordance with Appendix 1 of the 2008 EBRD Environmental and Social Policy.

Information reviewed

Independent consultants undertook a review of the existing Environmental Impact Assessment (EIA), land acquisition plans, permitting and design documentation. A series of site visits were also undertaken to assess the potential social impacts of the Project as a Social Impact Assessment (SIA) is not required under national regulatory requirements.

Environmental and Social issues

The EIA approval process was completed in March 2011 and the Environmental Permitting process is currently underway. The route was selected using a multi-criteria analysis which considered environmental and social impacts and feedback from stakeholders. Full project preparation documents including the Environmental Impact Study (EIS) for the Banja Luka to Doboj motorway are available on the Republika of Srpska Motorways website.

The non-technical summary for the Project has been updated and provides additional information on social issues. The main impacts of the Project are expected to be:

i changes to noise and air quality during construction and operations; i traffic disturbance, diversions and nuisance during construction;

i worker and public health and safety during construction; and

i land acquisition and associated involuntary resettlement.

Although the EIA anticipated that no habitats of rare or endangered species would be impacted by the Project, due diligence has identified that limited baseline surveys have been carried out within the corridor route. The EIA Decision has identified the need for further study supported by detailed reconnaissance. Additional pre-construction surveys will therefore be undertaken and used to inform specific mitigation measures to be adopted for the Project based on the precautionary principle approach.

The EIA took an approach, based on the assumption that a significant proportion of vehicles would
be using leaded fuel, to assess potential soil pollution at the roadside. As a result the EIA identified
the potential for prohibiting the use of land outside the Project area primarily for agricultural purposes,
due to predicted concentrations of heavy metals, salt & organic pollution of soil. Following changes
to regulations on technical accuracy of vehicles, use of engines with catalytic converters and use
of unleaded fuel it is now expected that the potential overall contamination will substantially reduce
the potential negative impact. A revised and more detailed assessment is to be prepared to enable
updated mitigation/restrictions to be identified for this issue and suggested changes to be approved
by the Ministry of Spatial Planning, Civil Engineering and Ecology.
Approximately 600 ha of land for the motorway has been acquired in accordance with the Republika
Srpska legislation. Negotiated settlements with individual owners were reached wherever possible.
Independent consultants have reviewed the land acquisition process to date and have confirmed
that the land acquisition has been implemented in accordance with the main requirements of
Performance Requirement 5 (PR5) and a Resettlement Action Plan (RAP) / Livelihood Restoration
Framework (LRF) is not required.
Consultations during the EIA and planning processes were carried out in accordance with the
Republika Srpska legislation requirements. However, a Stakeholder Engagement Plan has been
developed in accordance with EBRD's Performance Requirement 10 (PR10) to ensure that all
stakeholders have been identified, sufficient information about issues and impacts arising from the
Project are disclosed and a grievance procedure is in place for the Project.
Environmental or social opportunities
The Project is expected to reduce travel time for passengers and freight thus reducing transport
costs, lead to improvements in road safety and support development of local economies.
Environmental and Social Action Plan
An Environmental and Social Action Plan (ESAP) has been developed and disclosed for the Project
to address issues identified during the due diligence.

There is an ESIA available for this Project.

The Supervision Engineer and the Client have been monitoring and reporting on the implementation of the ESAP, which has been satisfactory to date. Due to some minor changes to the alignment, there will be some additional limited land expropriation needed, but no physical displacement. The Client is aware that PR5 requirements will need to be met for the additional land acquisition.

Technical Cooperation

No TC's are anticipated for this Project.

Company Contact Information

Dusan Topic, General Manager
info@autoputevirs.com
0038751233680
0038751233700
www.autoputevirs.com
Ul. Vase Pelagi#a br. 10 78000 Banja Luka Republika Srpska Bosnia and Herzegovina

Business opportunities

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Text of the PIP

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