EBRD to lend €210m for Corridor Vc project in Bosnia and Herzegovina

WCN Editorial Team 13 May 2019 EUROPE TRANSPORT INFRASTRUCTURE

The European Bank for Reconstruction and Development (EBRD) has agreed to provide a €210m loan for the construction of a new section of the Corridor Vc Motorway project in Bosnia and Herzegovina to improve the connection of the country with the Western Balkans and the rest of Europe.

The Corridor Vc is the biggest construction project in the country and will cross the country from the port of Ploce in the south to the border with Croatia in the north.

The 14km section of the project will begin at the Rudanka interchange in the Republika Srpska and include a bypass for town of Doboj at the Medakovo interchange in the Federation of Bosnia and Herzegovina.

Doboj is a national transport hub, linking different parts of the country.

The Corridor Vc will serve as an extension of the Trans-European Transport Networks to the core network of the Western Balkans.

Over 50% of the population of Bosnia and Herzegovina lives within the 30km corridor, which contributes more than 60% to the country’s GDP.

The €4bn Corridor Vc is expected to be completed in 2030. So far, about €1.1bn has been invested in the project.

Apart from the EBRD and the European Investment Bank (EIB), the European Union (EU) is the largest contributor through the Western Balkans Investment Framework.

OFID and Kuwait Fund are among other co-financiers of Corridor Vc.

The new section of Corridor Vc will feature climate resilience measures to strengthen the asset against extreme weather events such as flooding.

The project is expected to improve the quality of life of over 70,000 inhabitants of Doboj due to due to less exposure to traffic.

EBRD president Suma Chakrabarti and Bosnia and Herzegovina Minister of Finance and Treasury Vjerkoslav Bevanda signed the loan agreement.

The EBRD has been supporting Bosnia and Herzegovina’s sustainable growth through a combination of investment and assistance for policy reforms.

Since the country became a shareholder of the bank in June 1996 and operations began, the EBRD has invested €2.3bn in around 160 projects.

In 2018, the EBRD has invested some €200m in 15 new projects.

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Image: EBRD president Suma Chakrabarti (left) and Bosnia and Herzegovina Minister of Finance and Treasury Vjerkoslav Bevanda signing the loan agreement. Photo: Courtesy of European Bank for Reconstruction and Development.

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