The European Bank for Reconstruction and Development (EBRD) has agreed to provide €700m for the development and modernisation of the road infrastructure in Bosnia and Herzegovina.
The EBRD and the Ministers for Transport and Communications of the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS) have signed a Memorandum of Understanding (MoU), which outlined an investment programme for the period 2018-2020.
In a release, the EBRD said that expanding the road infrastructure and building modern motorways is essential for the integration of Bosnia and Herzegovina and its economy with the region and strengthening links with Western Europe.
Improving connectivity is important for the Western Balkans economic convergence, it said.
The EBRD funding is for the Bosnian section of the international Corridor Vc, which is planned to run for 330km through Bosnia and Herzegovina.
Under the programme, public company JP Autoceste FBiH will take up work on the section of Corridor Vc from Poprikuse to Nemila; tunnel Ivan; section of the corridor from the Mostar South interchange to Tunnel Kvanj; section from Karuse to the inter-entity boundary line in Tunnel Putnikovo Brdo; and the section between Tunnel Ivan and Mostar South interchange.
Similarly, public company JP Autoputevi RS will be responsible for implementation of the section of Corridor Vc from Rudanka to the inter-entity boundary line in Tunnel Putnikovo Brdo and the section of Corridor Vc from Vukosavlje to Podnovlje.
EBRD president Suma Chakrabarti said: “We are very pleased to sign this Memorandum of Understanding today.
“After the recent breakthrough at the political level, we are now ready to deliver the projects, which have been under preparation for some time and which are overdue for the future prosperity of the country.
“With these roads, Bosnia and Herzegovina will move closer to where it belongs – the centre of Europe.”
The EBRD has so far invested more than €2.1bn in over 146 projects in Bosnia and Herzegovina.