The European Investment Bank (EIB) has signed two loans totalling €150m for the construction of a pan-European motorway through Bosnia and Herzegovina.
The loans, which have been given to the state of Bosnia and Herzegovina, will finance two road segments of the Corridor VC pan-European road link, connecting Budapest and Eastern Croatia to the Adriatic coast through Bosnia and Herzegovina.
A loan worth €100m will fund the section of Corridor VC to the south of Mostar: the construction of a new 21km long tolled motorway, including a 2.6km long twin tunnel and ancillary structures between Mostar South and Pocitelj in the south of Bosnia and Herzegovina.
Another loan, valued at €50m, will be used for the construction of a new 2.8km long tolled motorway section, including a 2.4km long twin tunnel and ancillary structures between Ponirak and Vraca in the centre of the country.
The loans will be used to build two new segments of the key road infrastructure and are supported by a guarantee from the EU budget under the External Lending Mandate (ELM).
EIB stated that the loans will help to consolidate economic fundamentals and facilitate the EU accession process.
EIB vice-president Dario Scannapieco said: “Bosnia and Herzegovina is showing determination to continue on its path towards European integration and the EIB is ready to help with financing and advice.
“Today’s loans show what the Economic Resilience Initiative stands for: helping countries overcome the consequences of the migration crisis and build a better future for their citizens.”
The Corridor VC motorway extends the EU-wide TEN-T network to neighbouring countries. The two projects will cut down travel times and congestion and enhance road safety.
Until date, EIB has signed financing of about €2.5bn for projects in Bosnia and Herzegovina including latest projects. It has already committed nearly €700m of financing in the Western Balkans.