News & Analysis

Bosnian section of international Corridor Vc gets EBRD boost

The European Bank for Reconstruction and Development (EBRD) and the government of Bosnia and Herzegovina have signed a 180 million euro loan deal for the construction of three new sections of the Corridor Vc in the Bosniak-Croat entity of the country. The section has a total length of approximately 15.8 kilometres.

Corridor Vc is a branch of the fifth pan-European corridor and, with a total length of 700 kilometres, connects Hungary, Croatia, Bosnia and Herzegovina and the Adriatic Sea. The longest part of the route goes through Bosnia and Herzegovina, while the road also serves as the shortest connection between the eastern and southern parts of Croatia.

The EBRD loan will be provided in two tranches. Tranche 1, of up to 120 million euros co-financed with the European Investment Bank, for the construction of a motorway section from Poprikuša to Nemila and the Ivan Tunnel. Tranche 2, of up to 60 million euros, for the construction of a motorway section from the Mostar South Interchange to the Kvanj Tunnel. Additionally, the loan is expected to be co-financed by an investment grant in the amount of 11.8 million euros from the European Union, through the Western Balkans Investment Framework (WBIF) which is expected to be approved in December 2018.

The EBRD loan is part of a wider commitment following the signing of a Memorandum of Understanding in February 2018 between the bank and the ministers of transport and communications of the Federation of Bosnia and Herzegovina and Republika Srpska for an investment programme of over 700 million euros for the period 2018-2020.