Republika Srpska, the Serb-majority entity of Bosnia and Herzegovina, has announced that it has signed a concession contract with Chinese company China Shandong International Economic and Technical Cooperation Group (CSI) for the construction and operation of the first section of a motorway that will connect Banja Luka, the administrative centre of Republika Srpska, with Prijedor and Novi Grad.
The concession on the first section, which is 42km in length and connects Banja Luka to Prijedor, will be granted for a period of 33 years, including a three-year period for construction work. CSI will design, finance, build, manage and maintain the Banja Luka-Prijedor motorway section. During the period of operating the motorway, it will pay an annual fee of 32.5 million euros to the Republika Srpska government.
Investment in the motorway is expected to total 297 million euros.
Back in October, the Republika Srpska and CSI agreed for the latter to pay a one-off fee of 4.47 million euro for the concession. The concession contract will be officially signed after the payment of that fee.