Loan agreement signed with EBRD for the construction of a motorway section on the Corridor Vc

The Minister of Finance and Treasury of Bosnia and Herzegovina, Srđan Amidžić, and the Head of the European Bank for Reconstruction and Development (EBRD) Office in BiH, Manuela Naesl, signed today the Loan Agreement in the amount of 110 million euros for the construction of the Corridor Vc motorway on the section Mostar north – Mostar south.

After the signing, Minister Amidžić stated that this is a very important project – 15 kilometers of motorway and two interchanges Mostar south – Mostar north. The total value is 110 million euros.

He noted that the loan is for the period of 15 years, with a grace period of four years.

“We are starting with another important project. We talked about financing a part of the main road from Foča to Hum. The expected value of the project is about 100 million euros, where the grant funds would be some 40 million euros. The length of that section is 19.5 kilometers and we consider that project extremely important,” said Amidžić.

The EBRD Director for Infrastructure Susan Goeransson expressed satisfaction over the signing of the contract on the financing of this key section, “of which the first half of the tranche will be disposed of today”.

The project will be financed with a EUR 150 million grant from the investment framework for the Western Balkans and also from local banks that have already been selected through an open public tender, which the Bank supported.

She explained that the project consists of the Mostar north loop, the Mostar south loop and a 15-kilometer section of motorway.

“The project will improve road infrastructure, services near the city of Mostar, will connect city streets, and reduce transportation costs. It will also reduce air pollution in the city and significantly contribute to road safety,” said Goeransson.

She reminded that the EBRD started financing this corridor in 2008. Since then, the bank has invested more than one billion euros.

Goeransson stated that they also played a key role in mobilizing the investment framework of the Western Balkans through the EU, which is more than 800 million, as well as the EIB, which also financed one billion for this key highway.

“This corridor has been in the works for quite a long time and thanks to everyone who participated in the construction of this road and this project,” Goeransson said.

The Deputy Head of the EU Delegation to Bosnia and Herzegovina, Adebayo Babajide, said that the EU has provided more than 150 million euros in grants to support the construction of this very important section, with the formal signing of this contract to happen next year.

“We cannot emphasize enough the importance of the Corridor Vc as one of the key transport bloodlines, the key trade link of BiH with its neighboring countries and the wider road networks in the rest of Europe,” he stated.

He pointed out that the benefits for the local population are numerous, from reducing the time needed to travel, improving road safety to a shorter travel through Mostar.

He noted that the EU has provided more than EUR 870 million in non-reimbursed support for the construction of the Corridor Vc.