Near US$200m loan for Balkan motorway

The European Bank for Reconstruction and Development (EBRD) has granted a US$198million (€150million) sovereign-guaranteed loan for the construction of part of the new Banja Luka-Doboj motorway in Bosnia and Herzegovina. The loan-targeted motorway section is the main east-west link in Republika Srpska, one of the country’s entities. The EBRD said it will also support the preparation of the first public-private partnership (PPP) project for the main north-south link in Bosnia and Herzegovina, Doboj to Vukosa
April 27, 2012 Read time: 2 mins
The 1166 European Bank for Reconstruction and Development (EBRD) has granted a US$198million (€150million) sovereign-guaranteed loan for the construction of part of the new Banja Luka-Doboj motorway in Bosnia and Herzegovina.

The loan-targeted motorway section is the main east-west link in Republika Srpska, one of the country’s entities.

The EBRD said it will also support the preparation of the first public-private partnership (PPP) project for the main north-south link in Bosnia and Herzegovina, Doboj to Vukosavlje segment of Corridor Vc.

The Banja Luka to Doboj motorway is a 75km road linking Banja Luka to the new Corridor Vc motorway at Doboj. The EBRD loan will be used to finance the construction of the eastern segment of the motorway, from Prnjavor to Corridor Vc at Doboj, with a total length of 37km. 

The loan has a maturity of 15 years and is structured in two equal tranches. The project is supported by technical assistance grants provided by the Bank and Western Balkans Investment Fund. The western segment of the motorway, from Banja Luka to Prnjavor, is expected to be financed by the 1054 European Investment Bank.

The project will lead to the introduction of and private sector participation in toll collection. Additionally, through this investment the EBRD will support the tendering of PPP contract for the Doboj to Vukosavlje section of Corridor Vc in Republika Srpska. The project is expected to be one of the first road PPPs to be developed according to best international standards in Western Balkans.

“Modern infrastructure is imperative for the economic growth and regional integration of Bosnia and Herzegovina and the EBRD is firmly committed to support the development of reliable transport network in the country and the neighbouring region,” said Sue Barret, EBRD transport director.

Since the beginning of its initiatives in Bosnia and Herzegovina, the EBRD has committed over US$1.7billion (€1.3billion) in various sectors of the country’s economy, mobilising additional investment of more than US$2.1billion (€1.6billion).

For more information on companies in this article

Related Content

  • Highway developments to boost east-west transport
    April 4, 2012
    Huge highway developments are being planned and carried out to further improve East-West transport, with Central Asia a key region as Patrick Smith reports History was made in late 2010, when one of the biggest road building projects ever envisaged in Eastern Europe was given the green-light. It was the occasion when Russian president Dmitry Medvedev signed a law that would allow his country to build its segment of a huge highway around the Black Sea. The idea is to complete the 7,140km highway, wi
    Read More
  • Major highway growth in Portugal
    April 12, 2012
    Twenty years ago Portugal was bottom of the European league in terms of roads and safety. A series of ambitious plans has seen the country rise to the top. Patrick Smith reports on how this was achieved In Portugal, out of 3,600km of main national roads (IP+IC), some 1,500km of motorways/high-capacity routes are financed under public-private partnership (PPP) agreements. These are tolled either using shadow tolls (these are being phased out) or real tolls, and plans are in hand to make routes multi free-fl
    Read More
  • Challenges and investment opportunities in East Africa transport infrastructure Sector
    November 21, 2014
    East Africa offers considerable potential for transport infrastructure expansion and investment - Shem Oirere reports Infrastructure, infrastructure and more infrastructure is what is needed to make East Africa the favoured destination and Kenya, Tanzania, Uganda and Rwanda have unveiled grand plans to enhance the infrastructure both nationally and regionally.” This is how market analyst Deloitte introduced its 2014/15 budget analysis for the four countries in July.
    Read More
  • Australia responds to infrastructure funding challenge
    July 13, 2012
    The Global Financial Crisis (GFC) has drastically changed the way governments and the private sector is prepared to procure vital infrastructure projects, says Philip Davies Governments have responded to the GFC by focusing on long term investment in transport infrastructure and shorter term stimulus packages to kick-start economies. As these projects proceed, the focus will shift to maintaining and achieving maximum benefits from assets and future infrastructure funding. The Public Private Partnership (PP
    Read More

Highlighted Content