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

  • Road transport key to Africa's trade links
    February 17, 2012
    Road transport is the key to improving Africa's links within its own territory, and further afield as Patrick Smith reports. Development of road transportation is the key to the future of the African economy, and countries on the continent are making great strides. According to a report by a transport infrastructure expert at the New Partnership for Africa's Development (NEPAD), within the next 15 years the value of trade in Africa could reach US$250 billion if a $32 billion investment is made to integrate
    Read More
  • Poland's A1 motorway progressing well
    February 9, 2012
    The second major phase of a north-south motorway in Poland is well underway. It will reduce congestion and improve safety as Patrick Smith reports Before the whistle blows to herald the start of Euro 2012, Poland's main seaport Gdansk will boast new roads, a new airport and a new stadium. The historic city in the north of the country on the Baltic coast will be one of the venues for football's 14th European Championship, being co-hosted by Poland and Ukraine.
    Read More
  • Russia to commission new Moscow-St Petersburg highway by 2020
    June 20, 2017
    Final delivery of the final stretch for Russia’s key highway project looks set to be delayed – Eugene Gerden writes. I now looks as if Russia’s most ambitious project in the field of road building in recent years, the building of a new high-speed road link between Moscow and St Petersburg, the country’s largest cities, will not be complete in time. The project was set up by the Russian government and several private investors. According to initial state plans, building of the new road should have been compl
    Read More
  • Chinese funding will help pay for Macedonia road project
    October 4, 2013
    In Macedonia a new 50km section of highway will be constructed, with €574 million of financing coming from China's Export-Import Bank. The Exim Bank credit line to Macedonia will be used to build a the highway connecting Skopje and Stip. The new route will also link Stip with pan-European transport corridor 10. The loan will carry an interest rate of 2% and will have a 20 year term with a five year grace period. Macedonia is close to completing work on the corridor 10 road project, which is worth €300 milli
    Read More

Highlighted Content