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

  • Russia’s US$28 billion road and bridge works
    November 29, 2013
    A series of major transport projects worth a combined value of over US$28 billion are set to significantly enhance connectivity between various parts of Russia. These include the Moscow-St Petersburg highway, work to the transport system in the Rostov region and two new bridges: one over the Belaya river in Ufa, the other over the Kama river in Izhevsk. The tender process for the $4.46 billion contract to build, maintain, repair, and operate a section of the Moscow- St Petersburg highway has been announc
    Read More
  • Russia seeks outside investment in road building
    November 6, 2012
    The Russian road building industry is on the verge of big changes as it bids to improve quality and speed of construction says Eugene Gerden The Russian road building industry is on the verge of big changes as the national government considers creating conditions to attract foreign companies to build roads in the country. According to a recent order of President Vladimir Putin, due to poor quality and high cost of road construction, there is a need for the development of a mechanism to attract foreign compa
    Read More
  • A6 project between Weinsberg and Wiesloch/Rauenberg set to start
    January 26, 2017
    Work will soon start on the €1.3 billion project to widen a stretch of the A6 motorway, one of Germany’s most congested highways. Both sides of the motorway between the Weinsberg and Wiesloch/Rauenberg junctions will be expanded. On 25 km of the section being expanded under the project – altogether 47.1 km – the number of lanes will be increased from four to six. The project also encompasses the construction of the 1.3km-long Neckartal Bridge. Preparatory work for the public-private partnership has
    Read More
  • Spanish highway project to get EIB A-rated bond issue?
    April 20, 2012
    The European Investment Bank (EIB) is reported to be in talks with the sponsors of the A-66 Benavente-Zamora highway public private partnership (PPP) in Spain over a possible bond financing deal, which would see the Bank provide subordinated debt for an A-rated bond issue. The possible bond issue would be a further greenfield project to launch the European Union’s Project Bond 2020 initiative, with its initial pilot stage being managed by the EIB.
    Read More

Highlighted Content