Bosnia Herzogovina highway project receiving EBRD loan

A loan from the European Bank for Reconstruction and Development (EBRD) worth €180 million will help to pay for the construction of the Corridor Vc highway project. This highway is of key importance for the economic development of Bosnia and Herzegovina as it will provide and improved transport connection with Europe. The loan will help to pay for the construction of three new sections of Corridor Vc, measuring some 16km. The loan will be provided in two tranches, with the first of up to €120 million and b
September 12, 2018 Read time: 2 mins
Financing will pay for work to sections of the Corridor Vc highway for Bosnia Herzegovina
A loan from the 1166 European Bank for Reconstruction and Development (EBRD) worth €180 million will help to pay for the construction of the Corridor Vc highway project. This highway is of key importance for the economic development of Bosnia and Herzegovina as it will provide and improved transport connection with Europe.


The loan will help to pay for the construction of three new sections of Corridor Vc, measuring some 16km. The loan will be provided in two tranches, with the first of up to €120 million and being used to co-finance the construction of a motorway section from Poprikusa to Nemila along with the 1054 European Investment Bank (EIB). It will also help pay for construction of Tunnel Ivan. Meanwhile the second tranche 2 of up to €60 million will help to finance the construction of a highway section from the Mostar South Interchange to Tunnel Kvanj.

The loan is expected to be co-financed by an investment grant in the amount of €11.8 million from the European Union, through the Western Balkans Investment Framework (WBIF) which is expected to be approved in December 2018.

The project will improve mobility and traffic safety. The loan is part of a wider commitment following the signing of a Memorandum of Understanding in February 2018 between the EBRD and the Ministers of Transport and Communications of the Federation of Bosnia and Herzegovina and Republika Srpska for an investment programme of over €700 million for the period 2018-2020.

Corridor Vc is a branch of the fifth Pan-European corridor and with a total length of 700 km will connect Hungary and eastern Croatia to Bosnia and Herzegovina and the Adriatic Sea. The longest part of the route goes through Bosnia and Herzegovina, while the road also serves as the shortest connection of the eastern and southern parts of Croatia.

Since the beginning of its operations in Bosnia and Herzegovina the EBRD has invested €2.1 billion in almost 150 projects in the country.

Finance & Funding

For more information on companies in this article

Related Content

  • Bosnia strategy
    March 1, 2012
    Bosnia & Herzegovina plans to invest some €2.9 billion in constructing highways by 2017.
    Read More
  • Investing in Albania's roads
    March 22, 2012
    The European Bank for Reconstruction and Development (EBRD) is providing major funding in Albania’s road network. A loan worth €53 million will help pay for the construction of the new Fier and Vlore bypasses. This loan will aid further development of the Albanian road network and boosting economic integration in the country by co-financing the construction of the two bypass roads, located in south-western Albania. The EBRD loan is structured in two tranches and will be used by the Albanian Road Authority t
    Read More
  • Ring road for Sarajevo nears completion
    December 17, 2012
    The Sarajevo Ring Road in Bosnia and Herzegovina is expected to be completed by October 2012. The construction of the 5.6km long highway from Josanica to Butila is being carried out by a consortium of companies made up of HP Investing and Strabag. The completed Ring Road will be part of the future Corridor Vc motorway. Bosnia and Herzegovina Federal Minister of Transport and Telecoms, Enver Bijedic, and State Minister of Telecoms and Transport and Director of the roads company JP Ceste FBiH, Filip Vujevo, r
    Read More
  • Serbia’s pan-European Corridor X is in the slow lane
    October 23, 2017
    It’s been slow progress on Serbia’s Corridor X project. Gordon Feller reports. Back in the early 2000’s, the European Union undertook an ambitious programme to link the main cities of its south-eastern region. This involved connecting five key seaports – the Greek cities of Patras, Igoumenitsa, Piraeus and Thessaloniki as well as Romania’s Black Sea city of Constanta. Initially the plan involved two motorways across Greece. The first was a new 780km route including a branch to Ormenio on Greece’s north-eas
    Read More

Highlighted Content