EIB and EU to support Bosnia and Herzegovina for developing highway network

This will extend the existing highway network along the Corridor Vc with two new road sections, Tarčin-Ivan, located in the Canton of Sarajevo, and Poprikuše-Nemila in the Canton of Tuzla-Doboj.

The European Investment Bank (EIB) and the European Union will support Bosnia and Herzegovina (BiH) with a €204 million support package to develop a modern highway network along the Bosnian section of the pan-European Corridor Vc, a key road connection between Hungary, Eastern Croatia and the port of Ploče at the Adriatic Sea.

The European support package includes a €140 million investment from the EIB and a grant worth more than €64 million from the European Union for the construction of a 12.4 km highway infrastructure with four viaducts, two twin-tube tunnels, three bridges, one railway overpass, one road interchange, and an operation and traffic control centre. This will extend the existing highway network along the Corridor Vc with two new road sections, Tarčin-Ivan, located in the Canton of Sarajevo, and Poprikuše-Nemila in the Canton of Tuzla-Doboj.

The investment increases road safety in Bosnia and Herzegovina and contributes towards the faster economic and social development of the country by creating a quicker, safer and more reliable long-distance transport link with Croatia, one of the country`s key export markets. The Corridor Vc is part of the extended TEN-T Mediterranean core road network and the southeast Europe Transport Observatory (SEETO), with 335 km of the 702 km-long road network located in Bosnia and Herzegovina.

Bosnia and Herzegovina's Finance Minister Vjekoslav Bevanda and the EIB's Head of Division for Lending Operations in Croatia, Slovenia, and the Western Balkans Matteo Rivellini signed the finance agreement today in Sarajevo with the Head of the EU Delegation and EU Special Representative in BiH, Ambassador Johann Sattler attending the ceremony.

EIB Vice-President Dario Scannapieco said: "The EIB is particularly proud of our continuing commitment to the economic and social development of Bosnia and Herzegovina and the Western Balkans. This time, the EIB and the EU have blended their funds to create a €204 million financing package to help Bosnia and Herzegovina develop a modern highway network and enable easier and faster movement of people, goods and services along the key pan-European Corridor Vc. This investment will have a positive economic impact beyond Bosnia and Herzegovina, and will benefit citizens and businesses in Croatia, Hungary, and the Western Balkans."

Ambassador Johann Sattler, Head of the EU Delegation and EU Special Representative in BiH said: "The EIB investment complements the joint efforts by the EU, the EBRD and Bosnia, and Herzegovina to complete the Corridor Vc motorway. I am pleased that Bosnia and Herzegovina have secured financing for additional sections of Corridor Vc because modern transport links are key for growth and the economic development of any country aspiring to join the European Union. Recognising these benefits for its citizens, the European Union will provide over €200 million in grant funding to speed up the construction of 13 major connectivity projects in Bosnia and Herzegovina."

Bosnia and Herzegovina's Finance Minister Vjekoslav Bevanda said: "There is no need to emphasize the importance of each kilometer on the Corridor Vc motorway or how complicated these activities are. Therefore, we are grateful to the European Investment Bank for their recognition of projects of such importance. I hope the deadlines will be observed and that we will soon see new construction sites and new motorway kilometers in BiH."

To date, the EIB has invested €1.2 billion in transport projects in Bosnia and Herzegovina, bringing total investment across the country to more than €2.6 billion delivered in 72 different projects.