POLITICS

Bosnia-Herzegovina takes 140 Million Euros Loan for Highway Construction

 

Deputy Chairman of the Council of Ministers of Bosnia-Herzegovina and Minister of Finance and Treasury Vjekoslav Bevanda and Director of the European Investment Bank (EIB) for Slovenia, Croatia and the Western Balkans Mateo Rivellini signed on Thursday a Financing Agreement relating to the construction of two motorway sections on the Corridor 5C, Avaz news portal reports.

Bevanda said at a press conference that the agreement signed had secured 140 million euros loan from the European Investment Bank intended for the construction of a 6.9 kilometer highway on the Tarcin-Ivan section, from Sarajevo to Mostar.

He stressed that the works were demanding, including the construction of the Ivan tunnel and two viaducts on that section. The second part of the funds will be directed to the Poprikusa – Nemil section in Zenica-Doj Canton, with a total length of 5.5 kilometers and a 3.6-kilometer two-way tunnel will be built.

“Needless to say, how important each kilometer of the highway is on Corridor 5C, how complex these jobs are. That is why we are grateful that they recognize such important projects at the European Investment Bank. The construction of the Tarcin – Ivan section is expected by 2022, and works on the Poprikusa – Nemila section by 2023,”Bevanda said.

He also stated that the loan was allocated to the Federation of BiH, and the beneficiary is the Public Company “Highways of the Federation of BiH”.  The terms, he said, are favorable, the repayment period is 25 years, including a grace period of six years. The interest is fixed or variable, agreed before each installment is paid. EIB Director for Slovenia, Croatia and the Western Balkans Rivelini characterized Corridor 5C as one of the most important infrastructure projects in BiH.

The head of the EU Delegation to BiH, Johann Sattler, stressed that the construction of the highway means shorter travel times, increased traffic safety, and reduced levels of air pollution, which is especially important for major industrial cities.  This also means better trade links with neighbors, but also with the EU, which will create jobs.

 

 

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