BUSINESS

340 Million Euros Loan for the Medakovo – Poprikuse Motorway Section

The Government of FBiH has accepted the debit of the FBiH under the Financing Agreement between the European Investment Bank and BiH for the implementation of the Medakovo – Poprikusa motorway section on Corridor Vc for up to 340.000.000 euros, for the Public Utility (P.U) Autoceste Federacije BiH d.o.o. Mostar.

The project concerns the construction, mainly on the new route of a 35 km long section of the pan-European Corridor Vc motorway which connects Hungary and eastern Croatia with BiH and the Adriatic Sea.

This project is part of a larger program of construction of Corridor Vc (total length of 335 km) on the territory of BiH, which aims to raise the functionality of the existing road corridor north-south to a higher level while building modern infrastructure and increasing road safety and capacity.

The loan repayment period is 25 years, with a six-year grace period.

The funds will be transferred by the FBiH on a credit basis to the P.U Autoceste FBiH, which is the end-user and the debtor under this loan.

During the period of project implementation, it is not necessary to provide financial resources in the FBiH Budget for its additional co-financing.

Yesterday, the Federal Minister of Finance was given the authority to sign the Subsidiary Agreement and the Subcontract, as the FBiH Government’s Public Relations Office stated.

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