Deputy Chairman of the Council of Ministers of Bosnia-Herzegovina and Minister of Finance and Treasury Vjekoslav Bevanda and European Bank for Reconstruction and Development (EBRD) Director for Central and Southeastern Europe Charlotte Ruhe signed two public transport financing agreements in Sarajevo on Wednesday.
Bevanda and Ruhe signed a loan agreement for the Sarajevo Public Transport Project 1 – procurement of trolleybuses and spare parts and a loan agreement for the Sarajevo Public Transport Project 2 – reconstruction of the tram tacks, Federal News Agency reports.
According to Minister Bevanda, the two agreements will improve urban transportation in Sarajevo, and contribute to environmental protection and reduction of air pollution.
The first contract worth 15 million euros relates to the procurement of trolleybuses and spare parts, and part of the funds is planned for consultancy services during the implementation of this project.
The second agreement will provide 20 million euros for the rehabilitation of 19.5 kilometers of the Sarajevo tram tracks, which also plays a significant role in protecting the environment and reducing the use of buses, Bevanda noted.
The agreement represents the second phase of improving public transport in the canton, and a third phase is planned, which involves the procurement of trams.
“Both loans are allocated to the Federation of Bosnia and Herzegovina and the Sarajevo Canton, respectively, and the terms of the loan are very favorable with a repayment period of 15 years, including a grace period of two and three years on repayment of the principal,” Bevanda explained.
The procurement project for the trolleybuses should be completed by December 2021 and the reconstruction of the tram tracks by December 2022.