Largest post-War Investment in Infrastructure: TC is asking for a 20 million BAM Loan

October 28, 2017 3:15 PM

The Directorate of Regional Roads of the Tuzla Canton received the Cantonal Government’s approval to borrow 20 million BAM from the Development Bank of the Federation of BiH. If the loan gets approved, this will be the biggest investment in roads in the region since 1991.

The decision on loan must be confirmed by the Cantonal Assembly and then the decision must be approved by the Development Bank of FBiH.

“We have a promise that the interest on the debt of 20 million BAM will be 2.5%. The loan should be repaid over a period of 12 years, which means that the monthly installment would amount to 170 thousand BAM. The Directorate’s revenues at the monthly level amount to 1,071,803 BAM, so that we would spend 16% of our monthly income on credit,  Agan Delibajric, the director of the Directorate of Regional Roads said.

Transport infrastructure in the area of ​​TC is in poor condition and, as stated in the proposal of the decision to which the Government gave its consent, “a comprehensive reconstruction is required on most of the regional roads and at least some rehabilitation needs to be done on all.”

Delibajric says that projects for realization already exist and points out that the money from the loan will not be used “for this only.”

“Among the projects that have been prepared are the roundabout in Gracanica, solving the stone road on Majevica and on the Priboj-Sapna route, both lengths of about three kilometers. Also, a project for relocating the bridge on the Spreca Riber in Zivinice is being prepared, the formation of a third lane from the roadabout in Par Selo to the circular stream at the International Airport Tuzla, as well as the bridge on the Janji River in Teocak that connects the two entities,” Delibajric stated.

The aforementioned road projects in TC, which are in poor condition, technically meets the characteristics of regional roads.

Given that the Development Bank of the FBiH is state-owned, the funds would be immediately operational because the Directorate of Regional Roads will not have to issue public calls for contractors. Of course, this is all provided the Cantonal Assembly and the Development Bank approve the loan.



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