European Investment Bank (EIB) lends €140 million for construction of 12.4 km section of highway along pan-European corridor Vc, including four viaducts, two twin-tube tunnels, three bridges and an operation and traffic control centre
The European Union will complement the financing with a grant worth more than €64 million
Pan-European Corridor Vc connects Budapest with port of Ploče at the Adriatic Sea
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 Zenica-Doboj.
The investment increases road safety in Bosnia and Herzegovina and contributes towards 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 South East 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 has 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 emphasise the importance of each kilometre 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 kilometres 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.
The EIB has signed an €11.8 million EU grant with Bosnia and Herzegovina to finance the construction of the 6.9 km-long Tarčin-Ivan section of the pan-European Corridor Vc. The EU grant comes from the Western Balkans Investment Framework (WBIF) and complements an earlier EIB loan worth €40.4 million approved by the EU bank for the same section of the Corridor Vc. For the entire section including the 1 720 m long double-tube Tunnel Ivan, the European Union has provided a total of €23.3 million in grants in addition to financing provided by the EIB and the European Bank for Reconstruction and Development (EBRD), complementing funds provided by Bosnia and Herzegovina. This agreement marks another important step forward for EU assistance to the country in the construction of the Corridor Vc.
The EIB Group will provide €1.7 billion to support the social and economic recovery of the Western Balkans from the COVID-19 pandemic. This is part of the €3.3 billion financial support package for the region announced on 29 April by the European Commission and follows the Team Europe efforts to support the Western Balkans.
The EIB will provide EUR 10 million to Raiffeisen Leasing doo Sarajevo, Bosnia and Herzegovina and unlock new financing for local small and medium companies. The EIB loan will allow the company to finance projects and working capital for SMEs operating in industry, tourism and services sectors, as well as agriculture. This support comes at a time when SMEs are the hardest hit by the COVID-19 pandemic and are facing unprecedented challenges.