REHABILITATION RS RAIL CORRIDOR VC

Promoter – Financial Intermediary

ZELJEZNICE REPUBLIKE SRPSKE

Location

• Bosnia and Herzegovina

Description

Rehabilitation of the Samac-Doboj-Rjecica railway section (80 km) of Corridor Vc through the Republic of Srpska. It is comprised of two sections: 62km single-track line Samac-Doboj and 18 km double-track line between Doboj-Rjecica

Objectives

The project is the section of the railway Corridor Vc through the Republic of Srpska. The Mediterranean Corridor (Corridor Vc) connects Bosnia and Herzegovina (BiH) to Central European markets (Budapest) in the north and the Port of Ploce on the Adriatic coast in Croatia in the south, and therefore is part of the Core Network Corridors of the Trans-European Transport network (TEN-T) extension into the Western Balkans and South East Europe Transport Observatory (SEETO) Core Network. It is thus part of the long-term sustainable development plans of the European Union and its partners. The investment will facilitate regional commerce, sustainable growth and will have a positive impact on the wider economies of the Republic of Srpska and BiH. The project is therefore eligible under the ELM 2014 – 2020. The project will result in savings in vehicle operating costs, transport time, maintenance costs and will enhance the capacity and reliability of the rail sections and traffic safety. It is expected to contribute to the modal shift from road to rail and, thereby, present environmental and road safety benefits. Thus the project also contributes to climate change mitigation.

Sector(s)

• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 60 million

Total cost (Approximate amount)

EUR 200 million

Environmental aspects

The project works are expected to be mainly within the existing right of way; therefore, potential negative environmental and social impacts are likely to be minor and amenable to standard mitigation and management measures. If situated in the EU, the project would likely fall within Annex II of Directive 2011/92/EU (the EIA Directive) and therefore be subject to screening. As a potential candidate country to the EU, BiH has adopted the relevant EU Directives, including the EIA Directive (2014/52/EU). An environmental impact assessment (EIA) for the Samac-Doboj section was done in 2016, whereas an environmental report for the Doboj-Rjecica section was done in 2013. The compliance of the project's preparation and implementation arrangements with EIB environmental and social standards will be analysed during the appraisal.

Procurement

The Bank will require that the Promoter ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules. In particular, the Bank will require that calls for international tenders be published in the Official Journal of the EU in accordance with the Bank's Guide to Procurement.

Status

Under appraisal - 28/07/2020