- EU grants to finance construction of two motorway sections of Corridor Vc
- EBRD support for Corridor Vc totals €821 million, with a further €570 million in EU grants
- Additional funds for project to extend the water supply in Visoko
Projects financed by the European Bank for Reconstruction and Development (EBRD) in Bosnia and Herzegovina have received further backing from the European Union (EU) and bilateral donors to the Western Balkans Investment Framework (WBIF).
The EU is providing grant funding of €42.8 million for the construction of two sections of Corridor Vc, the key transport link which will connect the country with the EU. The funding comprises €30.8 million for the Rudanka Interchange – Putnikovo Brdo Tunnel section (which was financed by a €150 million EBRD loan) and €12 million to the Putnikovo Brdo Tunnel – Medakovo Interchange (which was financed with a €60 million EBRD loan).
In addition, a €1 million grant has been signed for the water supply extension project in Visoko as well as for repairs to the existing network in the municipality. The project has also been financed with a €4.5 million EBRD loan.
The signing of the grant agreements today was attended by representatives of the EBRD, the EU and the Minister of Finance and Treasury of Bosnia and Herzegovina, Zoran Tegeltija.
Manuela Naessl, EBRD Head of Bosnia and Herzegovina, said: “Together with our European partners we are determined to continue supporting Bosnia and Herzegovina in completing the construction of Corridor Vc. The new motorway is already helping to improve the quality of transport and doing business in the country and we look forward to future progress in construction.”
Johann Sattler, EU Ambassador to Bosnia and Herzegovina, said: “The EU will continue to be a loyal friend and partner to Bosnia and Herzegovina, providing support for projects which have a concrete beneficial impact for people in this country. I am glad that following the signature of today’s grant agreements, further sections of the important Corridor 5c motorway can be built, and also that the water supply around Visoko will be renovated to ensure access to safe drinking water.” The ambassador also added that the EU’s grant contribution over the years has significantly increased, resulting in the current 40 per cent contribution.
Corridor Vc is a pan-European transport project. The section in Bosnia and Herzegovina, which is 325 kilometres long, will cross the country from north to south, eventually connecting the Adriatic port of Ploče in Croatia with the Hungarian capital, Budapest.
The motorway is primarily co-financed by loans from the EBRD and European Investment Bank (EIB) and grant resources from the EU. To date, the EBRD has provided the project with loans worth €821 million from its own resources, while investment and technical assistance grants extended by the EU have totalled more than €570 million.
The water extension project in Visoko will enable new consumers to connect to the network and at the same time, by providing running water, improve the living standards of the population in the municipality. It will also help reduce water loss, increase resilience to climate change and improve the quality of supply to existing customers through repairs to the existing network.
Source: EBRD News
