€65 million loan to support comprehensive investment
programme
The European Bank
for Reconstruction and Development (EBRD) is providing a sovereign loan of up to €65 million to Bosnia and Herzegovina to
support an infrastructure programme aimed at repairing and upgrading the
country’s road network, which has been damaged by severe floods in recent
years. The improvements
of the network will support regional connectivity making it easier for local
companies to transport their products to local and regional customers.
Supporting regional integration is one of the EBRD’s three key strategic
priorities.
The EBRD loan
will be extended to the Public Company “Roads of the Federation of Bosnia and
Herzegovina €ť. The European Investment Bank and the World Bank are expected to
provide parallel financing for other road sections under the company’s priority
investment programme. Due to its
mountainous terrain, roads are the main means of transport in Bosnia and
Herzegovina with 70 per cent of cargo and 90 per cent passengers carried on its
roads. The EBRD loan will contribute to the improvement of the level of service
and traffic safety on the country’s road network.
The EBRD funds
will not only support road improvements but also measures to improve the
company’s management, enhance procurement procedures, improve road traffic
safety systems and procedures, introduce measures to increase climate change
resilience and improve the company’s economic performance. The state-owned company
is in charge of the construction, rehabilitation, maintenance and protection of
a network of 2000 km of main roads in the Federation of Bosnia and Herzegovina. Phil Bennett,
EBRD First Vice President, said: “For the EBRD, this is a very important project
as Bosnia and Herzegovina has been badly hit by severe floods in recent years.
We are pleased to be able to take part in the repair and wider reconstruction
of the road network to achieve a higher level of sustainability and improve the
daily lives of citizens and create new opportunities for businesses €’
Vjekoslav
Bevanda, Minister of Finance and Treasury of Bosnia and Herzegovina, said: “We
are grateful for the EBRD’s support in this very important road innovation
project. We see it as an economic priority to connect our regions via national
roads and international connections. This project is beneficial for the people,
the country and sustainable economic development. €ť Since the
beginning of its operations in Bosnia and Herzegovina the EBRD has invested more
than €1.8 billion in over 130 projects in the country. Strengthening regional
integration is one of the three key priorities of the EBRD under its current
business strategy that aims to re-energise growth in its countries of
operations, promote regional integration and address global and regional
challenges.