340 Million Euros Loan Agreement signed for Section at Corridor 5C

Today, Deputy Chairman of the Council of Ministers of Bosnia and Herzegovina and Minister of Finance and Treasury Vjekoslav Bevanda signed a loan agreement worth EUR 340 million with representatives of the European Investment Bank (EIB) Mateo Rivellini and Jakop Lance Orlando for the construction of the Poprikusa – Medakovo section on Corridor 5c.

After signing the agreement, Minister Bevanda emphasized the importance of this agreement not only for the territory of the Federation of BiH, but also its state and regional significance in the construction of modern infrastructure, increasing the safety and capacity of the highway, BHRT writes.

“Every project related to the construction of the highway on Corridor 5c is extremely important, and every kilometer is our new step towards Europe. That is why this contract, in addition to its financial value, has a positive effect for our citizens who, thanks to these funds, will have 35 kilometers of new highways on the section Poprikusa – Medakovo “, said Minister Bevanda.

He added that this is a significant contract for both construction companies and their engagement on the 35-kilometer section of the Pan-European Corridor 5c motorway that connects Hungary and eastern Croatia with Bosnia and Herzegovina and the Adriatic Sea.

According to Minister Bevanda, the total value of the project in this part of Corridor 5c is estimated at EUR 391 million, of which EUR 340 million is an EIB loan, and EUR 51 million will be provided from own funds and other sources.

“The loan allocation is in the Federation of BiH, and the implementer of the Project is JP Autoceste Federacije BiH. The terms of the loan are favorable with a repayment period of 25 years, including a grace period of six years, “said Minister Bevanda.

He thanked the representatives of the EIB, but also the EU Delegation to BiH who cooperated on this project during negotiations and other procedures in order to achieve the best conditions for financing the construction of another important section of the highway on Corridor 5c.

Due to the application of epidemiological measures due to the COVID-19 virus pandemic, this agreement was signed correspondently without the usual ceremonies.