At today’s session, the Council of Ministers of Bosnia and Herzegovina adopted the initiative of the Ministry of Finance and Treasury and appointed a delegation to negotiate a five million-euro Mostar Solid Waste Loan Agreement between Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD).
This project is closely related to two other projects aimed at adequate waste disposal in the city of Mostar for the benefit of all city residents.
The funds are intended for the implementation of the Adjustment Plan for the regional landfill Uborak – Budevci, including the closure and rehabilitation of the existing area for waste disposal, construction of a new area and leachate treatment plant from the landfill.
The loan has been allocated to the Federation of BiH, and the end user will be the City of Mostar, with a repayment period of 15 years, with a three-year grace period.
The realization of this project is of vital importance for the city of Mostar and the local community, especially for the settlement of Vrapcici.
After the negotiations, the Ministry of Finance and Treasury will submit to the Council of Ministers of BiH a draft agreement with the grounds for its conclusion in accordance with the Law on Borrowing, Debt and Guarantees of Bosnia and Herzegovina.
The BiH Council of Ministers also adopted the initiative of the Ministry of Finance and Treasury and appointed a delegation to negotiate a loan agreement between Bosnia and Herzegovina and the Council of Europe Development Bank to finance a project to build a cultural and sports center in Mostar.
It is a loan of 12 million euros from the Council of Europe Development Bank, and with the construction of a cultural and sports center, residents of this city, but also Herzegovina, should get a hall where they can meet their needs in the field of culture and sports. The project will be funded from various sources.
The justification of this project is multiple, both social and economic, as well as health, cultural, educational, promotional for the investor and society and the region as a whole.
At the proposal of the Ministry of Finance and Treasury, the BiH Council of Ministers adopted an initiative to conduct negotiations to conclude a Financing Agreement between Bosnia and Herzegovina and the European Investment Bank (EIB) (Corridor 5c, Ovcara – Mostar North) in the amount of EUR 300 million.
The project involves financing the construction of the section of the highway from Ovcara to Mostar North on Corridor 5s, and the construction of the highway will be divided into sections Ovcara – Mostar North and Mostar North – Mostar South.
The section from Ovcara to Mostar north consists of three parts and includes Ovcari – entrance to the Prenj tunnel, Prenj tunnel and Prenj tunnel – Mostar north) in a total length of about 35 kilometers. It is planned to be financed with these loans, but also with an EBRD loan.
The loan will be allocated to the Federation of Bosnia and Herzegovina (JP Autoceste Federacije Bosne i Hercegovine), with a repayment period of 25 years, including a six-year grace period.
After the negotiations, the Ministry of Finance and Treasury will submit to the Council of Ministers of BiH a draft financing agreement with the grounds for its conclusion.
