Bosnia’s government said it has approved a draft agreement with the European Investment Bank (EIB) for a 100 million euro ($123.1 million) loan intended to finance construction works on a section of European transport Corridor Vc.
The proceeds of the loan will be used towards the cost of a new 20.9 km section of Corridor Vc, including three subsections Buna – Pocitelj, Tunel Kvanj – Buna and Mostar Jug – Tunel Kvanj, the Council of Ministers said in a statement following a session on Wednesday.
The new road is located in the Herzegovina-Neretva Canton and is part of the Pan-European Corridor Vc which connects the port of Ploce in Croatia with Hungarian capital Budapest via Bosnia.
The loan repayment period is 25 years, including a six year grace, and will be allocated to Bosnia’s Federation, one of the two entities that form Bosnia and Herzegovina.
The total estimated cost of the project is 227 million euro, of which the EIB loan is 100 million euro, a loan from the European Bank for Reconstruction and Development is 60 million euro, 39 million euro will come from an investment grant from WBIF, while the Federation and its road company Autoceste will contribute 28 million euro.
The loan agreement has been sent to Bosnia’s collective presidency for approval.
(Source: seenews)
