European Bank for Reconstruction and Development (EBRD) appointed a loan in the amount of 65 million EUR for BiH in order to support the reconstruction and improvement of the road network that suffered damage in the floods from May 2014.
These repairs will improve the regional connectivity and facilitate transportation of goods to local and regional buyers. Support for regional cooperation is one of ERBD’s key strategies.
Contract on loan was signed today by the Minister of Finance Vjekoslav Bevanda and Vice-President of EBRD Phil Bennet, and the funds will be redirected at the account of Roads of FBiH, while the European Investment Bank and the World Bank will provide funds for simultaneous repair of other roads that are the priority of Roads of FBiH.
After the signing of the contract, Bevanda told the press that today they are finalizing two very important projects and that he is very glad that the EBRD has recognized the importance of these projects and approved the loan which will, in the first plan, be used for reconstruction of roads damaged in the floods, and also for reconstruction of some new sections, construction of bypasses and rehabilitation of road sections that are in poor condition.
According to Bevanda, expectations are that the project will be completed by December 21, 2019. The agreement includes the obligation of FBiH authorities to provide around six million EUR in the budget for next year for expropriation costs and revolving funds for VAT.
Bevanda also expressed satisfaction with the signing of amendments to the Contract on loan in the amount of six million EUR that refers to the project of construction of roads in Sarajevo, i.e. the completion of the Stup loop.
Since the beginning of its operations in BiH, the EBRD has invested more than 1.8 billion EUR in more than 130 projects.
(Source: klix.ba/photo: biznisinfo.ba)
