The Minister of Finance and Treasury of Bosnia and Herzegovina, Srđan Amidžić, and the head of the European Bank for Reconstruction and Development (EBRD) Office in Bosnia and Herzegovina, Manuela Nesl, signed today in Sarajevo the EBRD loan agreement in the amount of 110 million euros for the construction of the Corridor 5C highway on sections Mostar north-Mostar south.
Expressing his satisfaction with the signed contract, Amidžić specified that these funds will finance the construction of 15 kilometers of highway and two interchanges on that section.
According to him, the loan repayment term of 110 million euros is 15 years, with a grace period of four years.
Amidžić added that discussions have also begun on another important project, the financing of part of the works on the main road from Foča to Hum, i.e. the road to Šćepan Polje in Montenegro.
“The expected value of this project is 100 million euros, of which grant funds are 40 million euros. The length of the section is 19.5 kilometers and it is an important infrastructure project,” emphasized Amidžić.
EBRD Director for Infrastructure Suzan Goranson said that the funds provided for in the signed loan agreement are available from today to finance the key bridge section.
She added that the project will be financed with a 150 million euro grant from the investment framework for the Western Balkans, but also with funds from domestic banks that were selected through a public tender.
“The project consists of the Mostar north loop, the Mostar south loop and about 15 kilometers of two-lane road. It will improve the road infrastructure, the transport of people and goods, connect city streets, reduce transportation costs and contribute to safety,” said Goranson.
She added that the EBRD started financing the construction of the “5C” Corridor, which connects Budapest with the Adriatic, in 2008 and that since then it has allocated more than a billion euros for these purposes.
The Deputy Head of the EU Delegation in Bosnia and Herzegovina, Adebayo Babajide, said that the EU has provided more than 150 million euros in grants to support the construction of this important section, and that the contract will be signed next year.
He pointed out that Corridor 5C represents one of the key transport arteries and trade links of Bosnia and Herzegovina with its neighbors and the wider road network in the rest of Europe, Srna writes.
“The benefits for the local population are numerous, from the reduction of travel time to traffic safety,” said Babajide and added that the EU has so far provided more than 87 million euros in non-refundable support for the construction of Corridor 5C.
In addition to two interchanges and 15 kilometers of road on the Mostar North-Mostar South section, five tunnels and 10 viaducts will be built.
Photo ©️ Srna
