Bosnia and Herzegovina (BiH) has 220 kilometers of highway. Since 2006, more than 13 billion BAM has been collected from excises on oil and oil derivatives, as well as tolls. That money, or most of it, was supposed to go to road maintenance and highway construction. However, the largest construction project in BiH, Corridor Vc, is mostly financed by loans.
106 kilometers of highway pass through Republika Srpska (RS). So far, more than one billion and one hundred million BAM have been invested. Currently, two sections of Corridor Vc are being built. The “RS Motorways” say that they plan to start the construction of a new 90 kilometers this year. Since the beginning of 2018, when, through excises for oil and oil derivatives, the allocations for highways have increased, about 436 and a half million BAM have been poured into the account. So far, just over 350 million have been spent.
The income collected on that basis is used by “RS Motorways” to repay credit obligations to European banks, whose money financed the construction of the first 106 kilometers of highways, as well as to prepare planning and study documentation for new highways and expressways. In addition, these funds will be used to finance the construction of the Raca-Bijeljina highway, in the amount of about 80 million BAM.
The Federation of BiH (FBiH) is networked with 114.5 kilometers of highway. Currently, 38 kilometers of the highway are being worked on, with a total value of one billion and 140 million BAM. The “Motorways of the FBiH” say that in the second half of this year they are planning a new investment cycle worth almost two billion BAM, for the construction of 61.5 kilometers of highway. Most of the sections were built on credit, while part of the Sarajevo bypass was built with its own funds. From 2019 to the end of 2021, about half a billion BAM were collected from excises.
When it comes to the use of excise duties, it is important to emphasize that the current investment cycle in which the “Motorways of the FBiH” is located is significantly higher than the amount of total collected excise duties in the last three years. Excise duty is collected and used to repay long-term international soft loans used exclusively for highway construction.
In 2018, excise taxes on fuel were increased. As an explanation, a new investment cycle and improvement of traffic infrastructure were mentioned. Since the beginning of the collection of excise duties on fuel, as well as two tolls, more than 13 billion BAM have been poured into the accounts of the entities. With all that money, without a single BAM of credit, two Corridors Vc could have been completed, economists say.
Aziz Sunje, professor at the University of Sarajevo (UNSA) Faculty of Economics said: ”We should make an analysis of how those excises were spent. Were they spent with the purpose they were supposed to be, and that is the construction of the highway. There are no kilometers, we can see for ourselves. And nobody is held accountable for that.”
According to the Western Balkans Investment Framework, almost four and a half billion euros went to finance Corridor Vc through BiH alone. Most of these funds are loans. BiH has received more than 850 million euros in loans from the European Bank for Reconstruction and Development (EBRD) alone. Carriers are wondering where that money went. They say they drive on the highway that they pay too much for, and there is no enough of it.
Nikola Grbic, Association of carriers for domestic and international transport of RS, noted: ”I will only take into account Gradiska-Doboj. In order to use the highway in one direction, you need to pay 50 BAM. If you bring the merchandise or those goods to the destination Doboj and return, also by highway, you are in total loss.”
From the price of one liter of fuel, the state takes one mark and 10 pfennigs through excise duties, two tolls, and VAT. Numerous economic analyzes show that the complete income from excises goes to current budget spending. As a result, as well as rising oil prices, there are growing proposals to abolish fuel excise taxes at least temporarily.
E.Dz.
Source: BHRT
