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Sarajevo Times > Blog > BUSINESS > How much will it cost BiH to build the Highway?
BUSINESS

How much will it cost BiH to build the Highway?

Published April 14, 2026
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The construction of Corridor 5C has been presented for years as a key infrastructure project for Bosnia and Herzegovina. While the authorities have announced the opening of new sections as early as this year, the total costs are rising, and there is still no clear deadline for completion. In the meantime, countries such as Poland are implementing similar projects faster and at lower costs, which further raises the question of the efficiency of domestic implementation.

Although two decades have passed since the planning, the Corridor Vc motorway has not yet connected the north and south of the country. The Public Company Autoceste Federation of BiH is nevertheless announcing progress, with a plan to open almost 40 kilometers of new sections by the end of the construction season.

These are the sections Putnikovo Brdo 2 Tunnel – Medakovo, 7.2 kilometers long, Medakovo – Ozimica with a total of 21.6 kilometers, then the remaining part Nemila – Vranduk of two kilometers, the Vranduk – Ponirak section of 4.8 kilometers, Ponirak – Vraca, or the Zenica tunnel of 3.4 kilometers, and the part Zenica – Donja Gračanica Tunnel, the so-called northern section, 0.65 kilometers long.

According to the announcements, most of these sections, including Medakovo – Ozimica, Nemila – Vranduk, Vranduk – Ponirak and the Zenica – Donja Gračanica Tunnel, should be opened by the end of the current construction season. The Putnikovo Brdo 2 – Medakovo section is expected after a technical inspection, while the Ponirak – Vraca will be opened to traffic only after connecting with the Zenica North – Nemila section.

Corridor 5C was conceived as a key transport artery that should better connect Bosnia and Herzegovina with the rest of Europe. However, its implementation has turned into a slow, expensive and fragmented process, marked by long-term tenders, problems with expropriation, complex permit procedures, but also political obstruction between the entities.

Transport expert Mirzet Sarajlić points out that the problems are multi-layered.

“It is a complex story, in any case both factors are at stake, both the topography of the terrain and inefficient project management. We should have given one large contractor to create an integrated solution, and we did not do that, but instead fragmented the corridor and now we have numerous lots.”

It is precisely because of this approach that it is clear that construction will take significantly longer than originally planned, while the price is continuously rising. According to official data from the FBiH Government and Autocesta FBiH, more than 2.5 billion convertible marks have been invested in the project so far, although less than half of the total project has been implemented.

Economist Admir Čavalić warns that the final price could be many times higher.

“It is very likely to be 6 to 7 billion BAM, maybe even 8, due to delays, inflation and the fact that we are not using the effects of economies of scale, but are dividing everything into small lots, which ultimately costs taxpayers.”

Unlike Bosnia and Herzegovina, the example of the Via Carpatia in Poland shows a different model. It is a project about 580 kilometers long that has been intensively built since 2014, with about 200 kilometers already completed, while an additional 342 kilometers are under construction. A similar, more efficient approach is visible in neighboring Montenegro.

Sarajlić emphasizes that the key is in the organization of the project.

“The most obvious example is Montenegro, which is smaller than Bosnia and Herzegovina, and has entrusted the construction to a global corporation, and the work is progressing much faster.”

It is important to emphasize that the construction of Corridor 5C is mostly financed by borrowing, primarily from the European Bank for Reconstruction and Development and the European Investment Bank, but also from other international creditors. The debt already reaches billions, and it will grow further as the work continues.

Once the project is completed, the key question will not only be when citizens will drive on this highway, but also who will repay the debts incurred during its construction and how, Federalna writes.

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