The Turkish construction company Cengiz Insaat Sanayi ve Ticaret A.S. has suspended all work on the Medakovo – Ozimice section of Corridor Vc, citing overdue payments exceeding 130 million BAM from Autoceste Federacije BiH.
According to company representatives, the contractor has not received payments for over four consecutive months, despite repeated appeals to the investor to fulfill contractual obligations. The unpaid amount threatens not only the progress of the project but also the livelihoods of hundreds of workers.
This unexpected halt will directly impact more than 50 subcontractor companies and over 1,000 workers, most of whom are local employees now facing sudden job loss. Many companies involved in supplying materials, machinery, and services are also left in uncertainty, potentially facing major financial consequences.
The contract for the construction of the Medakovo–Ozimice section was signed on March 9, 2023, with Cengiz Insaat selected as the main contractor. The project, valued at €361.75 million (excluding VAT), was envisioned as a key section of the Corridor Vc highway and scheduled for completion within 30 months of project commencement.
The project was to be financed through a loan agreement with the European Investment Bank (EIB) and grants from the European Union under the Connectivity Agenda via the Western Balkans Investment Framework (WBIF).
Neither Autoceste Federacije BiH nor relevant government ministries have yet publicly commented on the situation. The delay raises concerns about transparency, accountability, and the overall pace of Bosnia and Herzegovina’s infrastructure development under international investment frameworks.
LOT 2 Medakovo – Ozimice section spans 21.5 kilometers and includes: 6 bridges, 1 tunnel (approx. 2.2 km), 5 underpasses and 1 overpass, 7 hydrotechnical structures, 2 interchanges, Toll infrastructure (main and side toll stations) And Maintenance and traffic control center.
This strategically important project was expected to significantly improve transport connectivity within Bosnia and Herzegovina and contribute to regional economic development as part of the larger Corridor Vc initiative.
