The World Bank’s Executive Board today approved a €70 million loan (US$80.97 million) for Bosnia and Herzegovina to improve transport connectivity and modernize road infrastructure, key drivers of employment and economic growth.
The project is complemented by an €8.5 million (US$9.99 million) grant from the European Union through the Western Balkans Investment Framework (WBIF), underscoring the strong cooperation of international partners.
The Road Asset Management Improvement Project will address key needs of the road network in the Federation of Bosnia and Herzegovina.
Planned investments include the rehabilitation or upgrading of approximately 150 kilometers of priority main roads in line with the highest safety and resilience standards. Road safety will also be enhanced through the reconstruction of the Mostar North interchange, one of the most dangerous traffic points in the country, as well as through the financing of traffic-calming measures, improved signage, and safer pedestrian crossings in around 20 school zones.
Additionally, the project will support the establishment of a road safety database.
“We are pleased to support Bosnia and Herzegovina’s efforts to improve its road infrastructure in a way that enhances safety, resilience, and connectivity,” said Christopher Sheldon, Head of the World Bank Office for Bosnia and Herzegovina and Montenegro.
“Better roads create new opportunities by connecting people to jobs, markets, and services, helping the country move closer to EU standards,” he added.
In addition to physical works, the project will strengthen planning and management of the road network to ensure adequate infrastructure maintenance and more efficient use of public funds over the long term. The project also includes a Contingent Emergency Response Component (CERC), which allows for the rapid reallocation of funds to support the road sector in the event of an emergency.
Upgrade of these priority roads, many of which serve as key daily transport routes, will improve everyday mobility and expand economic opportunities across the Federation of Bosnia and Herzegovina.
Rural areas, where poverty rates are higher and the population largely depends on agriculture, will particularly benefit from improved access to jobs, services, and markets, the World Bank said.
