November 11 (SeeNews) - The government of Bosnia's Federation said it approved a proposal to negotiate two loans with a total amount of 169.5 million euro ($173.9 million) with the European Investment Bank (EIB), to be used to finance projects for the construction of two motorway sections, part of European Corridor Vc.
The Federation's government intends to seek 162 million euro from the lender for the construction of the Ivan-Ovcari motorway section, it said in a statement on Thursday.
The 10.075-kilometre-long motorway section includes 12 bridges and six tunnels.
The entity's government also plans to borrow 7.5 million euro from the EIB to cover additional costs in the construction of the Ponirak-Vraca motorway section. The length of the section was increased compared with the original project due to changes in the project design and construction permits. The EIB provided a 50 million euro loan for the construction of the section in 2018.
Corridor Vc, about 700 km in length, connects the Adriatic port of Ploce in Croatia to Budapest in Hungary via Bosnia. Its section in Bosnia is some 340 km in length.
The Federation is one of two autonomous entities that form Bosnia and Herzegovina. The other entity is the Serb Republic.
($ = 0.974949 euro)