SARAJEVO (Bosnia and Herzegovina), March 21 (SeeNews) – Bosnia's government said it has approved a draft agreement with the European Investment Bank (EIB) for a 50 million euro ($61.4 million) loan intended to finance construction works on a section of European transport Corridor Vc.
The proceeds of the loan will be used towards the cost of construction of a new 2.8 km long section of Corridor Vc, including a 2.4 km long tunnel, between Ponirak and Vraca in the central part of Bosnia and Herzegovina, the Council of Ministers said in a statement following a session on Tuesday.
The draft loan agreement has been sent to Bosnia's collective Presidency for approval.
The section is located in the Zenica-Doboj Canton. Pan-European Corridor Vc connects the port of Ploce in Croatia with Hungarian capital Budapest via Bosnia.
The loan repayment period is 25 years, including a six year grace, and will be allocated to Bosnia's Federation, one of the two entities that form Bosnia and Herzegovina.
The total estimated cost of the project is 101 million euro, to be financed with the EIB loan of 50 million euro, a 26 million euro loan from the EBRD, an investment grant from WBIF in the amount of 15.9 million euro, while the Federation and its road company Autoceste will contribute 9.1 million euro of their own funds.
($=0.814370 euro)