SARAJEVO (Bosnia and Herzegovina), July 21 (SeeNews) – The EBRD said on Friday it is mulling providing a sovereign-guaranteed loan of up to 205 million euro ($239 million) to Bosnia's state-owned motorway company Autoceste FBiH to build four sections of Corridor Vc.
The combined length of the four sections will be approximately 20.5 km.
The loan is composed of two tranches. The availability of the second tranche hinges on compliance with the lender's environmental and social performance requirements, and the achievement of implementation and transition milestones, the EBRD said in a statement.
The first tranche of up to 145 million euro will finance the construction of: Tunnel Ivan approximately 2 km in length (50 million euro); Tunnel Zenica approximately 2.8 km in length (25 million euro); a motorway section from Poprikusa to Nemila approximately 6.9 km in length (70 million euro).
The construction of Tunnel Zenica and the Poprikusa-Nemila section will be co-financed by the European Investment bank (EIB).
The second tranche amounts of up to 60 million euro and will be used to finance the construction of a motorway section from the Mostar South Interchange to Tunnel Kvanj, approximately 8.7 km in length.
The project is a follow on operation to the EBRD’s previous projects for the construction of key motorway sections of Corridor Vc in Bosnia, which connects Port of Ploce in Croatia with Budapest in Hungary and is part of the Western Balkans Core Network.
The EBRD will consider the loan at a board meeting on November 29.
($=0.857740 euro)