March 25 (SeeNews) - The European Investment Bank (EIB) said it is providing a 40 million euro ($47 million) loan to Bosnia to finance a project for the reconstruction of the urban transport network in the capital Sarajevo.
The project envisages modernisation and extension of the tram and trolley bus networks, through the replacement of existing vehicles and the construction of new tramlines and tracks, EIB said in a statement on Tuesday.
The establishment of a more efficient and reliable public transit system is expected to enable a shift of passengers from private to public transport modes. As a result, it will help to reduce commute times, greenhouse gas emissions, noise levels and the number of traffic accidents in the Canton of Sarajevo.
"The project will contribute to the fulfilment of the EU Strategy for the Western Balkans and the EIB’s climate action goals for the region relating to sustainable transport," the bank said.
In January, when Bosnia's government approved the draft agreement to borrow the money, it said that the term of the loan is 25 years, including a five-year grace period.
The EIB has provided 1.6 billion euro so far to assist the construction of better roads in Bosnia.
($ = 0.847071 euro)