BAKU, Azerbaijan, September 16. The European Bank for Reconstruction and Development (EBRD) has approved a sovereign loan of up to 48 million euros to Bosnia and Herzegovina, Trend reports citing the EBRD's latest reports.
This funding will support the rehabilitation and construction of vital road sections connecting Brod na Dirini in the Municipality of Foca to the border with Montenegro, enhancing regional connectivity and economic growth.
The project aims to enhance BiH's regional integration within the Western Balkans and with EU markets by upgrading vital transport infrastructure. It includes the rehabilitation of approximately 5.5 km of existing roads, the construction of a new 13.3 km road section, and the building of a 380-meter border crossing bridge over the Tara River to Montenegro. Co-financed by the World Bank and the EU, the total project cost amounts to 98 million euros.
Designed to improve road safety standards and climate resilience, the project also incorporates a comprehensive Performance Improvement Programme to boost the operational efficiency of Public Company Putevi Republike Srpske (Putevi RS), the entity responsible for road maintenance in the Republika Srpska.
The EBRD’s support offers additionality through long-term financing not readily available from commercial banks and aims to strengthen corporate governance standards within Putevi RS. Environmental and social considerations have been carefully addressed, with the project categorized as B under the EBRD's Environmental and Social Policy, involving site-specific impact mitigation measures related to land acquisition, biodiversity, and community safety.
The project will also support capacity building through a Technical Cooperation component focused on performance improvement, funded by the EBRD’s Shareholder Special Fund with an estimated 250,000 euros. Monitoring and compliance will be overseen through regular reports and site visits, ensuring adherence to environmental, social, and safety standards.
This initiative marks a significant step forward in Bosnia and Herzegovina’s infrastructure development, fostering regional connectivity, safety, and sustainability in line with the country’s broader economic and environmental goals.