BAKU, Azerbaijan, Feb.12. The World Bank’s Board of Executive Directors has approved a 70 million euro ($80.97 million) loan to Bosnia and Herzegovina to improve transport connectivity and modernize road infrastructure, the bank said, Trend reports.
The project will be supported by an additional 8.5 million euro ($9.99 million) grant from the European Union’s Western Balkans Investment Framework (WBIF), highlighting cooperation among international partners.
The Federation Road Asset Management Enhancement Project will address key gaps in the road network of the Federation of Bosnia and Herzegovina (FBiH), one of the country’s two entities. The program will rehabilitate or upgrade about 150 kilometers (93 miles) of priority national roads to higher safety and resilience standards.
The project also aims to improve road safety, including upgrades to the Mostar North junction, described as one of the country’s most hazardous traffic locations. It will finance traffic calming measures, improved signage and safer pedestrian crossings in around 20 school zones, as well as support the development of a Road Safety Database.
In addition to infrastructure works, the initiative will strengthen planning and management of the road network to improve maintenance and the efficient use of public funds. It includes a Contingent Emergency Response Component that would allow funds to be reallocated quickly to the road sector in the event of an eligible emergency.
The World Bank said upgrading priority roads, many of them key commuter routes, is expected to enhance mobility and expand economic opportunities across the Federation. Rural areas, where poverty rates are higher and agriculture plays a significant role, are seen as among the main beneficiaries through improved access to jobs, services and trade.