The European Union (EU) is stepping up its support for Corridor Vc, the key transport infrastructure project in Bosnia and Herzegovina, with additional grant funding of €14.6 million.
The funds will be used to finance the supervision of works contracts on five motorway sections that are financed with loans provided by the European Bank for Reconstruction and Development (EBRD) and the grant funding will reimburse the supervision costs incurred by two motorway companies to date.
Corridor Vc is a pan-European transport project reconnecting the continent. The section in Bosnia and Herzegovina is 325 kilometres long and will cross the country from north to south, eventually connecting the Adriatic port of Ploče in Croatia with the Hungarian capital, Budapest.
The motorway, which will bring Bosnia and Herzegovina closer to the EU, is co-financed by loans from the EBRD and European Investment Bank (EIB) and grant resources form the EU. To date, the EBRD has provided loans worth €850 million from its own resources, while the investments and technical assistance grants extended by the EU have totalled over €220 million.
The signing of the grant agreements today was attended by representatives of the EBRD, the EU and the public motorway companies of the Federation of Bosnia and Herzegovina and the Republika Srpska.
Manuela Naessl, EBRD Head of Bosnia and Herzegovina, said: “Corridor Vc is the key infrastructure project the EBRD supports in the country. In addition to our loans, we also provide support by mobilising grant funding from the EU and commercial creditors and by supporting institutional capacity building.”