Europe Wants Priority Highway Through BiH

The focus of the EBRD investment summit in London was on the development of road corridors, primarily Corridor 5C through Bosnia and Herzegovina. Investment in power projects was also discussed. This summit is expected to promote the Western Balkans as an investment destination and mark the region's progress, writes Patria.        

EBRD has already offered Serbia financing for the development of small and medium-sized enterprises and primary funds of 15.5 million euros for consultants. One of the main priorities of the meeting, however, was investment in Bosnia and Herzegovina. Corridor 5C leads towards the European East, through Hungary to the Baltics. 
   
Upon returning from London from the Investment Summit for Western Balkan countries, Prime Minister Denis Zvizdić did not release any approximate data on the loan conditions to the public. Only the final sum was mentioned. It is about 300 million euros for the construction of a section of the corridor towards Mostar.   

- Following an official initiative from the entities, which is expected next week, the Council of Ministers of BiH will form a negotiation team to negotiate the terms. However, an agreement on standard loan conditions was signed with the EBRD earlier - they say for Patria from the office of the state prime minister.    

Standard loan conditions include a 15-year repayment period, with a 4-year grace period. The interest rate is Euribor plus 1 percent and a 1 percent one-time fee. There are no insurance costs; a sovereign state guarantee is provided, which does not incur costs. 

The conditions are not as favorable as in the case of previous loans from the IMF. 

It will be absolutely necessary to employ domestic construction capacities, which will keep all the money within Bosnia and Herzegovina. Four years are sufficient for the construction of a significant section to Mostar, after which loan funds could be partially repaid through toll collection.
        
Further steps will await the initiative from the entities to operationalize the loan. The fact is that Corridor 5C is an important European road project, and there should be no blackmail or delays from Republika Srpska regarding it.