EBRD loan: 58 million euros for the Road Sector Modernization Project in FBiH

The Board of Executive Directors of the World Bank today approved an EBRD loan of 58 million euros (equivalent to 64.6 million US dollars) for the Road Sector Modernization Project in the Federation of BiH, the World Bank office in BiH announced, reports the Patria News Agency.

This project, which will be co-financed by the European Investment Bank and the World Bank, is the World Bank's first operation in the transport sector in BiH since 2007, reflecting a renewed focus on connectivity and strengthening key economic infrastructure as the country progresses towards EU accession.  

-The recent Systematic Country Diagnostic identified investments in transport infrastructure as crucial for Bosnia and Herzegovina's growth and inclusion, said Tatiana Proskuryakova, World Bank Country Manager for Bosnia and Herzegovina.

-A quality, safe, and efficient road network would provide greater market access for the country's exporters, and encourage greater labor mobility and easier access to goods, services, employment, and business opportunities, she added. 

The project aims to improve road connectivity and safety for road users on selected roads, and to strengthen capacities for sustainable management of the main road network in the Federation of Bosnia and Herzegovina (FBiH). 178 km of main roads will be rehabilitated, including three tunnels and nine bridges. Additionally, the construction of the new M17.3 route (Neum-Stolac road) is expected to stimulate growth in the southern parts of BiH through improved access to the Adriatic coast, thereby strengthening tourism development and creating jobs.

In addition to infrastructure works, the project will support the Public Enterprise Roads of FBiH in its efforts to improve the financial sustainability of these and future investments, and to effectively consider climate change resilience and road safety in the design and construction of roads, ensuring a better understanding of the potential vulnerabilities of the road network to extreme weather and climate change.

-This will enable the Public Enterprise Roads of FBiH to identify and regularly implement measures that could save more lives on the roads and ensure road functionality even during extreme weather conditions. As our partner, the Public Enterprise Roads of FBiH, is committed to building infrastructure that will be able to withstand the consequences of climate change, such as floods that can be stronger and more frequent, this was also particularly emphasized during the project design, said Liljana Šekerinska, World Bank Senior Transport Specialist and Task Team Leader.

This project is the first phase of the BiH Transport Sector Modernization Program and will be implemented in the Federation of Bosnia and Herzegovina. This Program, organized as a series of projects, will support the long-term development of transport in BiH in a flexible manner, allowing for the development of subsequent phases in other parts of the country as technical and financial opportunities arise, the statement said.