Kuwaiti loan of 50 million euros and EBRD loan of 60 million euros for highway construction

The FBiH Government today reviewed information on the loan request of JP Autoceste Federacije BiH d.o.o. Mostar for Corridor Vc, and supported the initiative to secure funds through a loan from the Kuwait Fund for Arab Economic Development (KFAED) for the implementation of the project on the sub-section Klopče - Donja Gračanica in the amount of up to 50 million euros, reports the Patria news agency.

The condition is that the effectiveness of the loan will be tied to the introduction of an additional excise tax on petroleum derivatives of 0.10 KM/liter in order to ensure the long-term sustainability of the debt of JP Autoceste Federacije BiH and mitigate risks to the budget of the Federation of BiH.

The Government today assessed that the information on this loan is a good basis for conducting negotiations, and tasked the Federal Ministry of Finance, the Federal Ministry of Transport and Communications, and Autoceste Federacije BiH to appoint their authorized representatives for these negotiations. The final decision on the borrowing will be made upon the conclusion of the negotiations, and the ultimate debtor under this loan will be Autoceste FBiH.

The Federal Ministry of Finance will submit to the Government information on the negotiations and the text of the agreed Agreement between Bosnia and Herzegovina and KFAED. This Ministry will submit today's conclusions to the Ministry of Finance and Treasury of BiH for further procedure regarding the loan.

The Government also supported the initiative to secure loan funds from the European Bank for Reconstruction and Development (EBRD) for the Corridor Vc Project - on the sub-section Buna - Počitelj and the sub-section Donja Gračanica - Tunel Pečulj (Zenica North) in the amount of up to 60 million euros, also under the condition that the effectiveness of the loan will be tied to the introduction of an additional excise tax on petroleum derivatives.