Loan Agreement between BiH and Saudi Fund for Infrastructure Development in Stari Grad Accepted

SARAJEVO, (Patria) - The Presidency of BiH has made a decision to accept the Loan Agreement between Bosnia and Herzegovina and the Saudi Fund for Development – Infrastructure Development in the municipality of Stari Grad.

This concerns credit funds that are to be invested in the implementation of four major projects in this municipality: construction of a sports hall at the Elementary School “Edhem Mulabdić“, construction of an underground garage in Avdaga Šahinagić Street, upgrading the Stari Grad Health Center building, and „thermal insulation“ of the Stari Grad Municipality building.

The amount of credit funds approved by the Saudi Fund for Development is 30 million Saudi riyals (about 13.4 million BAM). The agreement on the loan was reached in October last year, during a visit by the Mayor of Stari Grad Municipality Ibrahim Hadžibajrić to Saudi Arabia (Riyadh), when the Fund officially approved the projects and credit funds. The projects must be completed by 2021, and loan repayment will begin in five years and last for 20 years.

The entire procedure is taking place at higher levels of government, and one of the steps was the acceptance of the loan agreement and the designation of signatories by the Presidency of BiH. The next phase involves the official signing of the agreement, followed by its final ratification.

In parallel, the Stari Grad Municipality, following instructions from the Saudi Fund, has revised the project-technical documentation for all four capital projects, and the procedure for selecting individual consultants for the preparation, coordination, management, and implementation of capital projects of the Stari Grad Municipality Sarajevo follows. As previously announced, the selection of contractors will be carried out according to the procedures of the Saudi Fund.