FBiH Government: Acceptable financing structure for highway section

(Patria) - The Government of the Federation of BiH, at today's session held via video link to adhere to hygienic-epidemiological measures, adopted information on the status of the Mandate Letter from the European Bank for Reconstruction and Development (EBRD) dated 12.3.2020 and on the draft text of the EBRD Mandate Letter dated 16.10.2020 for financing the construction of the Mostar sjever - Mostar jug section of Corridor Vc.

As announced, the Government confirmed the acceptability of the innovated financing structure for the construction of this section and tasked the Federal Ministry of Transport and Communications, the Federal Ministry of Finance, and JP Autoceste Federacije BiH d.o.o. Sarajevo to carry out all necessary activities related to the next steps required for the preparation of the final text of the Mandate Letter, which will then be submitted to it for approval.

The Government today tasked Autoceste FBiH to proceed with the preparation of the main project for the Mostar sjever - Mostar jug highway section so that it is completed by the end of 2021, or at the latest by the effectiveness of the loan for financing this section.

Autoceste FBiH and the Federal Ministry of Transport and Communications are tasked to, in cooperation with the EBRD, prepare a Draft Procurement Plan for the Mostar sjever - Mostar jug section, with a precise timeline of the key phases of this process, and to submit it, along with the final text of the Mandate Letter, to the Government of FBiH for approval.

As explained, the draft of the new Mandate Letter significantly reduces the financing costs for this section and includes the Bank's technical assistance to Autoceste FBiH.

Also, a condition that precedes the finalization of the EBRD loan is the publication of a tender for financing procurement in accordance with our public procurement regulations, and the qualification criteria will include the obligation for banks to provide proof that they can sign a project implementation agreement with the EBRD, it was announced from the Office of the Government of FBiH for Public Relations.