CORRIDOR VC MOSTAR SOUTH

Construction of about 20.9 km motorway between Pocitelj and Mostar in the Southern part of Bosnia and Herzegovina.

The project is part of the trans-European Corridor Vc, which connects the Croatian coast to Budapest through Bosnia and Herzegovina and forms part of the South-Eastern axis of the extension of the TEN-T network to neighboring countries. Corridor Vc is the main north-south corridor running through Bosnia and Herzegovina. The project is expected to facilitate trade, develop tourism, promote regional and national economic growth and ultimately contribute to economic and social cohesion in the region. The project is therefore eligible under Art 309 (c).

If located in the EU, the project, consisting of the construction of a new Greenfield motorway, would fall under Annex I of the EIA Directive 2011/92/EU and therefore require a full Environmental Impact Assessment (EIA) including public consultations. In the Federation of Bosnia and Herzegovina it falls under the EIA procedure as stipulated by the Law on Environmental Protection and pertaining regulation of Bosnia and Herzegovina. The promoter has already provided an EIA study for the project carried out in accordance to the above-mentioned legal framework. Its content and compliance with the principles of the relevant EU directives on SEA, EIA and Nature conservation will be reviewed during appraisal.

The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's guide to procurement and the relevant applicable EU public procurement rules.

This operation is covered by the ELM Guarantee.