CORRIDOR VC CENTRE

Promoter – Financial Intermediary

JAVNO PREDUZECE AUTOCESTE FBIH DOO

Location

• Bosnia and Herzegovina

Description

The project concerns the construction on a new alignment of two non-contiguous sections of Corridor VC, totaling about 12 km in aggregate, between Poprikuse-Nemila and Tacin-Ivan in central BiH.

Objectives

The project is part of Corridor Vc connecting the Croatian coast to Budapest through BiH and forms part of the South-Eastern axis of the extension of the TEN-T network to neighboring countries. The project is part of the South-East Europe Transport Observatory's (SEETO) Comprehensive Network. Both sections of the project are included in the Single Project Pipeline as priority projects on the Core TEN-T network extension to BiH. The project is prioritised within the Government of BiH's Transport Strategy 2016-2030. 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.

Comments

The Corridor Vc motorway connection is essential for fostering economic growth in the country. The project will substantially shorten travel distances along the central part of the corridor and is thus expected to generate substantial benefits in terms of time savings, reduced accident rates, savings in vehicle operating costs and reduction of local pollution in the towns in the area. The project will also increase accessibility and promote regional as well as local economic development. The Promoter is the Motorways Public Company of the Federation of BiH (JP Autoceste) which is responsible for the construction, operation and maintenance of motorways in the Federation. It is well known to the Bank as the promoter of a number of completed and ongoing EIB financed operations in the sector.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 152 million

Total cost (Approximate amount)

EUR 294 million

Environmental aspects

If located within the EU, the project would fall under Annex I of the Environmental Impact Assessment (EIA) Directive 2014/52/EU and therefore be subject to an EIA procedure. As a potential candidate country to the EU, BiH has adopted the EU Directives relevant to the ESIA process, including the EIA Directive (2014/52/EU). The entire Corridor Vc has been subject to a regulatory EIA procedure in BiH (divided in four lots with the corresponding EIAs), including public consultation at scoping and assessment stages. Environmental procedures for the two project sections are covered by the EIAs of lots 2 (section Poprikuse – Nemila) and lot 3 (section Tarcin – Ivan). Environmental permit for the entire Lot 2 was first obtained in 2010 and renewed in 2014, whilst the permit for the Lot 3 was issued in 2012 and is in the process of being renewed. There are no protected areas that would be affected by the construction of the two motorway sections of the project. There is a cultural and historical heritage site in the vicinity of the project at a distance of some 200-300 m of the motorway alignment on the Tarcin – Ivan section. A Land Acquisition and Resettlement Framework, consistent with EIB policy, was developed by the Promoter and published in 2017 for the whole Corridor Vc in BiH. The procedures and outcomes for environmental and social assessment and management are to be further reviewed during appraisal.

Procurement

The EIB will require the Promoter to ensure that any procurement procedures are done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules. In particular, the Bank will require that calls for international tenders be published in the EU Official Journal, as necessary. The Bank may enter into a delegation agreement with the European Bank for Reconstruction and Development (EBRD) for all/part of the project within the context of the Procedural Framework for operations outside the EU, as foreseen in the Bank's Guide to Procurement.

Status

Signed - 27/02/2020