CORRIDOR VC MEDAKOVO - POPRIKUSE

Promoter – Financial Intermediary

JAVNO PREDUZECE AUTOCESTE FBIH DOO

Location

• Bosnia and Herzegovina

Description

The project will finance the construction of a new motorway section of 35 km on Corridor Vc in northern Bosnia and Herzegovina (BiH). This 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 Trans-European Network (TEN-T) to neighbouring countries. It is also part of the South-East Europe Transport Observatory's (SEETO) Comprehensive Network. The section is included in the Single Project Pipeline as priority projects on the Core TEN-T network extension to BiH.

Objectives

The project, which is a priority for the Government of BiH's Transport Strategy 2016-2030, expects 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 facilitate convergence toward EU standards in terms of core economic infrastructure of BiH and increase road capacity and safety on this North-South corridor. The project will 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.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 419 million

Total cost (Approximate amount)

EUR 696 million

Environmental aspects

If located within the EU, the project would fall under Annex I of the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU and therefore be subject to an Environmental Impact Assessment (EIA) procedure. As a potential candidate country to the EU, BiH has adopted the relevant EU Directives, 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. The environmental permit for the lot 2 Doboj South-Sarajevo South, including the road section Medakovo-Poprikuse was renewed in September 2019. Environmental & Social aspects, management measures and procedures as well as alignments of the project with EIB Environmental and Social standards and provisions of the relevant EU Directives are to be 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.

Status

Signed - 28/12/2020