The European Bank for Reconstruction and Development (EBRD) has provided a €21 million loan to complete the construction of a motorway between the second-largest city in Bosnia-Herzegovina and the pan-European transport network.
The Banja Luka-Gradiska motorway in Bosnia-Herzegovina, the first in the country's central Republika Srpska region, links the capital city of Banja Luka with Corridor X, the pan-European transport network. It has been built with financing from the EBRD and European Investment Bank.
The EBRD loan will go to Republika Srpska Motorways, a newly-established public company responsible for managing the motorway network. Proceeds will be used to finance the construction of the Mahovljani Interchange, which completes the Banja Luka-Gradiska road’s missing link.
The project will comprise a new 1.8km two-lane motorway, four two-lane slip roads with a total length of 6.9km, two viaducts – which carry two of the slip roads over the new motorway – and four bridges.
In addition to the EBRD’s €21 million, the European Commission is providing grant funds of €5 million through its pre-accession programme and €500,000 through its Central European Initiative and Western Balkans Investment Framework.
“The project will promote further reform in the infrastructure sector, helping to attract private investors,” Sue Barrett, director for transport at the EBRD, said in a statement. “Upon its completion, the new motorway will considerably reduce the current level of heavy traffic on existing routes.”
To date, the EBRD says it has invested more than €328 million in the road sector in Bosnia-Herzegovina, with total commitments in the country exceeding €1 billion.