European Investment Bank (EIB) has signed two loan agreements with a combined value of €150m for the construction of a pan-European motorway through Bosnia and Herzegovina.
The loan to the state of Bosnia and Herzegovina will be utilised to build the two sections of the Corridor VC pan-European road link, which will connect Budapest and Eastern Croatia to the Adriatic coast.
The loans are provided as a part of the EIB’s Economic Resilience Initiative, which aims to stabilise the economy of the nations affected with conflict and migration.
“Today’s loans show what the Economic Resilience Initiative stands for: helping countries overcome the consequences of the migration crisis and build a better future for their citizens.”
Extending the EU-wide TEN-T network to neighbouring countries, the Corridor VC motorway is expected to facilitate trade, boost regional and national economic growth and develop tourism.
From the total loan amount, €100m will be used to finance the section of Corridor VC to the south of Mostar.
It includes construction of a new 21km-long tolled motorway with a 2.6km-long twin tunnel and other associated structures between Mostar South and Pocitelj in the south of Bosnia and Herzegovina.
The remaining €50m will be used to build a new 2.8km-long tolled motorway between Ponirak and Vraca, 2.4km of which will be a long twin tunnel.