EBRD PROVIDES EUR 180 MILLION LOAN FOR CONSTRUCTION OF CORRIDOR 5C HIGHWAY

SARAJEVO, Bosnia (September 16, 2008) - Bosnia will not be able to continue building the corridor 5c highway before new fuel tax is introduced for every litre of fuel sold in the country, the FBIH Entity Transport Minister Nail Seckanovic said today.

He was a member of the Bosnian delegation that just returned from London,UK, where they were negotiating a loan with the European Bank for Reconstruction and Development (EBRD). Negotiations ended successfully, with an agreement that the EBRD would fund the building of the corridor 5c highway with 180 million Euros.

However, the loan comes with a condition – the fuel tax. The EBRD officials were quite firm on this, Seckanovic said.

The EBRD and the European Investment Bank (EIB) will fund the building of 65km of the highway. Bosnia will be given a loan in the amount of 480 million Euros, and 180 million Euros of that will be provided by the EBRD.

Representatives of the Bosnian Ministry of Communication and Transport led by Minister Bozo Ljubic successfully completed negotiations with European bank for Reconstruction and development in London regarding the loan in the amount of 180 million Euros.

The EBRD and the European Investment Bank will fund the building of 65km of the highway. Bosnia will be given a loan in the amount of 480 million Euros, and 180 million Euros of that will be provided by the EBRD.

Loan will be used to finalize construction the section of corridor 5-C highway, more precisely: Svilaj - Odzak, Drivusa - Kakanj, Vlakovo - Tarcin and Pocitelj - southern border with Croatia.

Loan will become operative in 2009 when the first construction will start. The rest begins in 2010 and completion is planned for 2012.

Official signing of the agreement with EBRD shall be in the Bosnian capital Sarajevo on November 5, stated the Bosnian Ministry of Communication and Transport.
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