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Infrastructure

In the period 2004-2005 Bosnia and Herzegovina benefited from investments by leading international financial institutions, aimed at the reconstruction and modernisation of the much neglected road, rail, and energy infrastructure of the country. The ongoing transport infrastructure projects seek the rehabilitation of important sections of Bosnia and Herzegovina's road and railway system, thus facilitating the finalisation of the Pan-European Corridor Vc and Corridor X projects. Leading agencies in the provision of the necessary financial resources for the purpose were the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the World Bank (WB).

The Main roads and bridges rehabilitation project envisages the construction of a new Sarajevo bypass on the Corridor Vc, the renewal of the Capljina Bridge over the Neretva river, linking the town to the E 73 road, and the rehabilitation of 18 road sections on the territory of Republika Srpska (RS), construction of 2 city bypasses at Banja Luka and Bijeljina, and the reconstruction of the Ponor Bridge on the E 746. The total cost of the project is valued at EUR 120 mln., with the EIB providing EUR 60 mln. in the form of a concessional loan. The rest of the resources are contributed by the EBRD (EUR 40 mln.), and the local budget (EUR 20 mln.). The expected completion is in 2006.

The Road Management and Safety Project consists of two components, the first one being road maintenance, rehabilitation, and safety improvements for the main and regional road network. The second component envisages the institutional strengthening of the two road directorates-the Federation Bosnia and Herzegovina Road Directorates and the Republika Srpska Road Directorate. The project totals up USD 41.53 mln., with the WB making the greater financial contribution to its implementation. The project was initiated in October 2003, with its completion expected in June 2007.

The Railways Recovery Project aims at renewing the railway section of the Pan-European Corridor Vc from the Croatian border through Sarajevo to the Adriatic Port of Ploce. It is estimated at EUR 81 mln. to be provided by the EIB (EUR 40 mln.), the EBRD (EUR 21 mln.), the European Commission (EUR 17 mln.) and through bilateral grants (EUR 3 mln.). The project's implementation started in the second half of 2003, and with works expected to continue till 2006.

The Bosnia and Herzegovina Regional Railway Project comprises a programme of track renewal on key sections of the north-south Corridor Vc (Konjic-Mostar, Mostar-Capljina and Sarajevo-Bradina) and the east-west section (Josavka-Doboj), which runs parallel to Corridor X. The total cost of the project runs up to EUR 210 mln., jointly financed by the EIB/EBRD with EUR 96 mln./EUR 70 mln. respectively. Additional financing is provided by the government of Bosnia and Herzegovina (EUR 28 mln.) and the EU (EUR 4 mln.). The project was initiated in 2005, with works expected to be completed by the end of 2008.

The 3rd Electric Power Transmission Project, focused on the restoration of the 400 kV and other high voltage transmission systems in Bosnia and Herzegovina, is financed by the EIB/EBRD, with additional financing provided by the EU, Switzerland, Spain, Norway, KfW Förderbank, and the UK Department for International Development.

The Project for the construction of a 29 km long motorway between Banja Luka and Corridor X, including a bridge over the Sava, is financed by the EIB with EUR 65 mln. The EIB 25-year loan will complement budgetary funds, EBRD financing (EUR 30 mln.), and a grant from the Italian Trust Fund for Transport. The project's completion is envisaged for 2010 at a total cost of EUR 130 mln.