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EBRD steps up support for Sarajevo road development

Axel Reiserer by Axel Reiserer
July 13, 2016
in Business
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EBRD steps up support for Sarajevo road development
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The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is stepping up its support for a road rehabilitation programme in the Sarajevo Canton from €16.5 million to a total of €22.5 million.

The extra €6 million in funding will enable the completion of the challenging works on the southern longitudinal road which will improve the traffic flow in and out of the Bosnian capital for private road users as well as for businesses, according to EBRD.

Better transport connections will strengthen the local economy and support its regional integration in line with the EBRD’s current strategic priorities. The improvement of the road network will also alleviate the burden of road traffic on the environment.

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The loan increase has become necessary due the challenging nature of the works. 

Phil Bennett, EBRD First Vice President, said: “Roads are the arteries of any modern economy. Improvements to the network are important for citizens and for our clients and make transport safer and more comfortable. The EBRD loan supports the finalisation of important construction works, but also enables the introduction of performance-based maintenance contracts as a pilot project to support greater commercialisation.”

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Vjekoslav Bevanda, Minister of Finance and Treasury of Bosnia and Herzegovina, said: “This project has already improved traffic flow in Sarajevo. These additional funds should help to further improve the overall economic and environmental benefits of the project.”

Since the beginning of its operations in Bosnia and Herzegovina the EBRD has invested more than €1.8 billion in over 130 projects in the country. Strengthening regional integration is one of the three key priorities of the EBRD under the Bank’s current business strategy that aims to re-energise growth in its countries of operations, promote regional integration and address global and regional challenges.

 

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