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EBRD ready to continue financing construction of VC corridor through Bosnia

ZAGREB, April 8 (Hina) - The European Bank for Reconstruction and Development (EBRD) is ready to continue financing the construction of the motorway along the Vc transport corridor that runs through Bosnia and Herzegovina because it considers that it is the most important infrastructure project not just for that country but for the entire region, EBRD Director for the Western Balkans Holger Muent told the press in Sarajevo on Friday.

We share the intentions of the authorities in Bosnia and Herzegovina who wish to speed up the construction of Corridor Vc. It is one of the key projects in connecting the region, Muent said. He said that models were now being discussed with the Bosnian authorities to resume the previous financing with a view to increasing the loan.

Muent said that over the next three years the EBRD would ensure loan funds in the amount of between EUR 80 million and EUR 100 million annually for the construction of Corridor Vc.

Corridor Vc runs from Budapest via eastern Croatia and Bosnia and Herzegovina to the southern Croatian port city of Ploce. The Bosnian section of the corridor is about 330 kilometres long and slightly over 120 kilometres of motorway have been built to date.

Foreign Trade Minister Mirko Sarovic said that additional excise taxes would be imposed, including those on fuel, which would serve as the basis for new borrowing.

Sarovic and Muent attended a meeting of an EBRD group of countries, comprising Austria, Bosnia and Herzegovina, Cyprus, Israel, Kazakhstan and Malta, on possibilities of a direct foreign investment. The meeting was held as part of preparations for the EBRD summit in London in May and focused on projects that would be presented there for financing approval.

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