A €11.8m grant agreement to finance the construction of the 6.9 km-long Tarčin-Ivan section of the pan-European Corridor Vc was signed on Thursday 30 July, between the European Investment Bank (EIB) and the Ministry of Finance and Treasury of Bosnia and Herzegovina.

This Connectivity Agenda 2018 project includes two bridges and a 1,720m long double-tube Tunnel Ivan, where the drilling works started in March 2020. The 6.9 km-long section will improve connection and decrease travel time between Sarajevo and Mostar, as well as offer better and safer access to larger urban hubs for the citizens living in the surrounding areas, advance routes to tourist areas in the region and contribute to improvement of trade flows with countries in the region and thus have a broader positive impact on the economy of Bosnia and Herzegovina. It is estimated that more than 400 jobs will be created during construction as well as operation and maintenance periods.

The total investment cost of the project is estimated at €143m, financed by €23.3m in EU grants provided through the Western Balkans Investment Framework and €100m in loans from the EIB and the European Bank for Reconstruction and Development (EBRD), complementing €19.7m provided by Bosnia and Herzegovina.

Once built, the new section will be operated and maintained by the Public Company ‘Motorways of the Federation of Bosnia and Herzegovina’ through a toll collection system. A health and safety system will be put in place as well, according to best European practices. The feasibility study, detailed design, urban and environmental permits for the entire section have already been secured.

This grant agreement marks another important step forward for EU assistance to the Bosnia and Herzegovina in the construction of the Corridor Vc, the country’s most ambitious investment programme in to improve regional connectivity. In addition, CVc will contribute towards faster social and economic integration of the Western Balkans and the European Union.

Mr Johann Sattler, EU Ambassador to Bosnia and Herzegovina: ’The EU has allocated more than €200 million of grants under the Connectivity Agenda to help Bosnia and Herzegovina accelerate the construction of the Corridor Vc in the country. The construction works did not stop even during the coronavirus pandemic. The protective measures put in place in all active construction sites are a very positive sign as they mean retaining jobs in these difficult times. Large public investment programmes most importantly generate new jobs and acceleration of construction is more necessary than ever to mitigate the adverse impact of the pandemic.’

Mr Matteo Rivellini, Head of EIB Lending Operations in Croatia, Slovenia and Western Balkans: ’The EIB remains committed to the long-term, sustainable development of Bosnia and Herzegovina and we are proud of our role as one of the major investors in country’s road infrastructure. As motorways are drivers of economic and social development, this section will speed up integration of Bosnia and Herzegovina with the EU and help create new business opportunities throughout the region and with them jobs and income for the people. In times of economic uncertainty due to the COVID-19 pandemic, strategic investments like this are clear signals that the EU bank remains a reliable partner for the Western Balkans.’

Mr Vjekoslav Bevanda, Minister of Finance and Treasury of BiH: ’This project will bring Sarajevo and Mostar closer and shorten the travelling distance by connecting the M17 Road with Corridor Vc. In addition to faster and more comfortable travelling, this modern section will also give rise to new economic opportunities and improve environmental protection.’

About Corridor Vc

More than 325 km of Corridor Vc runs through Bosnia and Herzegovina, connecting the port of Ploče in Croatia with Budapest. Thus far, 155 km have been completed or are currently being built. Recognising the need to support the country in this significant and expensive project, the European Union will facilitate construction of 11 mature projects on Corridor Vc. Under the Connectivity Agenda, the EU is also supporting construction of the Gradiška bridge on Route 2a and the rehabilitation of the Brčko Port.

WBIF Factsheet on the Corridor Vc Construction Works during the pandemic here (ENG version) and here (BiH version).

Latest video footage from the Corridor Vc here and here (Svilaj – Odžak section).

Photo gallery of the WBIF project ’Mediterranean Corridor: Construction of Road Corridor Vc in Bosnia and Herzegovina’ here.

More about the Connectivity Agenda Projects here.