EBRD backs Bosnia’s highway to Europe - EXCLUSIVE

The European Bank for Reconstruction and Development (EBRD) has reaffirmed its strong support for the Mostar North–Mostar South motorway section, describing it as an integral part of Bosnia and Herzegovina’s most important infrastructure project - the Corridor Vc.

“Corridor is declared the most important infrastructure project for the whole country. Within such broader context, all Corridor Vc sections are equally important,” the source in EBRD told in an exclusive interview with CE Report, emphasizing the holistic value of the initiative. The corridor, which aims to better connect the country with the European transport network, has so far attracted approximately €3 billion in combined financing from the EBRD, the European Investment Bank (EIB), and the European Union.

Decisions on which sections of the corridor to prioritize are made by the Bosnian government and are “based mostly on readiness of the technical documentation,” the Bank added.

The Mostar section is being financed by a €110 million sovereign loan from the EBRD, along with a €10.7 million EU grant. The EBRD clarified that sovereign loans of this type follow standard terms, and disbursements are tied directly to certified work completed by contractors.

“Once the contracts are signed, invoices are paid for executed works or services directly to the contractors,” the Bank explained. Construction on the section is expected to begin in autumn 2025, following the conclusion of the procurement process. The project is also backed by a club of local commercial banks, whose loans have already become effective and will be disbursed first.

In terms of due diligence, the EBRD highlighted the extensive assessments that preceded the loan approval. A full Feasibility Study was carried out by an independent consultancy, and a separate Environmental and Social Impact Assessment (ESIA) was conducted and made available for public review.

“Study was published locally and on EBRD [website] for 120 days as part of compulsory public consultations for this type of projects,” the Bank noted, adding that the implementing agency, Motorways of the Federation of Bosnia and Herzegovina, also held public hearings during this process.

To ensure that the project is delivered in line with EBRD standards, a multi-layered monitoring system will be applied. This includes quarterly reporting by the borrower, daily supervision by an independent engineer, and EBRD oversight of procurement.

“The engineer approves all invoices, variations orders or claims... each step is subject to prior review and approval by EBRD specialist,” the Bank said. Additionally, a Lender’s Monitoring Assistant has been appointed to track progress and compliance on behalf of the EBRD.

Importantly, the Mostar North–South motorway section aligns with the EBRD’s climate action goals under the Green Economy Transition (GET) framework. The Bank confirmed that the project is Paris-aligned and includes climate adaptation and mitigation elements.

“In line with the GET Handbook and the j-MDB methodology, the project is attributed 18 per cent for GET adaptation,” the EBRD told.

As Bosnia and Herzegovina continues to advance along the Corridor Vc, projects like the Mostar section serve not only to enhance connectivity and economic integration with the EU, but also to promote environmentally responsible development across the Western Balkans.

Photo: Wikipedia

This interview was prepared by Abdul Karimkhanov