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EBRD loan to remove bottlenecks in Slovenia's highways
Slovenia will become better integrated regionally by a road improvement loan signed today in Ljubljana between the European Bank for Reconstruction and Development and the Republic of Slovenia. The National Road Administration will be the beneficiary of the US$ 30 million (ECU 26.1 million equivalent) loan to finance a highway project to remove major bottlenecks in the main east-west corridor.
Together with a US$ 32.1 million loan to the Company for Motorways in the Republic of Slovenia (DARS) which was signed on 13 May 1994, the project will facilitate both regional and international traffic and support the economic development and regional integration of Slovenia.
Guy de Selliers, Deputy Vice President of the EBRD, said: "The EBRD's presence in the highway sector is particularly important as private sector banks have so far been reluctant to lend for road development. This project will support the corporatisation of a newly established Slovenian motorway company and encourage more cost-effective road construction and maintenance activities."
The project consists of a balanced programme of road construction and improvement including: 1) motorway construction over 9.4 km between Pesnica and Sentilj (Maribor-Austrian border); 2) reconstruction and upgrading of two routes leading to the Hungarian border, and 3) road widening between Crnuce and Domzale near Ljubljana. The programme will be implemented over a three-year period from 1994 to 1996.
Environmentally, portions of the project which involve improvements of existing roads will upgrade conditions, including traffic safety. For the motorway construction, the equivalent of a full environmental assessment has been undertaken in conformity with the procedures of the Bank. The location decree issued by the Ministry of Environmental Protection and Regional Planning addresses the issue of land acquisition, compensation and noise mitigation. Location decrees, including proof of adequate public participation, will be required for all subprojects before tenders can be issued.
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