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EBRD assists its newest member, Bosnia and Herzegovina, in reconstruction of the transport system
As part of an international emergency programme to reconstruct and repair urgent and high-priority airport infrastructure and road links in Bosnia and Herzegovina, the European Bank for Reconstruction and Development (EBRD) is providing a US$ 32.7 million (ECU 26 million) loan that will benefit both the Federation of Bosnia and Herzegovina and Republika Srpska (Serb Republic). Additional funding is being provided by the World Bank, the European Union and several donor agencies.
The project documentation was signed by the EBRD's President, Jacques de Larosière; Kresimir Zubak, as a member of the three-person presidency of the state of Bosnia and Herzegovina, and in his capacity as current President of the Federation of Bosnia and Herzegovina; and Biljana Plavsic, President of Republika Srpska. The ceremony was also attended by Carl Bildt, the High Representative for Bosnia and Herzegovina, and by Zlatko Hurtic, Assistant Minister in the Bosnia and Herzegovina Government. Mr Bildt said: "This first project financed by the EBRD is important for the reconstruction of Bosnia and Herzegovina, and its signing by senior representatives of all interested parties is a most encouraging sign and clear evidence that the country will benefit considerably from the project. It also constitutes in the economic field an important complement to the Peace Implementation Conference which has just ended."
"The restoration of Bosnia and Herzegovina's transport system is one of the principal catalysts for economic recovery in the region," said Jacques de Larosière. "The EBRD has played a lead role in preparing this operation, particularly the coordination of donor funding efforts for the Sarajevo airport component. As the EBRD's first operation in this region, it will include project components for both the Federation of Bosnia and Herzegovina and Republika Srpska, which is important for gaining commitment to the operation as a whole."
The total cost of the aviation component programme is about US$ 27 million (ECU 21 million), of which the EBRD will finance US$ 13 million. Donor funding will provide the remaining US$ 14 million.
The project involves the reconstruction of Sarajevo airport and facilities for en-route air navigation as well as repairs to Banja Luka and Mostar airports.
Having been largely destroyed during the conflict, Sarajevo airport needs extensive reconstruction to enable it to re-open to regular commercial traffic under all-weather conditions. The project comprises replacement of essential navigation aids, repairs to the runway, refurbishment of the main airport buildings, including the control tower, and provision of aircraft and passenger-handling equipment for the airport's commercial operation.
Jointly prepared with the World Bank, the roads and bridges component programme includes repair work for 20-30 bridges and about 600 km of main and regional roads in both the Federation of Bosnia and Herzegovina and Republika Srpska. Implementation is expected to be completed by mid-1998. The EBRD is contributing about US$ 20 million to this programme, which will finance approximately one-third of the costs. Measures will be included in the construction contracts to ensure that construction work is undertaken in an environmentally sound manner.
A secondary objective of the project is to provide a framework for future financing and development of the transport system throughout the region. Technical cooperation will comprise technical assistance for institution building, such as a road user charges study, and consultancy services for project implementation.
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