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EBRD assists Bosnia and Herzegovina in reconstruction of its telecommunications system
As part of a programme to rebuild the telecommunications network in Bosnia and Herzegovina, the European Bank for Reconstruction and Development (EBRD) is providing a DM 35.4 million (ECU 18 million) loan that will benefit both the Federation of Bosnia and Herzegovina and Republika Srpska (the Entities). The loan will finance the restoration and expansion of the local telecommunications networks, which suffered extensive damage during the war.
"The restoration of Bosnia and Herzegovina's telecommunications system is one of the principal catalysts for economic recovery in the region," said Peter Reiniger, Director of the EBRD's telecommunications team. "The EBRD was asked by the international community to mobilise and coordinate international assistance for the reconstruction of the country's telecommunications sector, and we are pleased to announce a project that will result in modern local networks for some 88,000 subscribers. We expect this project to contribute greatly to reconstructing the telecommunications system."
President Krajisnik, the authorised signatory of the three-person Presidency of Bosnia and Herzegovina, said: "This project represents a significant step towards the overall reconstruction and rehabilitation of broken communications links. We would like to express our sincere thanks to the EBRD, which helped us achieve this. The equal treatment of the Entities under this project will advance better relations and understanding in Bosnia and Herzegovina. I would like to thank all those who have contributed to the conclusion of this important agreement."
In addition to financing an expansion of the network, the project will provide essential equipment and materials for the restoration of local/long distance networks in Bosnia and Herzegovina. The proceeds of the loan will be used for the purchase of imported cables and materials and will also finance a portion of the local costs.
In addition, up to DM 37.7 million (ECU 19.2 million) of grant funding is being contributed by the governments of Switzerland, Japan, Italy and the Netherlands to finance complementary equipment and materials. Furthermore, an 18-month technical assistance programme totalling DM 2.25 million (ECU 1.15 million) is being provided to assist with the implementation of the project and to create a legal and regulatory framework which will support the integration and operation of the telecommunications sector in Bosnia and Herzegovina.
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