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Project summary document

Project name:Corridor Vc
Country:Bosnia and Herzegovina
Project number:38716
Business sector:Transport
Public/Private:Public
Environmental category:A
Board date:15 October 2008
Status:Signed
Date PSD disclosed:
Date PSD updated:
16 May 2008
Local language translation:Local translation 
Date translation disclosed:2 June 2008
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Corridor Vc [Environmental Impact Assessment]
EBRD lends €180 million for main motorway in Bosnia-Herzegovina [Press Release]

Project description
and objectives:

The EBRD is considering a EUR180 million sovereign loan to Bosnia and Herzegovina for the construction of new priority motorway sections of the main north-south road through Bosnia and Herzegovina (BiH), known as Corridor Vc, namely:

  • Zenica to Kakanj section (length = 15.2 km);
  • Vlakovo to TarĨin section (length = 18.9 km);
  • Pocitelj to Southern Border with Croatia (length = 21.4 km).
  • Odzak to Norther Border with Croatia (length = 10.9 km).

Parallel financing is being considered by the European Investment Bank (‘EIB’).

The objective is to support the development of the motorway network in BiH and to provide support for the institutional strengthening of the Motorway Directorate in the Federation of Bosnia and Herzegovina including assistance to develop a public private partnership (PPP) scheme for remaining sections.

Transition impact:

The project will facilitate transition in the following ways:

  • Supporting transformation of FBHMD from a department within the ministry into a separate legal entity including development of a corporate plan and appropriate management information systems.

  • Assisting the authorities and the FBHMD with development of a strategy for public private partnership scheme towards construction of the remaining motorway sections in the Federation of Bosnia and Herzegovina.

  • Introduction of fuel levy for motorways development and physical tolls to foster financial independence of the sector.

 

The client:

The State of Bosnia and Herzegovina (BiH), the Government of the Federation of Bosnia and Herzegovina (“FBH”), one of the two Entities comprising the State, and the Federation of Bosnia and Herzegovina Motorway Directorate (FBHMD).

EBRD finance:

EUR 180 million. Sovereign Loan to Bosnia and Herzegovina, with on lending to the Federation of Bosnia and Herzegovina.
The project will be co-financed with the EIB.

Total project cost:

EUR 605 million.

Environmental impact:

The project was screened A/0.

The project is likely to be associated with significant environmental issues. EIA’s have prepared and are publicly available for all four LOTS and are compliant with the BiH Law on Environment (No: 33/03).

A gap analysis undertaken on EIAs and consultation carried out to date against EBRD's requirements identified the following issues:

Although the EIA has already been publicly disclosed EBRD will require that a number of additional documents are provided in the public domain so as to meet the Bank’s requirements for assessing, mitigating and/or compensating for environmental and social impacts of the project.

Public Consultation and Disclosure Plan (PCDP)
EBRD requires that public consultation activities, including EBRD’s specific public consultation and disclosure requirements for A-category projects, are defined within a plan. The purpose of the Public Consultation & Disclosure Plan (PCDP) is to define stakeholders who may be affected by the project and to elaborate on how communication will work with each affected group during the Bank's ESIA consultation period. This will need to include information on the EIA consultation that has already been held under the national EIA process, and there should be a section on the plan for future information disclosure and communication with stakeholders during the construction and operation phases of the project (including the public release of an environmental and safety report annually) as well as methods of dialogue handling of comments and concerns.

Land Acquisition and Involuntary Resettlement Plan
EBRD requires that people and businesses that are displaced (physically or economically) by a project receive benefits from it. The Project is seeking to avoid displacement wherever possible and there were good examples provided to support that approach. EBRD will require that a resettlement action plan/process be developed and applied to the whole Corridor (on the territory of the Federation of Bosnia and Herzegovina). This document will need to be made publicly available.

Non-Technical ESIA Summary for the whole Corridor Route
EBRD will require an overarching Executive Summary for the whole Corridor Vc to be prepared and disclosed. EBRD proposes to post this Executive Summary together with the web links to ALL four EIA’s on the Banks website.

Corridor Vc Site Selection
EBRD recognises that the route for the corridor for a major motorway through BiH has been established in a process that begun in the late 70’s. To meet EBRD policy requirements for public consultation on site selection the Bank will require evidence to support that public consultation on the site selection was carried out in full compliance with the law and a description of how the public was involved in the site selection.
Mitigation measures associated with the project are provided within the EIAs and will also be included within the RAP.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

Technical co-operation funds have been sought from the Western Balkans Fund for assistance to the FBHMD with transformation into an independent corporate entity.

Additional funds have been sought from the Central European Initiative for preparation of the Resettlement Framework for the Project.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Josip Polic, Operation Leader: policj@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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