The state-owned road construction enterprise and representatives of Euro-Asfalt company signed on Saturday a contract on construction of the Hranjen tunnel, which is considered the first stage of construction of the motorway between Sarajevo and the eastern town of Gorazde.

The tunnel construction value has been estimated at a little over EUR 40 million and its six-kilometres length makes it the longest tunnel in Bosnia and Herzegovina.

The road construction is assessed as historic by the locals. The motorway would reduce the journey from the Bosnia’s capital city to Gorazde from 95 to 56 kilometres, and instead of currently nearly two-hour car ride to 45 minutes.

According to Emir Okovic, the Prime Minister of Bosna-Podrinje Canton (BPC), the administrative unit where Gorazde is situated, the benefits of the road construction would be multiple.

In a relatively short period of time, Okovic added, the investment would be paid off.

Euro-Asfalt company was obliged by the contract to deliver the bank guarantees within 15 days, in order to meet the conditions for the start of the tunnel construction. The project will be carried out under the so-called yellow book of the international engineers standard known as FIDIC standard.

The deadline to finalise the works is 36 months. The funds for the construction were secured by a decision of the Government of one of Bosnia’s two entities, Federation (FBiH) entity.

According to FBiH prime minister, Fadil Novalic, the funds for the remaining part of the motorway construction will probably be secured through the OPEC’s Fund for International Development.

After the Tuzla region, this area has a potential to be one of the biggest industrial zones, said Bosnia’s Transport and Communications Minister Ismir Jusko, adding that “without a quality transport communication, this region would sooner or later start stagnating.”