A Chinese company was granted a concession for the construction of a highway section in the north of Bosnia, on the territory of Republika Srpska (RS) entity, the RS Government decided on Monday in a working-consultative session.

China Shandong International Economic & Technical Cooperation Group, a daughter company of Shandong Hi-Speed Group (SDHS), was granted the concession for the construction of Banja Luka – Prijedor highway for the period of 33 years, including the construction period, said the Government.

The Chinese investor was obliged to regularly pay the concession compensation which consists of one-time compensation, which is 1.5 percent of the investment's total value or EUR 4,466,600 and annual compensation – 5 percent of the profit gained through the performing of concession activity.

The company sent an offer to the RS Government on December 11, 2017, which was preceded by the signing of a series of documents by the Government and ‘Autoputevi RS’ public enterprise.

The Banja Luka – Prijedor highway is 42 kilometres long, with two lanes in both directions, traffic island and an emergency lane. According to the project design, the highway section would consist of seven tunnels and 35 bridges, three interchanges and the infrastructure for a closed system of the toll payment as well as the system for traffic safety management and control.