A contract to implement the financing of new sections on the Corridor VC, pan-European road link, connecting Budapest and eastern Croatia to the Adriatic coast through Bosnian territory, in an amount of EUR 180 million was signed on Tuesday by the general manager of the state-owned enterprise Autoceste FBiH.

The contract was initially concluded on September 12 by Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD). The funds provided by the EBRD would cover the cost of construction of a 5.5 kilometres long section in the central Bosnia, two tunnels and a section long 8.7 kilometres in the south of the country.

President of Bosnia's Federation (FBiH) entity, where the highway sections are located, and EBRD representatives in Bosnia gave a written support to the project.

EBRD's loan is divided in two instalments, the first one amounting to EUR 120 million, which will cover the 5.5-kilometre section and a tunnel construction, and another one of EUR 60 million that will cover the 8.7-kilometre section in the south.

The deadline to pay off the loan is 11 years with a four-year-long grace period.

EBRD's loan arrangement is accompanied by significant funds provided by the European Union in an amount of EUR 11.8 million aimed for the Ivan tunnel construction.