A Chinese company will be building a 42 kilometres-long highway connecting the northern towns of Banja Luka and Prijedor, officials announced on Thursday.

The director of the ‘SDHS CSI BH’ company, Yang Su, and Minister of Transport and Communications of Republika Srpska (RS), Bosnia’s Serb-dominated semi-autonomous part, signed the 33 years-long concession contract for the 297 million Euro stretch.

SDHS SCI BH is the registered representation office for the Chinese ‘Shandong International’ company.

Shandong International deputy President, Meng Yan, said he expects the road to be built in less than five years.

“We will use the influence our company has in China in order to draw as many companies from the Shandong province to come here and invest in the RS,” he said.

The highway will have four lanes, two in each direction, and is expected to have seven tunnels, 35 bridges, three intersections and three polling stations.

The Chairman of Bosnia’s tripartite Presidency, Milorad Dodik, RS President Zeljka Cvijanovic and Prijedor Mayor Milenko Djakovic also attended the signing of the document.

“We are aware that the construction of infrastructure will enable our further economic development, and this section, as well as upcoming ones, will help the development of the entire region, and with that also the development of Bosnia and Herzegovina,” Djakovic said.

Dodik said that the agreement represents a chance for development for the RS and that the intention is for the RS to be connected to neighbouring Serbia’s infrastructure as soon as possible.