The Council of Ministers of Bosnia and Herzegovina on Thursday endorsed an agreement with the European Investment Bank (EIB) on a €300 million loan for the construction of a 35-kilometre-long motorway section that is part of the pan-European Vc corridor.

The borrowing will be used by the Autoceste Federacije Bosne and Herzegovina company, and the motorway operator will repay the loan over a period of 25 years with a six-year grace period.

The loan will be taken for building the Ovcara-Mostar motorway, including a tunnel through Mount Prenj.

Sarajevo is taking loans like this from the EIB and the European Bank for Reconstruction and Development to finance the upgrade of the road network and the pan-European corridor Vc connecting the port of Ploče on the Adriatic Sea with Budapest.