Bosnia & Herzegovina Road Rehabilitation Project

complete

The proposed project concerns rehabilitation and reconstruction of key sections of the primary road network in BiH The main purpose of this project is to bring the primary road network in BiH up to a maintainable standard. The Project will also assist in the introducing of performance-based road maintenance contracts in selected pilot regions with the aim of improving the effectiveness and efficiency of road maintenance works in the two Entities: Federation of Bosnia-Herzegovina (“FBH”) and Republika Srpska (“RS”). Introduction of performance-based road maintenance contracts on a pilot basis. The introduction of this innovative procurement practice is aimed at improving the effectiveness and efficiency of operations and should eventually result in better value-for-money in terms of road condition versus maintenance expenditure. Assistance to the two road companies to upgrade their financial management systems in order to improve their mid-term business planning and reporting in accordance with IFRS. The project will also explore with relevant authorities the need for further reforms concerning transparency and stability of fuel tax earmarked for road maintenance. The State of Bosnia and Herzegovina (BiH), the Governments of the two Entities comprising the State - Federation of Bosnia and Herzegovina (“FBH”) and Republika Srpska (“RS”) and the relevant Road Authorities of the Entities – the Federation of Bosnia and Herzegovina Roads Directorate (FBHRD) and Republika Srpska Roads (RSR). EUR 75 million, Sovereign Loan to Bosnia and Herzegovina, with on lending to the two political Entities comprising the State. The project will be co-financed with the EIB and the World Bank. Total project cost is estimated at EUR 230 million. The proposed project has been screened IEE, requiring a site visit to review the scope of the investment programme and establish whether the project level is “A” according to EBRD Environmental Policy. Based on the review of the programme, the project category will be determined and environmental due diligence level defined. Technical co-operation fund will be sought for assistance to the FBHRD and RSR for implementation of performance based maintenance contracts as well as for business planning and financial management improvements.