Brcko Bypass

repaying

The EBRD is considering providing a loan of up to €28.5 million for the construction of a two lane 18.7 km single carriageway bypass around the Brcko town. The objective of the proposed Project, when approved by the EBRD’s Board of Directors, is to alleviate traffic congestion in Brcko as well as improve access to the Brcko port and the other industries located on the outskirts of the town. The broad transitional themes are the transformation of the road department into a separate road agency of the Brcko District and the establishment of a stable source of funds from the fuel levy for this new company. The Client for this project is the Brcko District Division for Roads and Public Spaces, which is a part of the Public Works Department, who will also act as the Implementing Agency. The EBRD is considering providing a sovereign loan of €28.5 million. The total project cost is €45 million, with EBRD providing loan of €28.5 million, the Brcko District a contribution of €16 million and a €0.5 million grant under the EU-IPA programme. The project has been categorised B in accordance with the EBRD's 2008 Environmental and Social Policy as the environmental and social impacts associated with the construction of the new by-pass road can readily be assessed and mitigated as part of environmental and social due diligence. Due diligence is underway and is to include a review of the feasibility study EIA, contractor management requirements, the land acquisition needs of the project and other project documentation for compliance with the Banks Performance Requirements (PRs). New and additional information on the project, particularly social impacts will be publicly disclosed in an updated Non-Technical Summary document. Brcko is a Special District outside the jurisdiction of the Federation of BiH and RS. The Local Administration has established a number of local laws particularly with respect to land acquisition that may be of relevance to the project that will be considered during due diligence. A Resettlement Action Plan will be developed for the project. The proposed carriageway is expected to provide improvements to safety, accessibility and the local ecomony. An Environmental and Social Action Plan will be prepared and agreed for the Project to address any environmental and social issues identified during the due diligence to achieve and maintain compliance with the Bank's PRs within a reasonable time-frame. This PSD will be updated when the results of due diligence are known. At present, a €0.5 million grant for institutional support to the roads agency from the EU-IPA programme is anticipated for this Project.