The Government of Republika Srpska adopted decisions on granting consent for the issuance of guarantees for credit obligations of the public company “Autoputevi Republika Srpska” in the total amount of 299 million euros, intended for the construction of two sections of the highway.
According to the decisions published in the Official Gazette of Republika Srpska, we are talking about the construction projects of the sections Brčko – Bijeljina and Vukosavlje – Brčko, writes Nezavisne Novine.
Loan for the Brčko – Bijeljina section
To finance the design and construction of the Brčko – Bijeljina section, 17 kilometers long, a loan of 119 million euros is planned.
Funds will be provided through credit arrangements with Chinese banks:
EUR 71.4 million with the Export-Import Bank of China (CEXIM)
47.6 million euros with China Construction Bank (CCB)
Loans will be repaid within 15 years, with a three-year grace period. Repayment will be made in half-yearly installments, while the interest rate is defined as the six-month EURIBOR increased by a fixed margin of 2.4 percent.
Loan for the section Vukosavlje – Brčko
The second decision refers to the construction of the section of the Vukosavlje – Brčko highway, about 33 kilometers long, for which a loan of 180 million euros is planned with the Export-Import Bank of China.
This loan also has a repayment term of 15 years, with a longer grace period of four years. The terms of the debt include the same interest rate – EURIBOR increased by 2.4 percent, with additional costs such as a commission on undrawn funds and insurance premiums with the Chinese agency Sinosure.
Guarantee of the Republic of Srpska
Republika Srpska, as the guarantor, undertook to settle all due and unpaid obligations from the budget in the event that the public company is unable to service them.
The end user of the funds and the debtor of the loans is the Public Enterprise “Autoputevi Republika Srpska” doo Banjaluka.
These investments are part of a wider road infrastructure development plan, with the aim of improving traffic connectivity and economic development of this part of Bosnia and Herzegovina.
