The World Bank has approved a €70 million ($80.97 million) loan to Bosnia and Herzegovina to enhance transport connectivity and modernize key road infrastructure, supporting economic growth and job creation. The project is complemented by an €8.5 million ($9.99 million) grant from the European Union’s Western Balkans Investment Framework, reflecting strong international collaboration.
The Federation Road Asset Management Enhancement Project will rehabilitate or upgrade around 150 kilometers of priority national roads to meet high safety and resilience standards. Key interventions include improving the Mostar North junction, one of the country’s most hazardous locations, as well as implementing traffic calming measures, clearer signage, and safer pedestrian crossings in approximately 20 school zones. A Road Safety Database will also be developed to enhance overall monitoring and planning.
Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro, highlighted that improved roads will link people to jobs, markets, and services while helping the country meet European Union standards. The project will also strengthen road network planning and management to ensure long-term asset maintenance and efficient use of public resources.
In addition, a Contingent Emergency Response Component allows rapid reallocation of funds to address road sector needs during emergencies. The project will particularly benefit rural areas, improving mobility, access to essential services, and trade opportunities, thereby expanding economic prospects for communities that depend heavily on agriculture and face higher poverty rates.
