Minister of Finance and Treasury of Bosnia and Herzegovina Mr. Vjekoslav Bevanda, signed a grant arrangement with the Government of the Netherlands for the Modernization of regional road R-435 between Nevesinje and Berkovici.
The R-435 is a regional road of 32 km which connects the municipalities Nevesinje and Berkovići. This road was built at the end of the 19th century and is currently in a very poor condition, making it impossible to drive at speeds above 40 km/hour. As a consequence, the two towns are not very well connected and citizens have to drive long distances at detour routes to reach schools, hospitals and other public facilities. This project will modernize the regional road and improve accessibility and opportunities for economic growth of both municipalities, benefitting more than 15,000 people.
The grant of EUR 2.9 million has been approved by ORIO on behalf of the Netherlands Minister for Foreign Trade and Development Cooperation. The Ministry of Transport and Communications of Republika Srpska has applied for this ORIO grant. The ORIO program is a facility for infrastructure development carried out by the Netherlands Enterprise Agency on behalf of the Dutch Ministry of Foreign Affairs and it aims to contribute to human and private sector development.
For Bosnia and Herzegovina, three ORIO grants were approved in the amount of more than 13 million euros.
The total investment costs for the modernization of this road are EUR 12.3 million, out of which this grant will cover 27%, while the remaining necessary funds will be provided by Public Company RS Roads, backed up by a guarantee from the RS Ministry of Finance. It is expected that the redevelopment of the road will be completed by the end of 2021.