ON JUNE 11 the European Bank for Reconstruction & Development approved a €21m loan to fund refurbish 395 route-km of pan-European Corridor Vc in Bosnia-Herzegovina. A further €40m will come from the European Investment Bank, and €4·4m in grants from Canada, Japan, Sweden and the USA.

Corridor Vc forms the main international rail link through Bosnia, connecting Banja Luka with Sarajevo, Mostar, and the port of Ploce. The EBRD funding will pay for new signalling and the purchase of new track maintenance machinery. The EIB element will fund the replacement track materials.

The loan to the State of Bosnia-Herzegovina will be distributed through the Republic of Srpska and the Federation of Bosnia and Herzegovina, to the three rail operators: Railways of Bosnia and Herzegovina (ZBH); Railways of Herzeg-Bosnia (ZHB); and Republic of Srpska Railways (ZRS).

H EBRD is also considering an €50m loan to finance modernisation and efficiency improvements at the Serbian rail operator ZTP.