Page 22 - DMA Bosnia & Herzegovina Report 2013

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Investing In Bosnia & Herzegovina
osnia and
by Natalia Debczak-Debski
incethe end ofthe civil
Bosnia andHerzegovina (BiH) has
made great strides in rebuilding
its infrastructure network which
was left in severe disrepair. A number
of challenges still remain and attracting
investors and reliable strategic par tners is
one of the most impor tant preconditions
for continued growth and the successful
development of infrastructure in the
country. A fully improved infrastructure
network will also have a positive impact
on a wide range of other sectors of
the economy and provide the impetus
required to make BiH a fully economically
independent nation.
The country’s transpor t sector is one
of the key sectors in its economy.
Fur thermore, the favourable geographical
position of BiH lends it impor tance
within the wider European transpor tation
system, especially since the shor test
routes linking central Europe with the
Adriatic coast run through it. As a result,
it is attracting widespread interest from
multilaterals and private investors alike.
A number of ambitious projects, adopted
by the government and suppor ted by
international institutions including the
World Bank, European Union and the
European Bank for Reconstruction and
Development (EBRD) are currently
underway. These cover vital links such as
roads, railways, aviation, inland waterways
and urban transpor t, and aim to increase
the density of high quality transpor tation
facilities within the country.
Through donor assistance, extensive
rehabilitation work and repairs of the
damages sustained during the civil war
were conducted between 1996 and 2003,
with repairs being made to the country’s
main roads, bridges and tunnels. Under
the Emergency Transpor t Rehabilitation
Project, approximately 2,200km of roads
and 58 bridges were repaired, at a cost
of around EUR190mn. The Stabilisation
Force (SFOR) also provided significant
funds for the rehabilitation of the
country’s road network.
Today, the road network consists of
approximately 22,600km, with 3,788km
of main roads, 4,842km of regional roads
and 14,000km of local roads. However,
European roads, which amount to around
995km, and which cross the country
in many sections, do not yet permit
desirable traffic flow speeds. In a 2012
repor t, the Foreign Investment Promotion
Agency (FIPA) of BiH stated that
large-scale development programmes,
reconstructing approximately 850km of
main roads as well as constructing new
motorways, were currently underway.