Bosnia awards 33-year motorway concession to China's Shandong

Bosnia awards 33-year motorway concession to China's Shandong
By bne IntelliNews October 2, 2018

The government of Bosnia & Herzegovina’s Republika Srpska decided to grant to China’s Shandong International Economic and Technical Cooperation Corp a 33-year concession to collect tolls on the Banja Luka-Prijedor motorway it is also building.

Shangdong applied at the end of last year for its first road construction project in the Balkans. 

According to the agreement, the Chinese company will be allowed to collect tolls on the 42 km long motorway for 33 years, but this period includes also the time when the road is under construction.

In return, Shangdog will pay the government a one-off concession fee equal to 1.5% of the total investment, or €4.47mn, and 5% of the annual revenue from tolls.

The cost of the motorway construction is estimated at €297mn. It will be planned, built and maintained by Shangdong, while in return Republika Srpska will pay the company an annual concession fee for the road's availability.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    5 days ago
  2. Saudi Arabia to scale back plans for Neom city
    9 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    5 days ago
  4. PANNIER: Caspian military drills that exclude Russia and Iran have some people in Moscow asking questions
    7 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    20 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    24 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    29 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    22 days ago

Reports

Dismiss