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.

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