B-H – EBRD: Funds for Water Supply of Čapljina and Railway Reconstruction Project



Deputy Chairman of the Council of Ministers of B-H and Minister of Finance and Treasury Dragan Vrankić and Head of Office of the European Bank of Reconstruction and Development in B-H Giullio Moreno signed today in Čapljina both a Mandate Letter for Čapljina Water Supply Project and the Contract No.1 on Amendments to the Loan Contract, of December 9, 2005, (Regional Railways Project) between B-H and EBRD.

Under the Mandate Letter for the Čapljina Water Supply Project, a procedure for conclusion of EUR 4 million-worth Loan Arrangement for the Project was initiated. The Project is the EU support through IPA Funds by EUR 4.5 million grant. A total value of Čapljina Water Supply System, to which this Mandate Letter refers, is EUR 8.5 million.

The Contract No.1 on Amendments on the Loan Contract, of December 9, 2005 is a continuation of the cooperation with the EBRD on financing the Railways Reconstruction Project in B-H.

Under this Contract, the Loan Contract, of December 9, 2005, is amended in a way that the previous Loan amount for this Project of EUR 70 million was expanded for an additional EUR 10 million. The additional funds will finance both the completion of the reconstruction of Southern section of the railway corridor V.c. through B-H - specifically Bradina-Sarajevo section - and rehabilitation of power supply sub-stations network along the whole of Sarajevo-Čapljina railway track. (end)