Bosnia and Herzegovina - Country Commercial Guide
Ground Transportation
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BiH’s road infrastructure is poor and underdeveloped.  At the time of this report’s publication, BiH has 220 (137 miles) kilometers of usable highways (70 miles in the Federation and 66 miles in the RS).  Trunk roads and regional roads, with a total length of 8,501 kilometers (5,282 miles), represent the country’s core road network.  BiH is focused on finishing Corridor Vc (“Five C”), the only major highway that connects north and south BiH in a single stretch.  Once completed, the highway will link BiH with European road networks.  The Corridor Vc project, a major road construction project that has made some progress since it was first designed, is a part of the Trans-European ground corridors network.  Its final design will connect the central part of the Adriatic Sea coast and Budapest, Hungary.  The Corridor Vc will run 336 kilometers (209 miles) in BiH from north to south.  The Bosnian Government has taken out multiple loans from lenders, primarily the European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB), to fund the construction of the Corridor Vc.

Corridor Vc’s central objectives are BiH’s inclusion into Europe’s main traffic flows, as well as easier access to the European marketplace.  Experts predict that the motorway will be the prime mover of economic activities in BiH and should enable connectivity to its neighboring countries and regions.  Historically, advancement in this sector has been impeded by issues concerning inter-entity coordination, the absence of a coherent strategic vision, political obstructionism, and a lack of funding.  In early 2022, the EU temporarily suspended financing of the construction of Corridor Vc in Republika Srpska until the work of state level institutions is unblocked by the Republika Srpska representatives and the state-level institutions are returned to full functionality.  The December 2017 passage of a KM 0.15 (9 cent) per liter increase in fuel excise taxes to fund road construction has eased financial constraints on building highways in BiH.  Though progress is discouragingly slow, highway construction is ongoing.


The best opportunity may lie in the two most difficult segments of the project – the 60-kilometer (37 mile) stretch from Zenica to the border with Croatia (north of Sarajevo) and the 125-kilometer (78 mile) stretch from Tarcin to Bijaca (the southern end point).  The estimated cost of construction for those two segments is approximately EUR 2 billion ($1.1 billion).  The southern section will include the construction of the 10.5-kilometer (6.5 mile) Prenj tunnel, with estimated completion date of 2028.  The tunnel’s estimated cost to construct is around $620 million.  Most of the financing required was provided by the EBRD and EIB.  After the Federation government issued a tender in September 2022 for the main contractor, three companies have been shortlisted and are currently under review.  Procurement of construction equipment, such as asphalt patchers, bulldozers, backhoes, cranes, excavators, and mowing equipment, as well as other road construction equipment, presents significant opportunities as the construction of Corridor Vc continues.

An agreement has been reached on the Sarajevo-Belgrade Highway project, planned to be built between Sarajevo and Belgrade with Turkey’s support.  The project is reported to cost around 1.8 billion euros (around $2.1 billion).  However, debate over the highway’s route is ongoing and will require continued negotiations before construction can begin.

In 2020, RS Highways launched an international tender for the construction of three sections of the highway from Vukosavlje, through Brčko and Bijeljina, to Rača and the border with Serbia, with a total value of KM 1.35 billion ($813 million).  The tender is divided into three lots – the Vukosavlje-Brčko section, with an estimated value of KM 600 million ($31 million), the Brčko-Bijeljina section, which should cost KM 310 million ($186.7 million), and the Bijeljina-Rača section, worth KM 440 million ($265 million).  The Vukosavlje-Brčko section is about 33 kilometers (21 miles) long, the Brčko-Bijeljina section is 17 kilometers (11 miles), and Bijeljina-Rača is 20 kilometers (12 miles) and should be part of the future Sarajevo-Belgrade highway.  Successful companies or consortia to which the contracts will be awarded will be obliged to provide 85% of the project funding, while the RS government will provide loan guarantees.  The tender was cancelled in May 2021 due to the lack of interested companies.


BiH Ministry of Transport and Communication

Road Directorate of the Republika Srpska

Road Directorate of Federation of Bosnia and Herzegovina