WASHINGTON, February 11, 2026 - The World Bank's Board of Executive Directors today approved a €70 million ($80.97 million equivalent) loan to Bosnia and Herzegovina to improve transport connectivity and modernize road infrastructure, essential drivers of jobs and economic growth. The project is complemented by an €8.5 million ($9.99 million equivalent) grant from the European Union's Western Balkans Investment Framework (WBIF), underscoring strong cooperation among international partners.
The Federation Road Asset Management Enhancement Project will tackle critical needs in the road network of the Federation of Bosnia and Herzegovina (FBiH). Investments will rehabilitate or upgrade approximately 150 kilometers of priority national roads to the highest safety and resilience standards. It will also enhance road safety by improving the Mostar North junction, one of the country's most hazardous locations, and by financing traffic calming measures, clearer signage, and safer pedestrian crossings in around 20 school zones. In addition, it will support the development of a Road Safety Database.
"We are pleased to support Bosnia and Herzegovina's efforts to strengthen its road infrastructure in a way that enhances safety, resilience, and connectivity," said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. "Better roads create opportunities, linking people to jobs, markets, and services while helping the country advance toward European Union standards."
Beyond the physical works, the project will also strengthen planning and management of the road network to ensure assets are properly maintained and public resources are used more efficiently over time. It includes a Contingent Emergency Response Component that can quickly reallocate funds to support the road sector in the event of an eligible emergency.
Upgrading these priority roads, many of which are major commuter routes, will improve daily mobility and expand economic opportunity across the FBiH. Rural areas, where poverty rates are higher and people depend on agriculture, are expected to benefit substantially from better access to jobs, services, and trade.
