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Home > Press release > Mostar locals continue to resist Corridor Vc routing amid new tunnel loan talks

Mostar locals continue to resist Corridor Vc routing amid new tunnel loan talks

On 11-13 March a Bankwatch team visited Mostar and the nearby villages of Kosor, Ortiješ and Malo Polje. The team met with more than 25 landowners from the three villages, visited vineyards in Ortiješ, nearby construction sites on the Corridor Vc, and the Podveležje ridge. They discussed with local people the developments in the valley, ongoing legal action and the results of complaints at the EBRD’s accountability mechanism.

19 March 2024

Corridor Vc -- the Počitelj bridge

Although the expropriation process for the South Mostar – Tunnel Kvanj section of the highway is at an advanced stage, some households are not willing to sell their land and are defending their rights, including in court, objecting to the way the route selection and expropriation has been carried out.

More than 20 people in Malo Polje, who have properties in the immediate vicinity of the planned highway route, told Bankwatch that no one has contacted them about the project’s impacts on their houses and land. They are extremely worried about damage and property value plummeting when the valley turns into a massive construction site, especially since the local economy, including tourism and residential construction, has been flourishing in recent years. Under these circumstances, routing the motorway through the valley looks more indefensible than ever.

The complaint mechanism of the European Bank for Reconstruction and Development (EBRD) has concluded that the route selection process was not transparent and lacked public participation, and that new environmental and social assessments for the section are needed. The mechanism has recommended a reassessment of the route alternatives, however, the project promoter, JP Autoceste, has rejected such an option.

Meanwhile, the EBRD has signed a new EUR 220 million loan for the North Mostar – South Mostar section. The 15 kilometers road will include a two kilometers long tunnel and is expected to cost in total EUR 433 million.

The EBRD and the European Investment Bank are also considering loans for a 10-km long, EUR 600 million tunnel through the iconic Prenj mountain. Home to bears, wolves and other protected species, the area is planned to become a National Park, but has not yet been protected. The current routing was chosen without public consultations, turning the tranquil Podgorani and Bijela valley areas into a motorway corridor, and threatening a new public backlash.

Fidanka Bacheva-McGrath, Bankwatch, says: ‘Four billion Euro from the EU, international banks and BiH have been invested in the construction of the Corridor Vc so far. It is incomprehensible that a project that has received such significant international financial backing can continue without following international standards.’

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Institution: EBRD | EIB

Theme: Corridor Vc

Location: Bosnia and Herzegovina

Project: Corridor Vc motorway, Bosnia and Herzegovina

Tags: Bosnia and Herzegovina | Corridor Vc | EBRD

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