This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

BiH’s road infrastructure is fairly poor and underdeveloped.  At the time of this report’s publication, BiH has 179 kilometers of usable motorway (107 kilometers in the Federation and 72 kilometers in the RS).  Trunk roads and regional roads, with a total length of 8,501 km, represent the country’s core road network.  BiH is focused on finishing Corridor Vc, 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 in BiH from north to south.  The Bosnian Government has taken out multiple loans from lenders, primarily 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.  The December 2017 passage of a KM 0.15 (9 cent) per liter increase in fuel excise taxes to fund road construction should ease financial constraints on building highways in BiH.  Though progress is discouragingly slow, highway construction is ongoing.
 

Opportunities

The best opportunity may lie in the two most difficult segments of the project – the 60 kilometer stretch from Doboj to Zenica (north of Sarajevo) and the 125 kilometer stretch from Tarcin to Bijaca (the southern end point).  The estimated cost of construction for those two segments is approximately EUR 2 billion.  Procurement of construction equipment, such as asphalt patchers, bulldozers, backhoes, cranes, excavators, and mowing equipment as well as other road construction equipment, present 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.  Set to connect Sarajevo and Belgrade via two different routes, 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.
 

Web Resources

BiH Ministry of Transport and Communication
Road Directorate of the Republika Srpska
Road Directorate of Federation of Bosnia and Herzegovina

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