February 1 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it is providing a 25 million euro ($27.3 million) sovereign loan to Bosnia and Herzegovina's Sarajevo Canton for the construction of a new tramline in the capital.
The funding will be used to finance the works on 13-kilometre tram tracks from the suburbs of Ilidza to Hrasnica, including the construction of a U-turn, as well as 20 tram stations on the route, the EBRD said in a press release.
This project will expand the existing tram-track network by around 50%, thus reducing traffic congestion in the city.
The Sarajevo Canton said in September it has selected a consortium comprising Turkish civil engineering companies Yapi Merkezi Insaat ve Sanayi and Yapiray Demiryolu Insaat Sistemleri Sanayi ve Ticaret to build the tram tracks from Ilidza to Hrasnica.
The Sarajevo Canton is one of ten cantons making up the Federation, one of two autonomous entities that form Bosnia and Herzegovina. The other entity is the Serb Republic.
($ = 0.9168 euro)