For two years, the Chinese have not approved a 750 million credit for the highway in Srpska

VUKOSAVLJE/MODRIČA – Weeds, shrubs, and a heap of stones lie on the meadow where a new Chinese project in Republika Srpska was supposed to be nearing completion. The foundation stone for the construction of a new highway route from Vukosavlje to Brčko was laid at the beginning of the election campaign two years ago, and it could comfortably be laid again ahead of these elections, as almost nothing has been done on this route since then.

More than 700 days ago, it was ambitiously announced that the highway route, which would finally connect Banja Luka and Doboj with the Brčko District, could be completed by 2025. However, negotiations with the Chinese "Exim" Bank for a loan of around 750 million marks, estimated for the construction of just 33 kilometers through flat terrain, have not been concluded since then.
Five representatives of the Republic of Srpska government, led by President Milorad Dodik, along with four representatives from the Chinese company China State Construction Engineering Corporation (CSCEC), which won the tender, ceremoniously dug shovels into the gravel laid on the future route, which today is mostly overgrown with shrubs.
The then-Serbian member of the Presidency of Bosnia and Herzegovina, now President of RS Milorad Dodik, stated that the Vukosavlje-Brčko highway was proof of partnership, success, and the capability of Republika Srpska.

"This is a big step. I am proud that we leave behind us deeds," Dodik said in Garevac near Modriča, officiating the start of construction, and added that "the highway will be fully completed in the next four to five years."
A team from the CAPITAL portal confirmed that there is no progress on the highway when they visited the site where the foundation stone with a red ribbon was laid in the village of Gornji Kladari near Modriča, about a hundred meters from the hangar built by the aforementioned Chinese company for its base.
At the site of the ceremony, weeds have sprouted, everything is overgrown with shrubs, and apart from a pile of gravel somewhere in the middle of the plot, there is no trace of construction work.
Directly across from that location, on the other side of the main road between the municipalities of Šamac and Modriča, several excavators are parked. These excavators cleared grass and shrubs over a few hundred meters in the past few days and then stopped.
In conversations with passersby, it was learned that the excavators had cleared part of the shrubbery and fields in the last ten days, just enough to create the appearance of activity. None of them knew whether construction was imminent or when it might begin.
Efforts to obtain statements from workers and local supervisors of the company did not yield much success. Workers directed inquiries to supervisors, who then requested written questions but ultimately replied that they were unable to provide answers, redirecting inquiries to the "Highways of Republika Srpska."
Attempts were made to ascertain whether a financial plan had been finalized for the highway construction, under what conditions, and when construction was slated to commence and conclude. There were no responses regarding whether local subcontractors would be involved in the construction or how many properties along the route were designated for demolition, nor was there confirmation on the completion of property acquisitions.
Money for the construction of the highway has still not been secured. According to "Highways of Republika Srpska," the construction contract was signed on August 24, 2022, and on August 31 of the same year, the "commencement of this project was marked," including the laying of the foundation stone. However, it has been revealed that two years after the grand opening, Chinese partners have yet to resolve the financing for this project.
"Technical and study documentation is being prepared, along with activities necessary to obtain construction permits for main and preparatory works. The contractor has completed the conceptual design for the entire route and the main project for the first seven kilometers. Works are underway on constructing a workers' camp and a construction site platform, as well as preparatory works on the route for which construction permits have been issued. In addition, selection and supervision of works are ongoing, as well as negotiations with the Chinese 'Exim' Bank for financing, which is an obligation of the contractor according to the contract," said "Highways of RS."
"Highways of RS" stated that the deadline for construction is three years from the start of the works. They noted that the Chinese company has begun preparatory works in accordance with the issued permits. So far, two partial construction permits have been issued in the Modriča area. Expropriation for all parcels is nearing completion.
"On the highway section, 1,085 cases have been processed, with expropriation decisions made for all of them. Agreements on compensation have been reached for 866 cases, while proceedings to determine compensation are ongoing for 219 cases," "Highways of RS" added.
According to the plan, this highway route starts from the municipality of Vukosavlje, where its starting point is the interchange on Corridor VC, and its endpoint is Brčko.
The planned section of the highway is expected to pass through the territory of several municipalities: Vukosavlje for 2.6 kilometers, Modriča for 7.9 kilometers, Šamac for 10.5 kilometers, Pelagićevo for 8 kilometers, and Donji Žabar for 4 kilometers. Three interchanges are planned: Modriča, Gornja Slatina, and Lončari, along with a bridge over the Bosna River spanning 1,360 meters.

Previously, the Government of RS abandoned plans to grant a concession to the Chinese company "Sinochem Capital Investment Managements (Hong Kong) Limited" for the construction of this highway. Information about the new arrangement with Chinese investors remains undisclosed, typical for projects involving firms from that country.

Jovica Radulović, the mayor of Modriča, mentioned that official information is lacking, but unofficially, it is rumored that the project documentation for this highway is not yet complete.
"We know that a few days ago, excavators were widening the route for a few hundred meters, but no one informed the municipality about it. We issued approvals earlier, but we don't have official data. Expropriations have been completed; there was a part passing through returnee settlements in Garevac and Kladari, and the route was relocated to avoid passing over a church. The process has been completed, and work could have started long ago because it concerned houses and agricultural land," Radulović said.
He also mentioned that the foundation stone was laid at a spectacular event attended by RS officials and investors who have not been seen since.
"Pressure has constantly been applied from our municipality, urging for a new route to be drawn up to create a bypass around Modriča. With the opening of the Svilaj border crossing, all freight traffic from the direction of Tuzla now passes through the center of our city, right by our two central schools. The safety of our citizens is compromised, and we are in a state of collapse because of it. Our appeal to institutions has been ongoing, but we still have no response. We hoped that this route would be mapped out, but we don't know what will happen," said Radulović.
Acting Mayor of Vukosavlje, Dejan Jović, stated that they have no information regarding the construction of the highway but expressed hope that it will contribute to the development of their region.
"We have no precise information on when the highway construction will start. We believe it should have already begun since the foundation stone was laid two years ago. Expropriations have been completed, and citizens whose properties are affected are satisfied. We are not in a position to know the start date, but we are eagerly anticipating it," Jović said, adding that he knows the bridge over the Bosna River will be built first, followed by the rest of the highway section.
He emphasized the significance of the highway construction for their municipality, as it would connect them to highways in the Federation of Bosnia and Herzegovina leading towards the European Union. They see this as an opportunity for regional development, goods transportation, and the flow of people.
"We hope to seize the opportunity for development thanks to the highway passing through. A interchange will be built in the municipality of Vukosavlje, and we expect a significant traffic flow through our municipality," Jović expressed.

The daughter company of the contractor has built hospitals in Wuhan
China State Construction Engineering Co. Ltd. (CSCEC), which was supposed to build highways, is a Chinese state-owned construction company headquartered in Beijing. It is the world's largest construction company by revenue and the eighth largest general contractor by the value of overseas projects.

This company has numerous subsidiaries and divisions, including China State Construction Engineering Corporation Limited (CSCECL), established in 2007. This latter company conducted the world's largest initial public offering (IPO) in 2009 and had revenues of $7.3 billion that year.
It has built some of the largest buildings in the world and is known for constructing the Huoshenshan and Leishenshan hospitals in Wuhan in 10-12 days during the COVID-19 pandemic.
CSCEC came to Bosnia and Herzegovina in 2019 as one of the world's leading construction companies.
Representatives of CSCEC visited the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) in 2018 and expressed interest in investing in infrastructure projects such as roads, bridges, airports, ports, and energy projects.
Media reports mentioned CSCEC's interest in investing in infrastructure in Bosnia and Herzegovina, particularly in Corridor Vc, but specific projects have not been announced, and there is no available information on projects realized in Bosnia and Herzegovina, indicating that interest has remained at the level of preliminary discussions.

Chinese in Republika Srpska also build highway Banja Luka – Prijedor

Chinese in Republika Srpska also build a highway Prijedor - Banja Luka, which is the subject of numerous disputes because the Ministry of Transport persistently hides details of the contract for that highway.
Chinese company "Shandong Hi-Speed International" (SDHS) signed a concession agreement for this road in 2018, according to which the construction completion is planned for spring 2026.
Construction officially began in November 2021, and at the ceremony attended by the highest representatives of the RS authorities and Chinese investors, it was announced that the work would be completed within three years.
This happened a month before the emergency elections for mayor of Prijedor. Ten months later, just before the general elections, construction was announced again.
However, the works are far from over, and they have only obtained a construction permit for barely 15.7 kilometers.
Transparency International in Bosnia and Herzegovina has filed three lawsuits against the Ministry of Transport and Communications of RS for hiding this contract. The ministry completely ignored court rulings twice, and only after the third ruling, which obliged them to disclose details of the contract, was this done, but without the most important part of the contract concerning financial details.

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Another in a series of grandly announced Chinese projects in Republika Srpska, about which the public is only familiar with bombastic media announcements and photo opportunities from the laying of the foundation stone for the construction of a highway section, without being informed about the details. The fact that nearly two years after the foundation stone was laid, construction has not started, funding for the project is not secured, local authorities are not informed about the progress of the project, is another confirmation of the non-transparent and questionable activities of Chinese companies, as well as domestic authorities enabling such (in)action.

Behind this announced but still not started project likely lies the question of guarantees, considering that Chinese companies (backed by the Chinese state) regularly seek guarantees in the form of valuable assets (usually several times more valuable than the project itself). Since Republika Srpska cannot offer assets of the state of Bosnia and Herzegovina, neither is the Chinese investor willing to offer funds. Furthermore, it remains questionable how the cost of one kilometer of highway on this section now exceeds 22 million KM, whereas, for example, approximately 1.1 billion KM was invested in the construction of the first 106 kilometers of the highway network in RS, or slightly more than 10 million KM per kilometer, and here it is a similar (flat) terrain.