Wedoany.com Report-Oct. 26, Construction has begun on a 20km section of the 70km Banja Luka–Prijedor–Novi Grad highway in the Republic of Srpska. The project forms part of a key regional transport corridor aimed at improving road connectivity and supporting economic development in Bosnia and Herzegovina. A portion of the project’s financing has been provided by the Serbian Government, while the main funding source comes through a loan from the Chinese financial institution Sinosure.

The new highway linking Banja Luka with Prijedor and Novi Grad will speed transport for the Republic of Srpska

The Chinese company Shandong has been awarded the concession to develop and construct the route by the Public Company Motorways of the Republic of Srpska. The project agreement covers the design, construction, operation, and maintenance of the highway under a concession framework. Local construction firms have been engaged as subcontractors to support the work, contributing to regional employment and local economic activity.

The highway will connect Banja Luka, the administrative center of the Republic of Srpska, with Prijedor and Novi Grad, improving transport efficiency and safety across the region. Once completed, it is expected to shorten travel times, reduce traffic congestion, and enhance logistics for both domestic and international freight movement. The full 70km route will serve as a key infrastructure link within the wider regional network, facilitating smoother trade and mobility between major urban and border areas.

Construction on the initial 20km phase is currently progressing according to schedule, with completion of the entire project anticipated in 2026. The works include major civil engineering tasks such as roadbed preparation, bridge and overpass construction, and the installation of necessary drainage and safety systems. The project follows environmental and engineering standards aimed at ensuring long-term sustainability and resilience of the transport infrastructure.

The involvement of Sinosure and Shandong reflects growing cooperation between the Republic of Srpska and international partners in infrastructure investment. The project aligns with the region’s broader strategy to modernize its transport network and strengthen cross-border economic links through upgraded road connections.

Upon completion, the Banja Luka–Prijedor–Novi Grad highway is expected to provide significant benefits for residents, businesses, and travelers by improving accessibility and supporting regional economic growth. The combination of international funding, local participation, and modern engineering practices positions the project as an important milestone in the Republic of Srpska’s infrastructure development plan.