Bosnia and Herzegovina (BH) has overcome significant political and administrative challenges since the end of the hostilities in 1995. The war disrupted transport services, contributed to the large scale destruction of the transport infrastructure, and fragmented institutional responsibilities. Post-war reconstruction efforts have made tangible contributions to recovering the physical infrastructure and strengthening the institutional framework. However, significant challenges remain in a number of areas, not least the development of a transport network and an effective institutional framework, to facilitate rather than constrain economic development in BH, a transport network that, while minimizing the associated social and environmental costs, ensures that the country is fully integrated into the regional and European markets.
There is recognition of the importance of a comprehensive strategy for developing the transport sector in BH. The Medium-Term Development Strategy (MTDS) of BH asserts that the transport sector should contribute to the achievement of three goals: (i) it should create conditions for sustainable and balanced economic development; (ii) it should contribute to a reduction in poverty; and (iii) it should accelerate integration into the European Union (EU). The Protocol on Land Transport, contained in the Stabilization and Association Agreement (SAA), signed in June 2008, requires cooperation with the European Union in the following broad areas: (i) The development of transport infrastructure in a coordinated manner; (ii) market access, on a reciprocal basis, in the field of road transport; (iii) harmonization of legal and administrative supporting measures, including commercial, taxation, social and technical measures; and (iv) a transport system, which meets social and environmental as well as commercial needs.
Despite this recognition, there remains no comprehensive strategy for the development of the sector. There have been a number of regional plans, the most recent being the REBIS study,4 which was developed with support from the European Union. However, this study was primarily concerned with the definition of a ”core” transport network in the South East Europe region with the objective of improving regional integration. While undoubtedly worthwhile, the original plan, and the subsequent Multi-Annual Investment Plans prepared by the South East Europe Transport Observatory (SEETO), were prepared at an aggregate level with a clear focus to define the ”core network” for each mode, and the resulting investment priorities, independent of the potential synergies between them, and broadly unreflective of competing national considerations and priorities.
There have been two attempts to define a national transport strategy at the state level. The first attempt was the preparation of the Transport Master Plan for Bosnia & Herzegovina (BiHTMAP) in 2001. This study was the first comprehensive attempt to define priorities across all the modes, and in the sector more generally, in a consistent manner. Unfortunately, the final master plan was approved, but never officially adopted, reflecting a lack of agreement between key stakeholders. A second attempt was initiated in 2006 by the state Ministry of Communications and Transport (MOCT), collaborating with the two line entity ministries [the Federation Ministry of Transport and Communications (FBHMTC) and the Republika Srpska Ministry of Transport and Communications (RSMTC)]. However, a lack of consensus on, inter alia; which level (state or entity) was responsible for the development of a strategy and the main policy objectives for the strategy, meant that this attempt also floundered.
A number of different strategies have been produced at the entity level, but these, almost without exception, have been limited along one or more dimensions. These documents generally amount to statements of broad policy objectives, followed by lists of prospective projects along particular corridors, routes, or for particular modes. What is generally lacking is any strategic attempt to identify future investment needs based on a robust assessment of current and future demand over an appropriate timeframe. Equally, there is usually no assessment of the synergistic impact of projects across the sector more generally, or more seriously, any prioritization of the proposed investment projects that is reflective of the fiscal resources available, from different potential sources—public and private, internal and external. The result has been a patchwork of initiatives and projects, sometimes complementary, sometimes contradictory.
But improved economic development will require a safe, clean, affordable, and sustainable transport system, integrated both with the region and the rest of Europe. A strong transport system contributes to economic growth by reducing the economic distance5 to markets, by expanding opportunities for trade, by improving the competitiveness of national locations for production and distribution, and by facilitating mobility for a country’s citizens, while minimizing the social and environmental costs of the transport sector. Such a strategy will determine the priorities across all modes, determined by clear technical, economic and financial considerations. It will also enable the coordinated sequencing of interventions within the available funding constraints, and define necessary changes in legislation, regulations, organizations, and financing to implement the plans for the development of the sector, in a manner consistent with the development needs of BH as a whole.
This Transport Sector Review is intended to be a contribution to the dialogue over the development of a National Transport Strategy and Action Plan for BH. It is not intended to be prescriptive or act as a substitute for a nationally developed transport strategy, but it is intended in its review of the main modes, to highlight deficiencies and indicate priorities for a prospective national transport strategy and action plan, for further consideration by key stakeholders in BH. The main report synthesizes the contents, conclusions, and recommendations of a series of detailed sector reports covering the road, railway, urban transport, and inland waterway sectors, which are provided as Annexes to this main report.6 The intention is to provide a review of the current status of the transport sector in BH, identify the main sectoral challenges, both in institutional and physical terms, and outline a strategy and prospective Action Plan.
