Bosnia and Herzegovina - Infrastructure, power, and communications

The country's infrastructure , including highways, railroads, and communication networks were severely

damaged by the war. In 1991, Bosnia had 21,168 kilometers (13,154 miles) of highways, half of which were paved. The war destroyed 35 percent of these highways and 40 percent of their bridges. The railroads had 1,000 kilometers (600 miles) of track, three-quarters electrified, and damage to the system was estimated at US$1 billion. Sarajevo's international airport was destroyed in the fighting. From 1995 to 1998, more than US$1 billion in foreign aid was provided to rebuild the infrastructure, and much is being done to reconnect the telecommunications networks. A US$20 million loan from the European Bank for Reconstruction and Development should aid in this process; however, ethnic divisions have hampered reconstruction. Guiding and implementing projects through conflicting local interests, jurisdictions, price structures, and corruption schemes is complex and often time consuming.

Electricity is produced in coal burning (32 percent) and hydroelectric (68 percent) plants. Because of the war, electricity-generating capacity declined by four-fifths. Most hydroelectric plants are in the Croat-controlled area. Therefore, close cooperation across Muslim-and Serb-held territory is essential for power distribution. Electricity prices vary substantially, with the Serb Republic subsidizing them heavily within its area. Hydropower Tyrol (Austria) is investing US$6 million in the Federation's 4 hydroelectric facilities.