Bank of China provides EUR 41 million loan — via EPCF arrangement — for Doboj Hospital Construction Project

Project narrative

On March 14, 2019, China Sinopharm International Corporation and Shanxi Construction Investment Group signed an EPC Plus Financing (EPC+F) contract with Republika Srpska’s Ministry of Health and Social Protection (the project owner). Under the terms of the contract, Republika Srpska’s Ministry of Health and Social Protection agreed to pay EUR 52 million to China Sinopharm International Corporation and Shanxi Construction Investment Group Co. Ltd. for the Doboj Hospital Construction Project. China Sinopharm International Corporation and Shanxi Construction Investment Group, in turn, secured an EUR 41 million Bank of China loan to partially finance the EUR 52 million commercial contract. The borrowing terms of the loan are unknown. The purpose of the project is to construct a new ‘Saint Luke the Apostle’ hospital building with 464 beds in the city of Doboj. The project site is located near three hectares of land next to the M-17 highway, which connects the north and south of BiH. China Sinopharm International Corporation and Shanxi Construction Investment Group are the EPC contractors responsible for project implementation. A formal foundation-stone laying ceremony took place on March 14, 2019. However, project implementation did not commence until December 17, 2019. The building’s topping-out ceremony took place on September 17, 2021 (implying the completion of the building's structural frame). In August 2023, Alen Seranic, Republika Srpska’s Minister of Health and Social Protection, announced that the completion of the remaining construction works was delayed by heavy rainfall. The project was originally expected to reach completion within 36 months (December 17, 2022) although there is no further information of completion.