The public company Republika Srpska Motorways (RSM) intends to implement the construction of the section of Corridor Vc motorway between Podnovlje and Rudanka (Kostajnica). RSM is established as a joint stock company wholly owned by the RS Government. The European Bank for Reconstruction and Development (the ‘EBRD’) is considering providing finance of a sovereign-guaranteed loan of up to EUR 70.0 million to the Company for construction of approximately a 6km section of Corridor Vc in RS – Project 1 or the “Project”. The loan will be guaranteed by the state of BiH with back-to-back guarantee from Republika Srpska (RS). A separate International Finance Institution (IFI) or institutions is considering providing parallel financing of up to EUR 100 million by a sovereign loan for an additional 14km stretch of adjoining motorway – Project 2, however this financing will occur at a later date and will be subject to its own, separate, due diligence and disclosure process. This document is a Stakeholder Engagement Plan (SEP) describing the planned stakeholder consultation and engagement process for the Project. The Project has been developed by RSM based on the Republika Srpska legislative requirements and those of the European Bank for Reconstruction and Development. Project Background & Need The Trans-European Corridor Vc is BiH’s main north-south transport route. It connects Budapest (Hungary) to the Adriatic port of Ploče (Croatia). Within BiH, Corridor Vc’s total length is approximately 335 km. The Project is located in the northern part of the country and is part of the planned 46.6kmlong section through the administrative entity of Republika Srpska. The Project is significant for connection of the western and eastern areas of Republika Srpska to the Corridor Vc and further to the Corridor X in Croatia. It will increase traffic capacity and reduce the traffic volumes on the existing regional road network. Planning of a motorway through Bosnia and Herzegovina as part of the Trans-European road corridors network started in the late 1970s. The Corridor route was defined in 1981 and after public consultations was formally approved as part of the Spatial Plan of BiH in 1982. The first major steps were taken in 2004 when the Council of Ministers of BiH decided to start the corridor development which was followed by the Feasibility Study and the Preliminary Design in 2006. The Spatial Plans of Republika Srpska (2008-2015 and 2015-2025) have considered the Corridor Vc through RS as an essential road transport link with significant economic benefits for the entity. 2. PROJECT DESCRIPTION The Project is situated in the north-east part of BiH (see Figure 2.1), about 100 km east of the town of Banja Luka. It is a rural area with a number of linear villages formed along the two regional roads: The M-17 (single lane in each direction) passing along the left bank of the River Bosna and the R-465 (single lane in each direction) along the right bank, parallel to the railway road Doboj – Modriča. The EBRD Loan will be used to finance the construction of two motorway interchanges, Johovac (Tovira) and Rudanka (Kostajnica), and a 6 km long motorway section between the interchanges, plus a two lane connecting road of around 1 km to link to the existing trunk road including a crossing of the River Bosna. This would be the first 6 km out of total 46.6 km of Corridor Vc that need to be constructed within RS territory.