Euro-asfalt, a Sarajevo-based company, has won a contract for work on the Hranjen Tunnel that will shorten journey times between Sarajevo and Goražde.
The award by the government agency Highways of the Federation of Bosnia and Herzegovina - JP Autoceste FBiH - is reportedly worth around €20 million.
The Hranjen Tunnel is part of the Prača-Goražda expressway, consists of two bores, each 5.5km long with one a two-lane tunnel for traffic and the other for maintenance and which will double as an escape route.
Completion is expected next year.
According to media reports, the cost of construction has risen from €41.5 million to €102 million, mainly due to unexpected geological conditions.