The European Investment Bank (EIB), together with the European Bank for Reconstruction and Development (EBRD) and the World Bank (WB) signed a €273.8 million loan agreement with the Serbian Ministry of Finance.
On 27 November, EIB, EBRD and WB signed in Belgrade three loan agreements totaling €273.8 million aimed at supporting the rehabilitation and safety of part of the Serbian national road network. According to the EIB, the project will involve the rehabilitation and safety of about 1,100 km of major roads throughout Serbia over the next five years. The total cost of the infrastructure project is estimated at €390 million, of which €367 million for rehabilitation works and €23 million for services including detailed design, institutional strengthening and technical assistance. The project supports the implementation of the first phase of the Government’s National Road Network Rehabilitation Program.
The investments will be carried out by the Public Enterprise Roads of Serbia and will be financed jointly by the EIB with a €100 million loan, the EBRD with a €100 million loan and WB with a €73.8 million loan, and €116.2 million will be financed by the Government of Serbia.
Besides the improvement of the Transport network the project will also: (i) promote regional and national economic growth, facilitate trade, support private sector development and, in general, contribute to economic and social cohesion in the region; (ii) cater for international, inter-city and local traffic demand; (iii) have overall positive environmental and social impacts as it will improve access to markets and social services and also provide opportunities for temporary employment for local communities through civil works contractors.