The European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the World Bank (the International Bank for Reconstruction and Development/ IBRD) have signed today in Belgrade with the Serbian Ministry of Finance three loan agreements totalling EUR 273.8 million aimed at supporting the rehabilitation and safety of part of the Serbian national road network.
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 is estimated at EUR 390 million, of which EUR 367 million for rehabilitation works and EUR 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 EUR 100 million loan, the EBRD with a EUR 100 million loan and WB with a EUR 73.8 million loan; the balance of the investment cost (EUR 116.2 million) will be provided by the Government of Serbia.
The project is expected to improve the condition and safety of the National Road Network. It will also:
- promote regional and national economic growth, facilitate trade, support private sector development and, in general, contribute to economic and social cohesion in the region;
- cater for international, inter-city and local traffic demand;
- 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.