Peace Highway in Western Balkans to enable faster trade, economic growth and regional integration, backed by EU finance
Improved transport is vital for the economic development of the Western Balkans. Every new kilometre of road is a step closer to prosperity for the region. The recently opened 5.5 km section of the Niš-Merdare highway in Serbia, also known as the ‘Peace Highway’, is expected to bring people, towns and businesses closer.“We want the road to be a symbol of peace and stability in the region,” said Emanuele Giaufret, EU ambassador to Serbia, at the highway’s inauguration in Jully. “This road will connect the south of Serbia with the Western Balkans network and enable the free flow of people, goods and capital from Niš, via Priština, to Tirana and Durrës.”
Faster development of districts in Southern and Central Serbia
The Niš-Merdare Highway E-80 is an extension of Corridor X, which links Bulgaria with the Adriatic Sea and on to Albania. It is a part of the Peace Highway, which consists of sections between the cities of Niš (Merošina), Pločnik, Merdare and Priština, with a total length of 103.4 km.
The European Investment Bank and the European Bank for Reconstrution and Development are lending €185 million for the first phase from Niš to Pločnik, along with a €40 million EU grant and financing from the Serbian government.
At the inauguration, Serbian President Aleksandar Vučić underlined that good connectivity is very important in attracting foreign investors to the Toplica district in southern Serbia.
“I wish to thank our partners from the European Union for their great support, and for the €40 million grant provided for this road section,” Vučić said.
“In 20, 30 years from now,” he said, “this is going be one of the busiest highways.”
Improved road safety and capacity
Once completed, the highway will bring new investment, jobs and business opportunities for Southern and Central Serbia by connecting the industrial zones of Niš, Kuršumlija and Prokuplje, and enabling faster trade with Albania and the European Union. The travel time between Niš and Merdare will be halved.
New road infrastructure will reduce traffic accidents by 16%, thanks to enhanced safety, capacity and quality. Traffic congestion will be significantly decreased, as the current road network crosses urban and rural areas that cause frequent bottlenecks in the cities along the highway and at the border crossing in Merdare.
“The highway will mean a lot, because it will relieve the city of Prokuplje of transiting traffic,” says Miodrag Pantović, a resident of Prokuplje, which is the administrative centre of the Toplica district. “The heavy vehicles that are now passing through the city center will be able to bypass it via highway.”
Over €140 million grant from the European Union
The Peace Highway is one of the flagship projects of the EU’s Economic and Investment Plan for the Western Balkans. The estimated cost of the project is €947 million, supported by more than €140 million in EU grants, channelled through the Western Balkans Investment Framework. It also benefits from the WBIF technical assistance for the preparation of feasibility studies and detailed design.
Symbol of cooperation and connectivity
The contract for this first part of the highway was signed in September 2021 during the visit of European Commission President Ursula von der Leyen.
“I was very glad to be here – to witness this signature,” von der Leyen said at the time.
“A signature that is a symbol of our powerful cooperation and connectivity projects,” she said. “And with that, we are building together our common European future. Because I believe strongly that the future of Serbia is in the European Union.”
