EIB, EBRD en Wereldbank steunen wegenherstel en veiligheid Servië (en)

PRESS RELEASE

BEI/13/195

27 November 2013

Serbia: EUR 273.8 million for road rehabilitation and safety

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:

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  promote regional and national economic growth, facilitate trade, support private sector development and, in general, contribute to economic and social cohesion in the region;

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  cater for international, inter-city and local traffic demand;

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  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.

Background information:

The EIB is the long-term lending institution of the European Union owned by its Member States. It has been active in the Western Balkans since 1977. Over the past ten years, it has provided finance totaling over EUR 7 billion. Since 2001, the EIB has extended about EUR 4 billion in favour of projects in Serbia, of which EUR 1.5 billion were signed in the transport sector.

To date, the EBRD has invested EUR 3.3 billion in 167 projects in Serbia, of which 40 per cent were in the infrastructure sector, including investments in the transport industry. Set up in 1991, the EBRD is owned by 64 countries and two intergovernmental institutions and supports the development of market economies and democracies in its countries of operations.

The World Bank has provided knowledge and financed 39 projects in Serbia since 2001 to the tune of almost USD 2 billion, including budget support. The current portfolio consists of 12 investment projects under implementation worth around USD 845 million.

Press contacts:

EIB: Marco Santarelli, +39 331 6595 594, m.santarelli@eib.org

Website: www.eib.org/press - Press Office: +352 4379 21000 - press@eib.org

EBRD: Axel Reiserer, Tel: +44 20 7338 6741, e-mail: reiserea@ebrd.com

WB: Vesna Kostic, External Affairs, Serbia, Tel: +381 11 3023 723, e-mail: vkostic@worldbank.org