Road Infrastructure (Image by Pixabay)
The Serbian government has adopted two bills on ratifying financial contracts, whereby it will borrow EUR350 million for road infrastructure enhancement, website eKapija reported on March 3.
A EUR150 million loan has been arranged with the European Investment Bank for a project that encompasses the rehabilitation and increase of resilience of some 540 kilometers of state and local roads, with a focus on climate resilience and traffic safety.
The repayment period is 15 years, including a five-year grace period, while the funds will be drawn in multiple tranches, without paying the origination fee and commission on undrawn funds.
At the same time, a framework agreement worth EUR200 million has been signed with the Council of Europe Development Bank, for the rehabilitation of local roads in underdeveloped municipalities. The total estimated value of the project is EUR286 million and the rest of the money will be provided from the Serbian budget. The loan can be repaid for up to 20 years, with a five-year grace period.
The works on local roads will include the rehabilitation and replacement of worn-out pavements, expansion of roads, improvement of the drainage system, as well as the construction and reconstruction of sidewalks, bicycle paths and accessibility elements, and the project is slated for implementation from 2026 to 2029.
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