Corridor 10 project in Serbia may be delayed

A series of challenges are now facing the project to construct Serbia’s key Corridor 10 highway. The EU has asked the Serbian Government for details of the priority plan and deadlines for the completion of the Corridor 10 highway. At present three sections of Corridor 10 are at risk, due to delays and financing issues. These are the Ciflik-Pirot stretch, the Bancarevo tunnel and the Vladicin Han section. According to Serbian roads company Koridori Srbije, the construction schedule will be set by the end of
April 2, 2013 Read time: 3 mins

A series of challenges are now facing the project to construct Serbia’s key Corridor 10 highway. The 3287 EU has asked the Serbian Government for details of the priority plan and deadlines for the completion of the Corridor 10 highway. At present three sections of Corridor 10 are at risk, due to delays and financing issues. These are the Ciflik-Pirot stretch, the Bancarevo tunnel and the Vladicin Han section. According to Serbian roads company 3235 Koridori Srbije, the construction schedule will be set by the end of 2013. The 2332 World Bank (WB), the 1166 European Bank for Reconstruction and Development (EBRD) and the 1054 European Investment Bank (EIB) are all involved in the discussions into the financing of the project. And the Greek Government is considering withdrawing from the Hellenic Plan for construction of Corridor 10. Some €89 million was secured from the Hellenic Plan to help finance construction of the Donji Neradovic - Levosoje section of Corridor 10. Facing its own economic woes, the Greek Government is cutting its budget. Meanwhile 63% of the Donji Neradovac-Srpska Kuca stretch, worth €22 million, has been completed. Work on the Srpska Kuca-Levosoje section of Corridor 10 will cost around €40 million, while €27 million remains to be used. The EIB and the EBRD will continue to finance works on Corridor 10 highway, while Serbia’s Government is searching for investors for the construction of Corridor 11. A total of €2.9 billion will be invested in construction of Corridor 10 and Corridor 11. During 2013 around 40km of the highway will be completed with this work costing around €1.2 billion. Some €8.98 million is being used for land expropriation and the necessary permits for the Corridor 10 project have already been issued. And Serbia’s Ministry of Transport says that 220km out of the 330km Corridor 10 highway route has been completed. All tenders and deals have been agreed and contracts awarded. The Ministry of Transport also wants to commence work on construction of Corridor 11, in cooperation with partners from Russia and Azerbaijan. But the EU has voiced opposition to Serbia's talks with China for construction of the Belgrade ringroad. Serbian road company Putevi Srbije has reported that it is planning to secure €370 million for road maintenance within the next four years. Funding will be secured in cooperation with the EBRD, the World Bank (WB) and the European Investment Bank (EIB). In 2013, a financial agreement will be signed with the WB for €77.76 million and with the EIB and the EBRD for a total of €200 million. In addition, the company will secure €100 million from other sources.

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