Serbia’s road network may benefit from major Chinese investment

Talks between the Chinese Development Bank and the Serbian Government could result in Chinese funding for Serbian highway projects. The Danube coast project and the Corridor 11 highway project have been identified. Some €400-€450 million of Chinese financing could be made available to Serbia for highway projects following the most recent series of discussions. Serbia’s Ministry for Transport is also in talks with Chinese partners for the construction of a series of highway projects.
September 27, 2012 Read time: 2 mins
Talks between the Chinese Development Bank and the Serbian Government could result in Chinese funding for Serbian highway projects. The Danube coast project and the Corridor 11 highway project have been identified. Some €400-€450 million of Chinese financing could be made available to Serbia for highway projects following the most recent series of discussions.

Serbia’s Ministry for Transport is also in talks with Chinese partners for the construction of a series of highway projects. These include 100km of the Belgrade-Cacak, Belgrade-Obrenovac, Preljina-Ljig and Lajkovac-Ljig highway projects, as well as the 100km Pojate-Preljina project. 3366 China Road and Bridge Corporation (CRBC) is the contractor showing strongest interest in the Pojate-Preljina regional highway, while a loan for the project may well come from China's Exim Bank with a repayment period of 18 years.

Serbia’s Ministry of Transport has been carrying out extensive research into the cost of highway construction in the country, with huge variations depending on topography and geology. The Serbian Ministry of Tranport has reported that the cost of construction of highways in Vojvodina county ranges from €1.5-€2.5 million/km, while in Grdelicka Klisura costs range between €10 million and €15 million/km.

Meanwhile, in the mountainous terrain between Ljig and Cacak highway construction costs around €7.5 million/km. However, the straight highway section from Obrenovac-Ljig is also costing around €7.5 million/km. Serbian contractors are building the 12km stretch of highway from Ub-Lajkovac for around €5.8 million/km.

For more information on companies in this article

Related Content

  • Serbia tunnel project due for completion
    June 26, 2012
    Works on Serbia’s Strazevica tunnel is due for completion in May 2012. The tunnel forms part of the Belgrade ring road. Serbia’s government is also planning to finish the construction of a total of 200km of the Corridor 10 motorway, following the completion of the Strazevica–Bubanj and Batajnica–Dobanovci sections. Work on the remaining 130km will commence soon. Meanwhile, work on the Ljig–Preljina section of Corridor 11 is now underway.
    Read More
  • Serbia highway projects moving ahead
    September 30, 2016
    Progress is being seen in Serbia with regard to some of the country’s key highway projects. The Ljig-Preljina stretch of the Corridor 11 highway will open for traffic at the end of October 2016. The highway route will be tolled but these will not be implemented until the start of 2017. Plans are also moving ahead for the ring road project for the capital, Belgrade. Meanwhile talks are being held with the European Investment Bank (EIB) over the new highway link to run from Nis, through Merdare and over the b
    Read More
  • Montenegro ensuring sound motorway financing
    June 4, 2015
    Montenegro is ensuring it has sound financing in place for the new Bar-Boljare highway that will link it with Serbia. The country has a €687 million loan in place for the project that was provided by China's Exim Bank. The country’s Ministry of Finance is setting out a strategy that will protect it from risk. The loan was provided (in US$) for a 20 year repayment period, with a grace period of six years. However Montenegro’s Ministry of Finance is taking steps to prevent any future currency fluctuations fro
    Read More
  • Work on Serbia’s Corridor 10 highway is on track
    April 3, 2014
    In Serbia work on the Corridor 10 highway looks set to be completed as planned in 2016. Serbian roads company, Koridori Srbije, says that that the Corridor 10 motorway should be completed by the middle of 2016. The World Bank (WB) mission visited building sites on Corridor 10 and said that considerable progress has been made, with an additional 23% of works having been carried out in the last 18 month period. In 2014 alone, 50km of the route will be completed. Work is being carried out on 238 bridges, out o
    Read More

Highlighted Content