Tenders and financing for Serbian highways

The Serbian Government is considering a loan from China’s Export-Import Bank, which would pay for the construction of the E-763 highway. The bank looks set to give its approval for the €223 million loan, which would pay for 90% of the construction work for the E-763, or Obrenovac-Ljig, highway. The loan would be approved over a 20 year repayment period and a five year grace period at the fixed rate of 2.5%/year. Meanwhile tendering will open for completion works on Serbia’s Pirot-Dimitrovgrad highway unti
November 22, 2013 Read time: 2 mins
The Serbian Government is considering a loan from China’s 1290 Export-Import Bank, which would pay for the construction of the E-763 highway. The bank looks set to give its approval for the €223 million loan, which would pay for 90% of the construction work for the E-763, or Obrenovac-Ljig, highway. The loan would be approved over a 20 year repayment period and a five year grace period at the fixed rate of 2.5%/year.

Meanwhile tendering will open for completion works on Serbia’s Pirot-Dimitrovgrad highway until 9th January 2014. The project was originally to have been carried out by the Austrian company 2859 Alpine. However Alpine hit financial problems and work stopped, so the tender is for the remaining 14.3km of the highway still needing to be completed. The work will be funded by the 1166 European Bank for Reconstruction and Development (EBRD).

At the same time, there is now legal wrangling between the Serbian Government and the liquidation manager for Alpine, Jaksch Schoeller & Riehl. The Serbian company 3235 Koridori Srbije is seeking a repayment of €78 million in damages at the Vienna Trade Court. However Alpine is seeking payments from Serbia. A second review of the case will be carried out shortly for the respective financial demands.
Finance & Funding Road Structures

Related Content

  • Spain: 'spend more on maintenance'
    July 5, 2012
    Spain's road maintenance deficit has now reached €8.6 billion in the period since 2005, according to road maintenance companies. The industry has now asked the authorities to invest 2.5% of the roads value on maintenance to take up the shortfall. The companies include Imesapi and Dragados (ACS); Grupisa (Ferrovial); Acciona Mantenimiento de Infraestructuras (Acciona); Martinsa (FCC); Valoriza (Sacyr), and Elsan (OHL). This group says that the value of all the roads the Spanish government is responsible for
    Read More
  • Brazil: contractors fear more layoffs as DNIT fails to pay up
    November 25, 2014
    The head of Brazil’s association of road constructors has warned of more layoffs unless the National Department of Infrastructure and Transport (DNIT) starts paying its contractors. Jose Alberto Pereira Ribeiro, president of ANEOR – National Association of Road Works - said companies already have been forced to lay off around 1,700 workers in light of non-payment by the government. Another 950 employees are on forced holidays. Ribeiro claimed DNIT failed to meet its financial obligations for September
    Read More
  • ADB extends US$252mn loan to fund road construction in five India states
    April 9, 2013
    Philippines-based Asian Development Bank (ADB) has agreed to loan the Indian government US$252 million for key road construction projects. The 25-year loan has a grace period of five years, a commitment charge of 0.15% per annum, and the interest rate will be determined on ADB’s LIBOR-based lending facility. The loan will be used to finance the construction of 3,461km of all-weather rural roads in West Bengal, Odisha, Madhya Pradesh, Chhattisgarh and Assam with the first phase scheduled to complete in Decem
    Read More
  • 851.3mn Euro government loan to Portuguese road management company
    December 14, 2012
    Portuguese road management company Estradas de Portugal (EP) received government loans totalling €851.3 million between January and September 2012, bringing the firm's total debt to €2.7 billion in the third quarter of 2012. The amount lent to EP was part of a €2.25 billion sum lent to a variety of non-financial state-owned companies in the first nine months of this year. However, the loans equated to less than half the amount granted by the government in loans to non-financial state-owned firms in the same
    Read More

Highlighted Content