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

  • Minister gives green light for UK road schemes
    May 8, 2012
    Roads Minister Mike Penning yesterday gave the green light for development work to be carried out on six new major UK road schemes. The development work, which will take place over the next three years, aims to prime the road schemes for completion in the early years of the next spending review period (post 2015). The six proposed road schemes, which aim to boost economic growth as part of the Government’s National Infrastructure Plan, are:
    Read More
  • Brazilian road spend dips slightly for 2015
    July 9, 2015
    Brazil will spend at least US$1.63 billion in privately operated federal road infrastructure projects in 2015. This is down slightly, from $1.82 billion spent in 2014, according to estimates by the land transport agency NTT. Work this year includes a stretch of the BR-050 motorway operated by MGO, which already has seen around $104 million. Road operator Concer, which administers sections of the BR-060, BR-153 and BR-262, invested nearly $88 million between 2014 and the first quarter of 2015. Arter
    Read More
  • Chinese highway project under construction
    February 9, 2017
    China’s infrastructure expansion programme is in the process of transforming the country. Meanwhile its construction market is the largest in the world, comprising around 25% of the country’s US$11 trillion economy. However, slowing domestic growth in recent years has encouraged the Chinese Government to invest in key infrastructure projects in a bid to improve the country’s transport connections.
    Read More
  • Turkish highways and bridge project financing secured
    June 7, 2018
    The financing package that will pay for Turkey’s €2.43 billion Malkara to Çanakkale highway and 1915 Çanakkale Bridge has now been secured. This follows on from Mott MacDonald completing its technical due diligence of the project documentation. The project will be handled under the PPP model. The centrepiece of the project is the €1.68 billion Çanakkale 1915 bridge. This will be over 4.6km long, with a 2,023m main span that will be the longest in the world for a suspension bridge. It will allow a clearance
    Read More

Highlighted Content