Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

World Bank extends $192.5m to Serbia for five projects

Belgrade/Washington, 21 June 2007

The World Bank approved loans and financial assistance for five projects to Serbia worth $192.5 million intended for the development of the Bor region, improvement of agricultural competitiveness, protection from floods, improvement of road conditions and road safety and improvement of energy situation in schools and hospitals.

The Bor region development project, for which a total of $43 million will be set aside, aims to resolve environmental and social issues caused by restructuring of the mining sector, as well as ensure new sources of economic growth and new jobs in one of the poorest regions of eastern Serbia.

Apart from better environmental conditions in the region, reduction of unemployment and growth in the small and medium-sized sector, the projects should directly intensify economic activities in the region, attract additional investments and donations and reduce the need for state assistance.

The International Development Agency (IDA) will allocate $10 million to the project in the form of an interest-free loan with a repayment period of 20 years, and the International Bank for Reconstruction and Development (IBRD) will ensure a $33 million loan with a repayment period of 17 years.

For the Serbian National Agriculture Strategy, and for competitiveness of its products in the Serbian and foreign markets, the World Bank has extended a $17 million loan and a non-repayable loan of $4.5 million.

The World Bank intends to spend $50 million on the project of prioritised protection from floods along the Rivers Sava and Danube, with a grace period of five years and a maturity period of 17 years.

According to the statement, the Serbian government and the World Bank concluded that considering the damage to infrastructure and agricultural land caused by flooding in 2005 and 2006, protection from flooding should be given more attention than before.

Efforts in this regard will be concentrated on the River Tisa basin, and also on the territory of the Rivers Tamis and Velika Morava.

Within the framework of the transport renovation programme, Serbia will get an additional $50 million for reconstructing 113 kilometers of highways and regional roads. This loan will help to improve safety on roads and make it possible to extend contracts for maintenance of roads in the Macva and Kolubara regions.

The IBRD loan worth $17 million, with a grace period of five years and a payment period of 17 years, has been provided for reform in the agricultural sector and improvement of village tourism in the region of Mt Stara Planina.

Under the same conditions an IBRD loan of $18 million has been provided for the project of efficient use of energy for which the IDA also approved $10 million, with a grace period of 10 years and a payment period of 20 years.

Serbia will use these funds for solving problems connected to energy supply, lighting and heating in hospitals, schools and similar facilities, throughout the country.