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EIB €40m loan for Belgrade ring road signed
Belgrade,
27 September 2010
Representatives of the Serbian government, the European Investment Bank (EIB) and public company Putevi Srbije signed agreements today on guarantees and a loan for the construction of a ring road around Belgrade.
Philippe Maystadt, Diana Dragutinovic and Zoran Drobnjak
The €40 million loan for a 5.4 kilometre section of the ring road from Orlovaca to Avala Road was signed by EIB President Philippe Maystadt and General Director of Putevi Srbije Zoran Drobnjak, while an agreement on guarantees for the loan was signed by Minister of Finance Diana Dragutinovic and Maystadt.
Dragutinovic noted that the loan has been granted under extremely favourable conditions with a 25-year repayment period, a seven-year grace period and a 0.7% interest rate plus Euribor at a six-month level, which is now less than 2%.
She specified that this is the second tranche of a €180 million loan which the EIB approved in 2007, adding that the first tranche amounted to €60 million, while an agreement about the third portion of €80 million will be signed next year.
The Minister indicated that the cost of the works on the ring road have been estimated at €360 million, noting the EIB approved half of this sum, the European Bank for Reconstruction and Development (EBRD) another €60 million, while the rest will be provided by Putevi Srbije.
She explained that the EIB plays a key role in attempts to mitigate effects of the crisis, together with the EBRD and the World Bank.
The Minister announced that the EIB will open a regional office in Belgrade in November, noting that since 2001 this Bank has invested €2.6 billion in Serbia and remains its reliable partner.
Maystadt declared that the ring road will increase road safety and alleviate congestion in the capital, adding that this is one of the seven projects the EIB is financing in Serbia and that so far it has earmarked over €700 million for road construction.
Last year the EIB secured €893 million for projects in Serbia and granted almost the same amount this year, while for 2011 it has huge plans for Serbia, Maystadt underlined adding that the Bank provides strong endorsement to Serbia on its EU path.
He affirmed that the EIB will take part in financing Fiat’s car production in Kragujevac, as well as the production of car part suppliers from Serbia.
Drobnjak confirmed that works on the ring road section from Orlovaca to Avala Road will begin in spring and will most likely be completed by June 2012.
Dragutinovic noted that the loan has been granted under extremely favourable conditions with a 25-year repayment period, a seven-year grace period and a 0.7% interest rate plus Euribor at a six-month level, which is now less than 2%.
She specified that this is the second tranche of a €180 million loan which the EIB approved in 2007, adding that the first tranche amounted to €60 million, while an agreement about the third portion of €80 million will be signed next year.
The Minister indicated that the cost of the works on the ring road have been estimated at €360 million, noting the EIB approved half of this sum, the European Bank for Reconstruction and Development (EBRD) another €60 million, while the rest will be provided by Putevi Srbije.
She explained that the EIB plays a key role in attempts to mitigate effects of the crisis, together with the EBRD and the World Bank.
The Minister announced that the EIB will open a regional office in Belgrade in November, noting that since 2001 this Bank has invested €2.6 billion in Serbia and remains its reliable partner.
Maystadt declared that the ring road will increase road safety and alleviate congestion in the capital, adding that this is one of the seven projects the EIB is financing in Serbia and that so far it has earmarked over €700 million for road construction.
Last year the EIB secured €893 million for projects in Serbia and granted almost the same amount this year, while for 2011 it has huge plans for Serbia, Maystadt underlined adding that the Bank provides strong endorsement to Serbia on its EU path.
He affirmed that the EIB will take part in financing Fiat’s car production in Kragujevac, as well as the production of car part suppliers from Serbia.
Drobnjak confirmed that works on the ring road section from Orlovaca to Avala Road will begin in spring and will most likely be completed by June 2012.
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