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The Government of the Republic of Serbia

In the service of citizens

Pre-contract with Chinese company for construction of parts of Corridor 11 signed

Belgrade, 27 December 2012

The Serbian Ministry of Construction and Urban Planning signed today a pre-contract for the construction of parts of Corridor 11 from Obrenovac to Ub and from Lajkovac to Ljig with representatives of Shandong Hi-speed Group from China, and the value of this investment is $333 million.

From left: Liu Zhicheng, Velimir Ilic and Dmitar Djurovic

The pre-contract was signed by Minister of Construction and Urban Planning Velimir Ilic, representative of Chinese company Shandong Hi-speed Group Liu Zhicheng and Director of Koridori Srbije company Dmitar Djurovic.

Ilic announced on this occasion that the final contract will be signed soon and that the construction works might start in March next year.

Noting that the construction of these two lanes, whose total length is around 50 kilometres, will be financed by a Chinese loan that has already been approved, with the interest rate of 2.5%, Ilic said that the maximum departure from the projected price will be 10%.

The share of the Chinese company in this project will be 51% and of Serbian companies 49%, while the total hire of Serbian labour force on this project will be around 70%, Ilic said and explained that the Chinese company will hire a part of our labour force.

The Minister specified that the preparation works will last three months and that the final deadline for the completion of the motorway from Obrenovac to Ub and from Lajkovac to Ljig is 38 months.

The construction of the motorway from Obrenovac to Preljina near Cacak is completely financially covered, Ilic underlined, adding that the motorway form Belgrade to Obrenovac will be built through public-private partnership.

According to Ilic, this investment is very important and the agreement with the Chinese company was assisted by the Embassy of China to Serbia, the Serbian government and the Office of the Serbian President. Ambassador of China to Serbia Zhang Wanxue said that relations between Serbia and China have been very good over the past two years and that the new government of Serbia and Minister Ilic additionally improved this cooperation.

Representative of Shandong Hi-speed Group Liu Zhicheng recalled that this company built the longest sea bridge in the world, 42 kilometres long, which was opened in China in June 2011.

This bridge with 5,000 pillars connects the northern port city of Qingdao with an airport built on a nearby island and the industrial suburb of Huangdao. It cost over $1.5 billion and the works lasted around 4 years.