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Serbia borrows 136 million euros for the Danube Corridor - Serbia Business

Serbia borrows 136 million euros for the Danube Corridor

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Serbia will take a loan in the amount of 16 billion dinars (136.3 million euros) from NLB Komercijalna banka to finance the project of building a high-speed road from Požarevac to Golupec.

The commercial design and construction contract was signed in August 2021 between the Government of Serbia, “Corridor of Serbia” and the company “China Shandong International Economic and Technical Cooperation Group”, which is the contractor.

NLB and Serbia concluded the long-term investment loan agreement on November 14, 2022.

The Official Gazette published the decree of the President of Serbia on the promulgation of the Law on Serbian borrowing from NLB Komercijalna Banka to finance the construction of the section of the expressway:   highway E-75 Belgrade – Niš (Požarevac loop) – Požarevac (bypass) – Veliko Gradište – Golubac (Danube) highway).

The nominal interest rate, as written in the law confirming borrowing, is the three-month belibor plus 3.85 percent on an annual basis.

Serbia will repay the principal of the loan in equal three-month installments (28 installments), and after the end of the grace period, which lasts up to 3 years from the entry into force of the contract. The deadline for repayment is ten years from the date of entry into force of the contract.

The “Danube Corridor” construction project is recognized as a construction and reconstruction project of public linear traffic infrastructure of special importance for Serbia.

The route of the state road is divided into three sections, starting at the existing Požarevac interchange on the E-75 highway, Belgrade – Niš section, and ending at the entrance to Golubac.

The total length of the expressway is 67.94 kilometers, according to the Corridor of Serbia website.

The construction of 52 bridges and overpasses, 5 interchanges and 16 roundabouts is planned on the expressway.

The expressway is designed for a calculated speed of 100 kilometers per hour, Nova Ekonomija reports.