Serbia spent over $1.25 billion on the modernization and reconstruction of the Novi Sad–Subotica–state border railway section in partnership with Chinese companies CCCC and CRIC, despite an alternative EU-funded project costing around €330 million. By abandoning the EU grant project, Serbia also forfeited approximately €60 million in non-reimbursable aid.
Preliminary EU studies in 2012 and 2013 showed the modernization cost at about €330 million, but Serbia chose a more expensive path with Chinese partners, signing the contract under then-Minister Zorana Mihajlović. The Chinese project allows trains to run at speeds up to 200 km/h, compared to the EU plan’s 160 km/h, but in practice, Serbian trains do not reach these higher speeds, and the time savings amount to just eight minutes.
The decision to forego EU financial support, favorable loans, and adopt more expensive technical standards raises questions about transparency and accountability. Details of the contracts with Chinese firms remain partially undisclosed, and concerns have been voiced regarding the lack of public access to documentation and economic justification.
According to the commercial agreement, the initial contract value was approximately $1.16 billion, covering construction, procurement, and renovation of the Novi Sad station and railway subdivisions. Several annexes, including Annex 4 valued at $52.3 million and others totaling at least $86.9 million, have increased the overall cost. Full details on some annexes remain unknown.
Critics ask who decided to abandon EU funds and whether Serbia’s Prosecutor’s Office will investigate the potential damages caused by these decisions to the Serbian state and its citizens.
