Serbia intends to borrow up to 35 billion dinars (approximately EUR 298 million) from NLB Komercijalna banka to help finance the construction of the Belgrade-Zrenjanin-Novi Sad highway. This borrowing is outlined in a draft law based on a long-term investment credit agreement signed on May 9, 2025.
Under the agreement, the Government of Serbia, represented by the Ministry of Construction, Transport and Infrastructure as the loan beneficiary, Koridori Srbije as the investor, and China Shandong International Economic and Technical Cooperation Group as the contractor, will oversee the project’s implementation. The highway project falls under the Framework Commercial Contract signed on November 10, 2023.
The loan includes a repayment term of 11 years with a four-year grace period. Repayments will be made quarterly—on January 5, April 5, July 5, and October 5 each year. The interest rate is based on the three-month BELIBOR plus a fixed margin of 2.50% annually. Additional costs include a one-time loan processing fee of 0.30% and an annual 0.30% fee on undrawn funds.
Loan funds must be withdrawn within three years from the contract’s effective date, although this period may be extended with written approval from the bank. Early repayment is allowed if considered favorable for public debt management, subject to a 1.50% early repayment fee.
The funds will be used exclusively for Phase 1 of the highway project, specifically:
- Subsection 1: Part of the stretch from km 0+000 to km 7+100, excluding certain finishing works such as asphalt layers, traffic signals, lighting, and landscaping;
- Subsection 4: Part of the stretch from km 52+000 to km 67+662.46, also excluding key infrastructure such as the bridge over the Begej River and full works on the Ečka interchange;
- Preparation of planning and project documentation (Conceptual Solution and Conceptual Design) for the entire scope of works outlined in the commercial contract.
