The World Bank and the Republic of Serbia continue the preparation for the construction of Corridor X

The World Bank and the Republic of Serbia continue the preparation for the construction of Corridor X

The World Bank is to provide a loan for US$388 million (which together with a potential Euro 750 million from the other IFIs) for the construction of 158 kilometers of the highway

Belgrade, February 10, 2009 - The World Bank and the Republic of Serbia have finished a key step in the discussions regarding the financing of the Corridor X and provisionally committed a total of USD388 million. The Bank, together with potential contributions from other international financial institutions (IFIs) and the Hellenic Plan for the Reconstruction of the Balkans, will contribute to the financing of 84 kilometers of the high way between Prosek and Dimitrovgrad on the E-80, and 74 kilometers between Leskovac and Levosoje on the E-75.

A joint IFI team, led by the World Bank is assisting representatives of the newly established Corridor X Company, supported by representatives of the Public Enterprise Roads of Serbia, and the Serbian government, in designing the investment program for these two sections. 

It is expected that negotiations for the World Bank’s contribution will be completed by the end of April 2009. The World Bank Board of Executive Directors will then have to approve the project, and the provisional date for submission is May 19, 2009. Once the Board of Directors approves the project, Serbian Parliament needs to ratify it in order to make it effective, and works to start. The entire program of works on these two sections is expected to take 4-5 years to complete. 

“The World Bank welcomes the opportunity to play a leading role in assisting the Government of the Republic of Serbia in its plans for the upgrading of the road infrastructure on these key corridors. These two sections represent two of the main missing links on the highway network of the region, and the improvement is expected to make a significant contribution to economic development both for the southern part of Serbia, and the country and the region more generally. In addition, in these difficult times, major investment projects of this kind have an important role to play in stimulating domestic demand, and mitigating, at least in part, the worst effects of the unfolding economic crises,” says Martin Humphreys, Program Team Leader, the World Bank.