The project
The project concerns (i) the rehabilitation of the Gazela Bridge on the E70/E75 Highway crossing the Serbian capital Belgrade, and forming part of Pan European Corridor 10. It also includes (ii) the rehabilitation and upgrading of access roads with a total length of 24.2 km and (iii) the reconstruction/ upgrading of the R251 ring road between Lestane and Zeleznik located in the south of Belgrade with a total length of 17.3 km.
This EUR 77 million project is mainly financed by the EIB, EBRD, the City of Belgrade and the Borrower (the public company Roads of Serbia). The EIB contributes with a loan of EUR 33 million.
Benefits for Serbia
The transport sector is of critical importance to Serbia. The country's geographical position makes it a key transit country for passengers and goods, and good transportation is an important aspect for allowing trade, industry and tourism to prosper.
The Gazela Bridge project is located on the Pan-European Transport Corridor 10 (Salzburg-Ljubljana-Zagreb-Beograd-Nis-Skopje-Veles-Thesaloniki), as well as on the European "E" roads E70 and E75. Additionally, it is included in the South Eastern Axis identified among the five major axes to connect the European Union (EU) with its neighbouring countries in the Report from the High Level Group, chaired by former Member of the Commission Loyola de Palacio in November 2005.
The project will guarantee the use of the bridge under safe conditions and will improve traffic flows on the access roads. Additionally, it will improve transit traffic through Belgrade and public transport within the city.
A social aspect: Roma communities living under the Gazela Bridge
The project required the relocation of people living in an informal settlement under the Gazela Bridge. The vast majority of these Project Affected Persons (PAP) belong to the Roma people/population.
According to a 2008 report by Council of Europe Commissioner for Human Rights, "the situation of the Roma population in Serbia is very precarious. They are subjected to prejudice, systematic discrimination, marginalisation and exclusion". The Serbian government has indicated that it recognises the significance of the problems associated with the Roma population and has taken significant and serious commitments and measures to address these problems.
Since the start of project appraisal in 2006, EIB and EBRD have been addressing with the relevant Serbian authorities the resettlement issue and the preparation of an acceptable Resettlement Action Plan (RAP) for the PAPs living under the bridge.
EIB's involvement
The financing contract of the EIB loan for the Gazela Bridge Rehabilitation Project was signed in July 2007. One of the conditions precedent to the first disbursement in the finance contract was that a realistic and implementable RAP be prepared to the satisfaction of the Bank.
EIB requirements on involuntary resettlement include the following objectives which should be outlined in a resettlement action plan and implemented accordingly:
- Avoid or, at least minimise, project-induced displacement whenever feasible by exploring alternative project designs;
- Mitigate negative social impacts from asset loss and/or restrictions of land use, (a) through the provision of appropriate compensation and/or livelihood opportunities regardless of the legality of existing land tenure arrangements, and (b) ensuring that resettlement measures are implemented with meaningful consultation and the informed participation of the affected people;
- Assist displaced persons to improve their living standards and improve, or at least to restore, their former livelihoods.
- Additional information on the EIB's social safeguards is available from the Bank's Statement of Environmental Principles and Standards and the EIB Environmental and Social Practices Handbook.
The physical move of the PAP living under the bridge took place on 31 August 2009: 114 Belgrade residents (Component A) were resettled to 5 new settlements in Belgrade into temporary housing units, and 53 families of non-Belgrade residents (Component B) were moved back to their municipalities of origin, mostly to their existing homes. Serbian authorities have prepared over time several proposals for handling the resettlement of PAPs, however prior to the resettlement; EIB and EBRD had not officially approved final versions of the proposed RAPs.
Nonetheless, since the resettlement took place EIB and EBRD have monitored the implementation process of RAP components in close cooperation with the City of Belgrade and the Ministry of Labour and Social Policy. Continuous monitoring shows that, although progress is being made on improving access to health and education services, providing documentations for PAPs and increasing access to social welfare benefits, gaps remain on the provision of sustainable housing and the restoration of livelihoods.
New contractual conditions
In response to the request of the Serbian authorities and in consideration of the emergency situation and public safety concerns linked to the rapid deterioration of the physical condition of the Gazela Bridge, as well as the related socio-economic impacts, the EIB's Board of Directors approved, under new contractual conditions, the first disbursement of up to EUR 10 million for the project on 11 March, 2010. The corresponding Amendment Agreement was signed on 20 May 2010 and included action plans for Component A and B to which the City of Belgrade and Ministry of Labour and Social Policy will have to comply by 31 December 2010 (see below).
Subsequent disbursements will be conditional upon the implementation of the resettlement as agreed between the Serbian Authorities and the EIB, with a further contractual condition to repay the loan if the specific requirements described in the table below are not met by year end.
The Serbian authorities have formally confirmed their commitment to fulfill their responsibilities towards the resettled families and to continue working with the EIB and the EBRD to achieve this goal.
Agreed Actions and Current Status
The resettlement of the Gazela Bridge PAP represents to date the first such resettlement undertaken in Serbia whereby an attempt was made to apply international standards and solve complex issues related to citizenship and associated legal issues. These actions have in some cases led to an improved access to basic infrastructure, accommodation and social services, including access to education. In this context, the involvement of the EIB and the EBRD has been of paramount importance.
The tables below provide a list of agreed actions to be taken to improve the resettlement of PAP and their current status. The status will be regularly updated.
Component A: the City of Belgrade
|
Action Required |
Deadline |
Status (January 10, 2011) |
|
|
1. |
Audit of all Gazela resettlement sites in Belgrade to: (a) assess housing conditions against the commitments made in the RAP; (b) identify any inadequate housing conditions and improvements that need to be made (c) identify any improvements needed for access to infrastructure. |
March 31, 2010 |
Completed |
|
2. |
Based on the audit, set out an action plan. To be agreed with EIB. |
In accord with set timetable. |
Completed |
|
3. |
Subject to EIB/EBRD mobilization of funding: (a) Develop terms of reference (TORs) with the assistance from the Banks for the independent Project Manager and advisors to implement and monitor the RAP. (b) Appointment of the Independent Project Manager and advisors to implement and monitor the RAP. |
April 30, 2010 October 30, 2010 |
(a) Completed
(b) Completed |
|
4. |
Subject to EIB/EBRD mobilization of funding: (a) Develop terms of reference (TORs) with the assistance from the Banks for an independent consultant to assist with the preparation of proposals and planning for developing a recycling centre in Belgrade to provide employment opportunities for interested PAPs. (b) City to appoint consultants as described in (a). |
June 30, 2010 December 31, 2010 |
(a) Completed (*) Further actions postponed as IFIs are assessing viability (b) See (*) above |
|
5. |
Develop a plan for the provision of social housing for interested PAPs: (a) Number of social housing units planned for next 2-3 years; (b) support planned by the City to PAPs to apply for social housing; (c) planned monitoring by the City on PAPs social housing provision; (d) timeline projections for social housing provision for PAPs. |
March 31, 2010 |
Completed |
Component B: the Ministry of Labour and Social Affairs
|
Action Required |
Deadline |
Status (January 11, 2011) |
|
|
1. |
Audit on housing conditions in Vranje, Bojnik, and Leskovac. |
March 31, 2010 |
Completed |
|
2. |
A priority action to improve the housing in Vranje and Bojnik so as to achieve at least minimum standards as defined, for example, by the municipality of Leskovac. |
April 30, 2010 |
Substantially Completed |
|
3. |
Provide infrastructure to the PAPs residences (access roads, water, and for electricity) |
May 31, 2010 (for the provision of electricity the timeline depends on the completion of the legalization process of the properties) |
Substantially Completed |
|
4. |
Subject to EIB/EBRD mobilization of funding: (a) Develop terms of reference (TORs) with the assistance from the Banks for the independent Project Manager and advisors to support the Ministry and the municipalities in implementing monitoring the RAP. (b) Appointment of the Independent Project Manager and advisors to implement and monitor the RAP. |
March 31, 2010 August 31, 2010 |
(a) Completed
(b) Ongoing |
|
5. |
Planning for employment opportunities: (a) Together with the Ministry of Infrastructure identify employment opportunities (one job per family on the construction of road Corridor X); (b) Identify other employment opportunities at enterprises and other places of employment; (c) Identify suitable training programs for the PAPs; (d) Planned monitoring by the Ministry of employment and training opportunities identified; employment and training opportunities utilized by PAPs. |
June 30, 2010 |
Substantially Completed |
It is estimated that implementation of the RAPs would carry on until end 2012.