AIR TRAFFIC CONTROL UPGRADE

The project consists of the implementation of a number of investments across the core range of Air Traffic Control (ATC) services provided by SMATSA, the Serbia and Montenegro Air Navigation Service Provider (ANSP), in order to improve the reliability and interoperability of the system, increasing its capacity and improving flight and cost efficiency for airspace users, while maintaining or exceeding required safety levels. The project will be implemented at various existing SMATSA sites throughout Serbia and Montenegro.

The project will contribute to modernise the air navigation systems in Serbia and Montenegro in accordance with the Single European Sky (SES) regulations, a central element of European air transport policy. SES infrastructure is included in the priority Trans-European Transport Network (TEN-T), making the project eligible for Bank financing as a priority project in neighbouring countries (extended TEN-T). The development of air traffic management (ATM) infrastructure is included in the priority entitled "Development of social and economic infrastructure, including transport, energy, environmental infrastructure, information and communication technology" of the External Lending Mandate (ELM). The project will increase SMATSA's compliance with the SES interoperability requirements, contributing to the regional integration among Pre-accession countries and the Union, in line with the general objectives of the ELM. The project is also consistent with the principles of the Government of Serbia's transport strategy, the Transport Community Treaty from 2017 and the Stabilisation and Association Agreement from 2013. The project is therefore eligible for the Bank's financing under Article 309(c) and under the EIB's External Lending Mandate.

The position in respect of national legislation will be confirmed at the appraisal, together with the status and details of possible environmental and social assessments and permitting procedures, public consultations and hence compliance of the project with the EIB environmental and social standards.

The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

This operation is covered by the ELM Guarantee.