The European Investment Bank (EIB) is providing EUR 144 million for road transport in Serbia and Montenegro.
The finance documentation has been signed today in Luxembourg for Serbia and Montenegro by Mr. Pedrag IVANOVIC, Minister of International Economic Relations of Serbia and Montenegro and Mr. Igor LUKSIC, Minister of Finance of Montenegro. For EIB signed Mr. Gerlando Genuardi, Vice-President.
The 25-year loan supports the modernization of the Motorway Belgrade-Novi Sad, as well as the construction of access roads to the Sozina Tunnel, situated on the road connection Bar-Podgorica-Belgrade. The funding is split EUR 120 million to the Republic of Serbia, and EUR 24 million to the Republic of Montenegro.
Situated on the Pan European Corridor X linking Serbia with Hungary, the 65 Km new motorway Belgrade-Novi Sad is a key infrastructure for Serbia and Montenegro, as well as for the entire Balkan region. In Montenegro, the Sozina Tunnel will improve a key link between the capital Podgorica and the Adriatic coast, including the Port of Bar. Construction works on both sections are already well advanced and the immediate availability of complementary long term financing provided by EIB would be extremely helpful for a swift implementation of these important projects.
At the signature ceremony, Vice-President Genuardi stated: This loan is our fifth operation in support of the transport sector modernisation in Serbia and Montenegro since the start of our operations in the country after the hostilities, in 2002. In the recent past we contributed with EUR 250 million to the urgent rehabilitation of basic infrastructure in all transport sub-sectors, including roads, rail, ports (Bar), and airports (Belgrade, and earlier this year Podgorica and Tivat). Our financing in the transport sector will contribute to the country's economic development and successful integration in Europe.
A dedicated Project Implementation Unit (PIU), financed with EU grant resources, will continue to operate in the country to help local managerial teams to implement the investment plans in accordance to European best practice. Alongside the grant funding of EUR 2 million by the European Agency for Reconstruction (EAR) there is a EUR 72 million loan from the EBRD. This makes the project a further example of the excellent cooperation, which exists between EIB, the EAR and the EBRD in the Balkan region.
The EIB is progressively increasing its long-term lending in the Balkan countries. Looking forward to a closer integration of the region with the EU, the Bank is now focusing on investments to improve human capital, municipal development and to stimulate the private sector, particularly SMEs. These investments will complement the traditional financial support given to upgrade and reconstruct infrastructure. In the late 90s, the EIB was invited to renew operations in the Western Balkan region, as part of the EUR 9.2 billion financial Mandate for the Central and Eastern European Countries for the years 2000-2007.