CORRIDOR X (E-80) MOTORWAY PHASE I

Construction of a new 36 km section of motorway on Pan-European Corridor X in Serbia between Nis and Ciflik.

The project is expected to reduce travel times, vehicle operating costs, road accidents as well as potentially vehicle emissions, as a result of improved average speeds and infrastructure of a higher quality.

If located within the EU, the project would fall under Annex I of the Environmental Impact Assessment (EIA) Directive 85/337/EEC, amended by directives 97/11/EC and 2003/35/EC thus requiring a full EIA, including public consultations. EIA has been carried out at section level, following the evolution of the design process, and some of the approvals were obtained in accordance with the Serbian Law which is in line with the principles of the EU directive. Subsequent to IFI's involvement in the project financing, a consolidated study for all the 5 sections up to the border with Bulgaria was performed and made available to the public for further consultations.

The project does not cross any nature conservation area and the studies performed show that the impacts on the adjacent conservation areas are not significant if the mitigation measures are respected. The overall social impacts of the project, especially the resettlement and compensation due to land acquisition, have been assessed under a separate study - Resettlement Policy Framework - in parallel with the consolidated EIA.

No vulnerable people have been identified in the area of the project. The Resettlement Action Plans are being prepared for each section as the detailed design is advancing. The permitting processes for each section are in different stages and before first disbursement for each section, the Promoter shall have submitted the relevant approvals, permits and documents. Subject to receipt of the above mentioned confirmations, the project is acceptable for Bank's financing.

The Bank will require the Promoter to ensure that contracts for the implementation of the Project shall be tendered in accordance with the principles of the relevant applicable EU procurement legislation with parallel publication of tender notices in the EU Official Journal.