SUSTAINABLE IMPROVEMENT OF ROAD NETWORK

Multi-scheme and multi-faceted investment programme aimed at improving the economic efficiency, climate resilience, road safety, environmental protection and social wellbeing with interventions focusing on rehabilitation, reconstruction and upgrade of local and national roads in Serbia.

The project concerns a multi-scheme and multi-faceted investment programme in the form of an up to €150m framework loan to the Republic of Serbia, acting as borrower and represented by the Ministry of Finance. The objective of the project is to improve the road network in Serbia, with interventions focusing on rehabilitation, reconstruction and upgrade of the infrastructure. There is no new road construction involved. The promoter is the Public Enterprise "Roads of Serbia", a public enterprise and well-known EIB counterpart, with a similar EIB financed project currently under implementation, having a focus on road safety measures on national roads across the country ("Road Rehabilitation and Safety" (2012-0367)), for which EIB approved in 2023 an increase of its financing contribution. The increased EIB participation is supported by technical assistance to perform road safety impact assessment, with outcomes expected to be replicated in this new EIB operation proposal. Interventions will take into account climate adaptation, climate resilience, road safety improvement, safeguard of existing assets, protection of the environment and improved connectivity.

The works will be located on existing roads without intended change to their right of way and lane configuration but might nonetheless lead to the addition of sidewalks or paths for cyclists, the adjustment of curve radius, and other relatively minor alignment rectifications, where deemed necessary. No Environmental and Social Impact Assessment (ESIA) is envisaged for any schemes under the Project as the works involve rehabilitation, reconstruction and minor upgrade works on existing roads. It is expected that there will be only limited negative environmental impacts, for which the proposed mitigation measures will be reviewed at appraisal. In case a scheme nonetheless falls under Annex II of the Directive, it will be subject to screening. The individual schemes would generally fall outside the scope of the corresponding EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU, if located within the EU. In Serbia, the Competent Authority for environmental enforcement is the Serbian Ministry of Environment (MoE). The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate adaptation, pollution prevention and control.

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

Under EFSD+ Guarantee