Serbia to enhance road connectivity with €150 million loan from EIB Global

• European Investment Bank (EIB Global) loan will upgrade an estimated 540 km of roads
• The upgrade will improve infrastructure, climate resilience, network availability and road safety, while boosting regional cooperation and development
• The loan will be complemented by a €1.4 million grant provided under the EIB Economic Resilience Initiative and by technical assistance from the European Union to support project preparation and implementation.

The European Investment Bank (EIB Global) is providing a €150 million loan to finance the reconstruction and upgrade of around 540 km of local and national roads in Serbia. The project aims to enhance road safety, build resilience to climate change and safeguard the existing network, while lowering environmental impact and travel time. By upgrading Serbia’s core road network closer to EU standards, the project will enhance connectivity and accessibility nationwide, facilitating movement of passengers and freight and fostering sustainable economic growth.

“The project supports smart, sustainable and safe transport, removes bottlenecks, and integrates Serbia’s network into regional and EU corridors. These improvements will boost socioeconomic development by increasing accessibility, facilitating trade, and supporting businesses nationwide,” said EIB Head of the Regional Hub for the Western Balkans Damien Sorrell.

The project will also introduce targeted measures to improve safety and accessibility for pedestrians and cyclists, particularly on local roads. These include upgraded pedestrian crossings, protective barriers near schools, improved signage, the construction of sidewalks and the development of dedicated cycling lanes. The project builds on the EIB Global-financed Road Rehabilitation and Safety initiative, enabling modernisation of over 900 km of Serbia’s national road network.

“We continue to build and improve transportation infrastructure in the Republic of Serbia. said Serbian First Deputy Prime Minister and Minister of Finance Siniša Mali. “In addition to highways and express roads, of which ten are currently under construction, we are also upgrading local road infrastructure, because we want to have safer and more modern roads in all parts of Serbia, in every town. The construction of transport infrastructure, roads and railways has a positive impact on economic activity, and through the efficient implementation of such projects, we are recording faster economic growth. In this way, we also attract new investors, create new industrial zones, and Serbia becomes an even more attractive investment destination.”.

As part of the region’s Economic and Investment Plan, this project will benefit from a €1.4 million grant under EIB Global’s Economic Resilience Initiative, along with technical assistance from the EU Delegation to support preparation and implementation. The project has also received support from EIB Advisory through the JASPERS programme, which assessed the climate resilience of Serbia’s road network to identify the priority sections for upgrading.

“This project provides a significant upgrade to Serbia’s national and local road infrastructure, with a strong focus on unlocking regional socioeconomic potential and addressing the needs of citizens and businesses”, said EU Ambassador to Serbia Andreas von Beckerath. “Supported by EU-funded technical assistance, it delivers safer, more resilient and smarter roads, aligned with European standards, benefiting communities and the economy across the country.”

According to Minister of Construction, Transport and Infrastructure Aleksandra Sofronijević, the project supports the development needs of the Republic of Serbia which, along with constructing new highways and express roads, is also working on the modernisation and improvement of the existing road transport infrastructure – essential for the overall development of Serbian regions and local governments.

“The actual need for the rehabilitation of state and local roads ranges from 500 to 1 000 km, and this project will help achieve that goal. A good road network is key to development, as it contributes to increased population mobility, higher employment, faster flows of goods and passengers, greater attractiveness for business investments, and stimulation of tourism development,” said Minister Sofronijević.

Background information

About the European Investment Bank and EIB Global

The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to foster EU policy goals. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world. 

About EIB Global in Serbia

The EIB has been active in Serbia since 1977, providing finance to support key infrastructure projects as well as small and medium enterprises (SMEs), industry, services and local authorities. Since it began operating in the country, it has enabled over €8 billion of investment in SMEs and upgrading of transport, education, healthcare and utility infrastructure. For more information regarding the EIB’s projects in Serbia, please visit https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/serbia/index.htm.

For detailed information on the EIB’s activities in the Western Balkans, please visit www.eib.org/en/publications/the-eib-in-the-western-balkans.