WB to grant loan of 388m USD for construction of 158 km of road on “Corridor 10” – funding details by end of April

The World Bank (WB) has announced today (February 19, 2009) that it will grant the loan of 388m USD for construction of 158 kilometers of road on Corridor 10, while the other international finance organizations should provide 750m EUR for the same purpose.

With possible contribution of other international finance organizations and “Hellenic Plan”, the World Bank will finance construction of 84 kilometers of Prosek-Dimitrovgrad highway and 74 kilometers of Leskovac-Levosoj highway.

That is the principal agreement between the World Bank and Serbia, while the funding details should be defined through negotiations by the end of April.

After that, the Board of Executive Managers of the World Bank should approve the project that should be ratified by Serbian Parliament in order for the works to commence.

According to the announcement, the works on these two highway sections should be completed in four or five years.

- All documents that are necessary for the decision of the Board of Executive Managers should be submitted prior to May 19th", it is stated in the announcement.

The World Bank’s Project Leader, Martin Humphries, said that that financial institution was thankful for the opportunity to get the leading role in helping the Government of Serbia improve road infrastructure on key corridors.

- It is expected that the construction of this road will significantly contribute to economic development of the south of Serbia, as well as the whole country and the region – Humphries added.