Contract signed for construction of scrapyards in Leskovac and Jagodina - project worth 12m EUR

Company "Porr", UniCredit Bank Serbia, and International Finance Corporation (IFC), a member of the World Bank Group, signed the contract today (September 8th, 2009) on the loan of 12m EUR for construction of scrapyards in Leskovac and Jagodina.

Total of 6.3m EUR have been provided for construction of the scrapyard in Leskovac, while 5.7m EUR will be invested in Jagodina's dump.

International Finance Corporation will set aside 2.2m EUR for construction of the scrapyard in Leskovac, while UniCredit Bank is going to provide 3.15m EUR for resolving the problem of solid communal waste in that city.

- Construction of regional sanitarian dump is in progress, and it is expected to be opened on October 9th. In addition to municipalities from the Jablanica region, this project also includes municipalities in the region of Pčinj, primarily Vladičin Han and Surdulica – Slobodan Kocić, the Mayor of Leskovac, said at the press conference.

For the scrapyard in Jagodina IFC will provide 35% of total value of the investment, that is, 1.9m EUR, while UniCredit Bank is going to grant the loan of 2.65m EUR, which will cover 50% of the project costs.

Austrian company "Porr" will provide 15% of the funds for these projects.

The Country Manager of company "Porr" for Serbia, Walter Reckerzuegl, said that the scrapyards would be run by the municipalities and "Porr".

- The scrapyards will have the incomes that will be used for repayment of the loan. It is the loan with the repayment period of five years and the grace period of 12 months – said Branislav Radovanović, the Deputy President of the Executive Board of UniCredit Bank, and added that construction of the scrapyards was part of the project worth over 20m EUR, which would also include construction of recycling centers.

According to the words of the CEO of company "Porr", commencement of construction of recycling centers can be expected in about two years.