State to borrow EUR 213 million for construction of tunnel near Faculty of Economics in Belgrade

The Government of Serbia has adopted the bill which approves the borrowing of RSD 24,898,000,000 (around EUR 213 million) for the financing of the construction of a tunnel connection between Karadjordjeva Street and the Danube Slope in Belgrade.

This long-term investment credit will be realized through cooperation with Banka Postanska stedionica, and the loan agreement envisages a repayment period of ten years, with a grace period of four years. The interest rate is set as a three-month BELIBOR increased by a fixed margin of 2.5%, and the repayment will be done on a three-month basis, through 24 equal instalments.

The project encompasses the construction of a tunnel which would connect Karadjordjeva Street with the Danube Slope, including the accompanying access routes, park areas and additional infrastructure. The entrance portal to the tunnel will be located near the Faculty of Economics, whereas the tunnel should have its exit in Despota Stefana Blvd, near the police station.

The agreement on the execution of the works has already been signed with Power Construction Corporation of China Ltd, which will take upon itself the planning, execution and completion of the works.

Let us remind that the mayor of Belgrade, Aleksandar Sapic, announced earlier that the construction of the new bridge on the Sava and one tube of the tunnel near the Faculty of Economics would last three years.

I. Z.

Vlada Republike Srbije

Banka Poštanska štedionica a.d. Beograd

Power Construction Corporation of China Limited Ogranak Beograd

Government of Serbia

Banka Poštanska štedionica

Power Construction Corporation of China

Despota Stefana Blvd

new bridge on the Sava

new Sava bridge

construction of new Sava bridge

tunnel from Sava Slope to Danube Slope

tunnel from Karađorđeva Street to Danube Slope

tunnel from Karađorđeva Street to Despota Stefana Blvd

tunnel near Faculty of Economics in Belgrade

entrance portal to tunnel near Faculty of Economics in Belgrade

construction of tunnel from Sava Slope to Danube Slope

Despota Stefana Blvd Belgrade

Karađorđeva Steeet