State to borrow nearly EUR 300 million for Belgrade-Zrenjanin-Novi Sad highway project

For the needs of the financing of the project of the construction of the Belgrade-Zrenjanin-Novi Sad highway, the state of Serbia will take out a loan in the amount of up to RSD 35 billion, that is, around EUR 298 million, from NLB Komercijalna banka, as stated in the bill on the borrowing of the Republic of Serbia from this bank.

As clarified in the bill, the borrowing is to be done based on the agreement on a long-term investment loan between this bank and the Republic of Serbia which was signed on May 9 this year. The agreement on the long-term investment loan envisages that the Government of Serbia, which is represented by the Ministry of Construction, Transport and Infrastructure, as the Financier (the beneficiary of the loan), Koridori Srbije doo, Belgrade, as the investor, and China Shandong International Economic and Technical Cooperation Group, Ltd. of Shandong Hi-Speed Group Co. Ltd Shandong Hi-Speed Group Mansion, as the contractor, in accordance with the agreement on the design and execution of works on the construction of this highway, be in charge of the execution and implementation of the project.

The agreement envisages a three-month loan repayment - on January 5, April 5, July 5 and October 5 each year, as well as a maturity date of 11 years, including a grace period of four years, with a principal amount repayment in equal three-month installments. Also envisaged is the fee for the processing of the request and the realization of the loan, which will be 0.30% of the total amount of the loan and paid as a single payment. The fee for the unwithdrawn funds will be 0.30% annually, and the interest rate will be a three-month BELIBOR + a fixed margin of 2.50% annually.

As emphasized, the loan funds can be withdrawn for three years from the date of the coming into effect of the contract, and the bank can explicitly extend the period of the availability of the loan in a written form based on a previously submitted written request.

As reminded in the bill, the framework commercial agreement on the design and execution of works on the construction of the Belgrade-Zrenjanin-Novi Sad highway was signed on November 10, 2023.

D. A.

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

NLB Komercijalna banka AD Beograd

Koridori Srbije d.o.o. Beograd

China Shandong International Economic & Technical Cooperation Group Ltd. ogranak Beograd

China Shandong International Economic and Technical Cooperation Group Ltd

construction of Belgrade Zrenjanin Novi Sad highway