City authorities of Belgrade should, prior to end of 2006, take first installment of credit for construction of new bridge across Ada Ciganlija

Belgrade will take the first installment of the credit approved by European Bank for Rehabilitation and Development (EBRD), intended for construction of bridge across Ada Ciganlija, prior to end of the year 2006. That loan of total of 69.9m EUR will be repaid by the citizens of the capital of Serbia prior to the year 2021.

The estimates of the city are that the bridge will cost 80 - 90m EUR, although some experts doubt that that budget is big enough for designing magnificiently imagined future symbol of Belgrade.

The city will collect 87.9m EUR for the realization of that project and another 3.6m EUR will be provided from various donations. The credit part of the financial structure for construction of new bridge will come in two parts. EBRD will provide 49.6m EUR, while foreign commercial banks will provide 20m EUR.

The repayment will start on July 21, 2010, and it will be realized in 22 semiannual installments. The interest rate on the approved loan will amount to about 5% on annual basis, but that interest rate will be lowered if the credit rating of Belgrade improves and vice versa.

The price of construction of 1 square meter of a bridge depends on the quality, size, appearance and other characteristics. The range, according to company "Most projekt", is 1,500 to 12,000 EUR per square meter.

The condition for EBRD's loan is that the works that are financed from its money must be allotted on the international open competition, whereas the Mayor of Belgrade, Nenad Bogdanović, says that the priority in the selection of companies that will build access junctions to the new bridge will be given to the companies from Serbia, as well as that the domestic open competition will be announced for that part of the works.