EIB to provide EUR 150 million loan for reconstruction of around 540 kilometers of road network in Serbia

The European Investment Bank (EIB Global) has announced that it is providing a EUR 150 million loan to finance the reconstruction and upgrade of around 540 km of local and national roads in Serbia. The project aims to enhance road safety, build resilience to climate change and safeguard the existing network, while lowering environmental impact and travel time.

It is added that, by upgrading Serbia’s core road network closer to EU standards, the project will enhance connectivity and accessibility nationwide, facilitating movement of passengers and freight and fostering sustainable economic growth.

EIB Head of the Regional Hub for the Western Balkans Damien Sorrell said that the project supported smart, sustainable and safe transport, removed bottlenecks, and integrated Serbia’s network into regional and EU corridors.

– These improvements will boost socioeconomic development by increasing accessibility, facilitating trade, and supporting businesses nationwide – said Sorrell.

As said, the project will also introduce targeted measures to improve safety and accessibility for pedestrians and cyclists, particularly on local roads.

It is explained that these include upgraded pedestrian crossings, protective barriers near schools, improved signage, the construction of sidewalks and the development of dedicated cycling lanes.

They point out that the project builds on the EIB Global-financed Road Rehabilitation and Safety initiative, enabling modernization of over 900 km of Serbia’s national road network.

Serbian Finance Minister Sinisa Mali stated that they continued to build and improve transportation infrastructure in the Republic of Serbia.

– In addition to highways and express roads, of which ten are currently under construction, we are also upgrading local road infrastructure, because we want to have safer and more modern roads in all parts of Serbia, in every town. The construction of transport infrastructure, roads and railways has a positive impact on economic activity, and through the efficient implementation of such projects, we are recording faster economic growth – he said.

In addition to this, Mali said, in this way, Serbia also attracts new investors, creates new industrial zones, and the country becomes an even more attractive investment destination.

As part of the region’s Economic and Investment Plan, this project will benefit from a EUR 1.4 million grant under EIB Global’s Economic Resilience Initiative, along with technical assistance from the EU Delegation to support preparation and implementation.

The project has also received support from EIB Advisory through the JASPERS program, which assessed the climate resilience of Serbia’s road network to identify the priority sections for upgrading.

EU Ambassador to Serbia Andreas von Beckerath said that the project provided a significant upgrade to Serbia’s national and local road infrastructure, with a strong focus on unlocking regional socioeconomic potential and addressing the needs of citizens and businesses.

– Supported by EU-funded technical assistance, it delivers safer, more resilient and smarter roads, aligned with European standards, benefiting communities and the economy across the country – he said.

According to Minister of Construction, Transport and Infrastructure Aleksandra Sofronijevic, the project supports the development needs of the Republic of Serbia which, along with constructing new highways and express roads, is also working on the modernization and improvement of the existing road transport infrastructure – essential for the overall development of Serbian regions and local governments.

– The actual need for the rehabilitation of state and local roads ranges from 500 to 1,000 km, and this project will help achieve that goal. A good road network is key to development, as it contributes to increased population mobility, higher employment, faster flows of goods and passengers, greater attractiveness for business investments, and stimulation of tourism development – said Minister Sofronijevic.

It is reminded that the EIB is the long-term lending institution of the European Union owned by its Member States, whereas EIB Global is the EIB Group’s specialized arm devoted to increasing the impact of international partnerships and development finance.

The EIB has been active in Serbia since 1977, providing finance to support key infrastructure projects as well as small and medium enterprises (SMEs), industry, services and local authorities.

Since it began operating in the country, it has enabled over EUR 8 billion of investment in SMEs and upgrading of transport, education, healthcare and utility infrastructure.

Evropska investiciona banka EIB

Ministarstvo finansija Republike Srbije

Delegacija Evropske unije u Republici Srbiji Beograd

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

European Investment Bank

EIB Global

Aleksandra Sofronijević

Andreas von Beckerath

Siniša Mali

Damien Sorrell

road reconstruction