EBRD lends EUR 85 million to GSP Beograd to buy 400 buses

(Thomas Maier, Dragan Djilas and Mileta Radojevic)

Representatives of the City of Belgrade, the European Bank for Reconstruction and Development (EBRD) and the City Transportation Company (GSP) Beograd signed Tuesday a mandate letter for the procurement of 400 new buses worth EUR 85 million, the first hundred of which will be delivered in December.

Djilas, who signed the mandate letter on behalf of the city, said that EUR 85 million was a big investment, adding that he was happy that the EBRD trusted people running the city and GSP Beograd, although that company had been going through some tough times.

Djilas expects a request for proposal to procure aforementioned 400 buses to be released in June.

He added that these 400 buses and 25 new articulated buses delivered by Ikarbus and presented Tuesday at GSP would guarantee a higher level of transportation services in 2012.

The mayor also noted that these procurements were a result of difficult decisions, one of which is the introduction of the Bus Plus ticket system, and thanked the citizens for accepting that system.

- The aim of the city management is to ensure that anyone who pays a ticket gets a quality transportation service - Djilas said.

Although the European Bank for Reconstruction and Development has so far concluded several agreements with the City of Belgrade, this is its first direct agreement signed with GSP Beograd. The value of all previous agreements between the EBRD and the City of Belgrade totals about EUR 225 million, excluding aforementioned EUR 85 million for the procurement of buses for GSP Beograd.

Mr. Maier added that the EBRD took pride in being a part of the new Belgrade modernization project.

GSP Beograd Director Mileta Radojevic recalled that the current authorities had procured 83 trolleybuses, 30 new trams, 10 new LPG buses and 25 new Ikarbus buses over the previous two years.