Preliminary agreement signed with China's Chandong Hispeed for construction works on Corridor XI - Investment worth USD 333 million

The Serbian Ministry of Construction and Town Planning today signed a preliminary agreement with the representatives of China's Shandong hispeed for the construction of the Obrenovac-Ub and Lajkovac-Ljig sections of Corridor XI, and the value of this investment amounts to USD 333 million, it was announced on the Serbian government's website.

The document was signed by Minister of Construction and Town Planning Velimir Ilic, Liu Cicheng, a representative of aforementioned company, and Koridori Srbije CEO Dmitar Djurovic. On that occasion, Ilic announced that a final agreement would be signed soon, adding the first works could kick off as early as March 2013.

He explained that the construction of these two sections, with the total length of about 50 kilometers, would be financed with the proceeds of a previously approved Chinese loan, with the interest rate of 2.5 percent, adding that the maximum deviation from the projected price would be 10 percent.

According to him, preparations will last for three months, while the time set to complete highway sections from Obrenovac to Ub and from Lajkovac to Ljig is 38 months.