• Ћирилица
  • Latinica
  • English
  • Romani

You are here

Mihajlovic: In 2019, a new investment cycle worth five billion euros will be launched

The new investment cycle in Serbia's infrastructure will begin in 2019 and will cost five billion euros, said the Deputy Prime Minister of Serbia and the Minister of Construction, Transport and Infrastructure, prof. Zorana Mihajlovic PhD.


In an interview with Beta agency, she said that the new investment cycle, which should help the country's economic growth, includes projects related to the construction of highways, railway corridors and water transport, and that the planned money will be allocated over the next three to four years.


"The construction of Preljina-Požega section of Corridor 11, worth 450 million euros, is surely starting. We also expect the construction of the Moravian Corridor worth 800 million euros, as well as the reconstruction of the Nis-Dimitrovgrad railroad worth 264 million euros, modernization of Novi Sad-Subotica railway, worth 924 million euros, as well as sections of the highway Nis-Plocnik road in the length of 38 kilometers, worth 220 million euros only in the first phase, to start" Mihajlovic said and added that for investment in water transport 200 million euros are planned.


Minister of construction pointed out that in 2018, more kilometers of highways were completed than in previous years in Serbia.


"In 2018, 103 kilometers of highway were completed, completely asphalted, some sections were released for traffic, and some were not due to the critical points on which it is still being worked on such as section Ub-Lajkovac, and the tunnel that is running between Ljig and Preljina, on Corridor 10 and Corridor 11, " said Ms. Deputy Prime Minister.


Speaking about the completion of Corridor 10, Mihajlović said that the work is under way on the part that passes through Grdelica Gorge, that the contractors and the supervisory companies do not rush, because, she pointed out, the most important is the safety of passengers, but she expects that this section as well part of the eastern fork of the Corridor towards the border with Bulgaria, will be completed by the middle of this year.


She added that the Moravian Corridor is ready for project-technical documentation, an agreement and memorandum was signed with American company - "Behtel" for the construction of mentioned road, estimated at 800 million euros, for which part of the funds will be provided from the budget for 2019.


Mihajlovic explained that no later than mid-2019, the method of financing this construction route should be determined.


 "The moment when the financial contract is signed, works could start very soon. It would be realistic to finish the financial contract in the first half of the year, and in the second half of the year to start the works, which should last two and half to three years," said the Minister.


According to Deputy Prime Minister, the documentation for the Fruska Gora Corridor is also ready, and in 2019, a completed financial model for the project can be expected.

She also confirmed that a highway, about 20 kilometers long, will be built from Ruma to Sabac, and a 50 km high speed road from Sabac to Loznica will be built.


"Azerbaijani company Azvirt will work on this project." The negotiations with the Ministry of Finance on financial conditions have almost come to terms, and the guarantee is provided in the budget for 2019, which means that works can start in the second half of the year, "Mihajlovic said.

She also said that the project of modernization of Belgrade-Budapest railway is being implemented intensively.


"It is based on two sections, Belgrade-Stara Pazova and Stara Pazova-Novi Sad, a part is realized with Chinese, and a part with the Russian railways," Mihajlovic said.

She reminded that in 2018 a commercial contract was signed for the most valuable part of the project, between Novi Sad and Subotica, which costs 924 million euros.

"I believe that in 2019, we will have a commercial contract and will start working on that section," the minister said.


Deputy Prime Minister and Minister also announced the reconstruction and electrification of Nis-Dimitrovgrad railways that will begin in March 2019, along with the roundabout around Nis, and the works will last at least two and a half years.

"A financial contract has been signed with the European Investment Bank. The project is worth 264 million euros and it is financed partly from EU donations, and partially from the budget," Mihajlovic said.

As Minister specified, it is an important part of the railroad linking Serbia and Bulgaria, it was the only railroad on Corridor 10 that was not electrified, which was a problem for cargo traffic.


 "In 2018, we rehabilitated 220 kilometers of railroads from our own funds. We have sections of regional railroads that go 110 kilometers per hour," she said.

Mihajlovic recalled that a part of Belgrade-Bar rail tracks’ was reconstructed, Resnik to Valjevo section 77 kilometers long, and there are plans to complete the documentation for the route from Valjevo to the border with Montenegro, in 2019, for which the funds in the budget are defined.