Corridor 10 loan talks in May

The Serbian government and the World Bank will next month start negotiations on the conditions for a Corridor 10 highway loan.

Izvor: B92

Saturday, 18.04.2009.

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The Serbian government and the World Bank will next month start negotiations on the conditions for a Corridor 10 highway loan. The fixed part of the interest rate is at 1.45 percent, while the flexible portion will depend on the price of money in the European financial market, which changes each six months. Corridor 10 loan talks in May The 20-year loan could be extended by another five with a grace period. Serbia is currently the only country which does not have a highway built along its section of the pan-European Corridor 10. World Bank Director for Southeast Europe Jane Armitage says that the economic crisis gripping the world can be expected to end in 2010, while unemployment figures will go up in the next six months. Corridor 10 works would help create new jobs. "It's a very important investment for the state and in the future it will help the economy develop, by attracting new financial investments, and connecting Serbia to the countries of the EU," said Armitage. "Corridor 10 is a very important investment today, considering the financial crisis, as it will create new jobs and bring new projects to Serbian companies and factories," she was quoted as saying. The possibilities linked to the construction of the highway include establishment of up to 100 new small companies, and an overall income of EUR 2.5bn. The draft budget review which the government sent to parliament earlier this week confirmed the that funds allocated to the project would not change, regardless of the source. "When the Serbian government in September 2008 asked us to finance the project, we worked hard, produced a project, appraised the costs, and in a record period of time," Armitage stated. "Such calculations are usually done for over a year, in this case our goal is to finish all the necessary things in two to three weeks. Our team is already in the field and is finalizing the calculations, and then at the beginning of May we will negotiate the loan conditions." "We will invest USD 388mn in this project, which is the biggest loan ever approved to Serbia," she added. Serbia hopes to finish works on Corridor 10 by 2011, bearing in mind competing Corridor 4, constructed by Bulgaria and Romania. Otherwise, vehicle transit through Serbia would be reduced, and with it the money collected for the state budget.

Corridor 10 loan talks in May

The 20-year loan could be extended by another five with a grace period. Serbia is currently the only country which does not have a highway built along its section of the pan-European Corridor 10.

World Bank Director for Southeast Europe Jane Armitage says that the economic crisis gripping the world can be expected to end in 2010, while unemployment figures will go up in the next six months.

Corridor 10 works would help create new jobs.

"It's a very important investment for the state and in the future it will help the economy develop, by attracting new financial investments, and connecting Serbia to the countries of the EU," said Armitage.

"Corridor 10 is a very important investment today, considering the financial crisis, as it will create new jobs and bring new projects to Serbian companies and factories," she was quoted as saying.

The possibilities linked to the construction of the highway include establishment of up to 100 new small companies, and an overall income of EUR 2.5bn.

The draft budget review which the government sent to parliament earlier this week confirmed the that funds allocated to the project would not change, regardless of the source.

"When the Serbian government in September 2008 asked us to finance the project, we worked hard, produced a project, appraised the costs, and in a record period of time," Armitage stated.

"Such calculations are usually done for over a year, in this case our goal is to finish all the necessary things in two to three weeks. Our team is already in the field and is finalizing the calculations, and then at the beginning of May we will negotiate the loan conditions."

"We will invest USD 388mn in this project, which is the biggest loan ever approved to Serbia," she added.

Serbia hopes to finish works on Corridor 10 by 2011, bearing in mind competing Corridor 4, constructed by Bulgaria and Romania.

Otherwise, vehicle transit through Serbia would be reduced, and with it the money collected for the state budget.

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