Obstruction blocking EUR 420mn loans

International loans worth EUR 420mn sent for ratification by the last govt. are on hold owing to the parliamentary blockage. While the opposition discusses Radovan Karadzic, and the ruling parties do nothing to get the new parliament working, reconstruction of the Gazela bridge, repairs to roads, construction and modernization of four hospitals in Serbia, and the development of Bor, one of the country’s poorest municipalities, have all been put on the backburner. Obstruction blocking EUR 420mn loans MPs are still waiting to debate World Bank loans dating back to July of last year, and it is not out of the question that the institution could withhold the loan for building Corridor 10. The World Bank alone approved loans for Serbia in 2007 worth USD 240mn, but MPs have been unable to ratify them. A spokesman for the World Bank in Serbia, Vesna Kostic, told B92 that if nothing else, it was unusual for projects authorized by the World Bank board not to be ratified by parliament, even though the country’s development depended on them. “Obviously the fact that these loans are still to be ratified calls into question some of the World Bank’s future activities. As you know, the government is very interested in the World Bank both financing and even running investments in infrastructure. How can we discuss future projects when these old projects are taking so long to be implemented,“ said Kostic. Also in the queue is reconstruction of the Gazela bridge in Belgrade, over which 150,000 vehicles pass on a daily basis. A loan of EUR 33mn approved for the project by the European Investment Bank has been in parliamentary procedure for just over a year, says Serbian Roads Director Zoran Drobnjak. “Had it been done earlier, we could have begun in April this year. At stake are the Gazela bridge, Batajnica–Dobanovci, 100 bridges throughout Serbia, EUR 33mn worth of loans, a bypass from Bubanj Potok to Zeleznik, a bypass through Belgrade from Bubanj Potok to Surcin. As soon as ratification is taken care of, we’ll call a tender and the contractors will be able to start work within a month,“ said Drobnjak. Also on hold are EUR 80mn for clinical centers in Belgrade, Novi Sad, Nis and Kragujevac, as well as the modernization of drainage systems in those institutions. Bor, meanwhile, is waiting on MPs to approve EUR 24mn earmarked for regional development. The Gazela bridge (B92)

Obstruction blocking EUR 420mn loans

MPs are still waiting to debate World Bank loans dating back to July of last year, and it is not out of the question that the institution could withhold the loan for building Corridor 10.

The World Bank alone approved loans for Serbia in 2007 worth USD 240mn, but MPs have been unable to ratify them. A spokesman for the World Bank in Serbia, Vesna Kostić, told B92 that if nothing else, it was unusual for projects authorized by the World Bank board not to be ratified by parliament, even though the country’s development depended on them.

“Obviously the fact that these loans are still to be ratified calls into question some of the World Bank’s future activities. As you know, the government is very interested in the World Bank both financing and even running investments in infrastructure. How can we discuss future projects when these old projects are taking so long to be implemented,“ said Kostić.

Also in the queue is reconstruction of the Gazela bridge in Belgrade, over which 150,000 vehicles pass on a daily basis. A loan of EUR 33mn approved for the project by the European Investment Bank has been in parliamentary procedure for just over a year, says Serbian Roads Director Zoran Drobnjak.

“Had it been done earlier, we could have begun in April this year. At stake are the Gazela bridge, Batajnica–Dobanovci, 100 bridges throughout Serbia, EUR 33mn worth of loans, a bypass from Bubanj Potok to Železnik, a bypass through Belgrade from Bubanj Potok to Surčin. As soon as ratification is taken care of, we’ll call a tender and the contractors will be able to start work within a month,“ said Drobnjak.

Also on hold are EUR 80mn for clinical centers in Belgrade, Novi Sad, Niš and Kragujevac, as well as the modernization of drainage systems in those institutions. Bor, meanwhile, is waiting on MPs to approve EUR 24mn earmarked for regional development.