Serbia
Infrastructure
In the period 2004-2005 Serbia was a beneficiary of a large amount of financial resources for road, railway, airport and energy infrastructure reconstruction. If completed in due time, the still ongoing rehabilitation projects will lead to a major upgrade of part of SCG's transport and energy network by the year 2009. Principal sponsors of the projects are the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the World Bank (WB).
The European Roads Project envisages the completion of the doubling to 2x2 motorway standard of 65km of the E75 road, which represents a key section of the Pan-European Corridor X connecting Serbia and Hungary, from Belgrade to Novi Sad, as well as the construction of a tunnel and 5 km of new access roads on the Bar-Podgorica-Belgrade highway. The total cost of the project is valued at EUR 333 mln., with the EIB disbursing EUR 209 mln., and the EBRD providing up to EUR 72.5 mln. in the form of a sovereign guaranteed loan. Construction works were launched in January of 2004, and are expected to last until the end of 2007.
The Transport Rehabilitation Project is aimed at improving the effectiveness of the policies of the Serbian Road Directorate (SRD) for road maintenance and rehabilitation through the introduction of new contracting arrangements with the private sector. The project, comprising of two parallelly implemented components, envisages financing the strengthening of the SRD institutional capacity (USD 7.85 mln.), and the enhancement of road maintenance, rehabilitation, and safety, including targeting priority rehabilitation needs (USD 53.40 mln.). The total cost of the project is valued at USD 61.25 mln., provided by the WB. It was launched in July 2004, and will be running until the beginning of the year 2009.
The Montenegro Regional Road Rehabilitation Project is estimated at EUR 15.3 mln., provided through an EBRD sovereign guaranteed loan (EUR 11.5 mln.), by the government of the Republic of Montenegro (EUR 2.6 mln.), and through other sources (EUR 1.25 mln.). The project was launched in 2005, with construction works expected to be completed by the end of 2007.
The Yugoslav Railways Reconstruction Project (Serbia and Montenegro) is aimed at maintaining the capacity and increase its operating efficiency of ZTP railway, which operates all railway services in Serbia, including ensuring traffic along Pan European Corridor X between Central Europe and Greece, Bulgaria and Turkey. The project's implementation amounts to EUR 170 mln., provided by the EBRD (EUR 57 mln.), EIB (EUR 85 mln.), CIDA (EUR 2 mln.), GRANT (EUR 7.5 mln.), and local financing (EUR 18.5 mln.). The was launched during the second half of 2002. At present 75% of the construction works have been completed.
The Air Traffic Control (Serbia and Montenegro) Project is designed to renew the whole air navigation infrastructure of Serbia and Montenegro. Its total cost is projected at EUR112 mln., made available by EBRD (EUR 33.5 mln.) and EIB (EUR 34 mln.), with the financing scheme with both institutions having been adopted in the first half of 2005, as well as by local institutions ( EUR 44.5 mln.). The project started in the second half of 2005 and is expected to last 4 years.
The Emergency Power Sector Reconstruction Project finances emergency rehabilitation and upgrades to priority thermal generation plants, transmission substations, and metering equipment in SCG, thus ensuring the modernisation of the country's energy sector. Upon its finalisation, it will guarantee an overall increase of internal generating capacity and a reduction of SCG's reliance on electricity imports. The project's total cost is estimated at EUR 135.9 mln., allocated by EBRD and EIB loans (EUR 70 mln.), the European Agency for Reconstruction (EUR 28 mln.), and the WB. The project was launched in March of 2002, with its implementation expected to last at least 4.5 years.
The Power II project Serbia and Montenegro envisages the modernisation of mine management and control of the existing Tamnava West mining field in order to increase lignite production. At a total cost of EUR 100 mln., provided by the EBRD ( EUR 50 mln.), the EIB (EUR 22 mln.), SECO (Swiss Government) (EUR 10 mln.), and EPS (Elektroprivreda Srbije) (EUR 15 mln.), the project will ensure the upgrade of the power system control and communications. It was launched in 2003, and is still ongoing.
The Serbia Energy Efficiency Project aims to improve energy efficiency in buildings in order to make heating more affordable. An important secondary objective is to reduce the local and global environmental impact of the use of dirty fuels for heating buildings in Serbia. The project is valued at USD 25 mln., and is sponsored by the WB. It was launched in June 2004, and is ongoing.