The financial agreement with the European Investment Bank (EIB) for the construction of the E-80 Niš-Merdare highway worth EUR 100 million

September 12 2019 | Belgrade

The financial agreement with the European Investment Bank (EIB) for the construction of the E-80 Niš-Merdare highway worth EUR 100 million

The financial agreement for the construction of the E-80 Niš-Merdare highway worth EUR 100 million has been signed today by the Minister of Construction, Transport and Infrastructure, Zorana Mihajlović, and the Director of Public Sector for Italy, Malta, Slovenia, Croatia and the Western Balkans of the European Investment Bank (EIB), Miguel Morgado. The agreement on the WBFI Investment Grant worth EUR 40.6 million has also been signed at the Serbian Government today. Apart from Minister Mihajlović and EIB representative Morgado, the grant agreement was signed by the Minister of European Integration in the Government of the Republic of Serbia, Jadranka Joksimović, and Assistant Director of the “Corridors of Serbia”, Dušan Purić.

Minister of European Integration Jadranka Joksimović has said that today’s signing of the agreement is very important, and that today is an important day, since there has been a lot of discussion with partners from the EU and the region, as well as considerable debate in the public about the importance of this project. “Investing in infrastructure is never a thrown away or wasted money; it is to the benefit of the citizens, and we are here to work in their interest and on improving the quality of life”, she has said. “By doing this, we also show that we are an active part of what constitutes the trans-European network, and all this will contribute to better connectivity in the region and better business activity”, the Minister has said.

Joksimović has stressed that one of the leading initiatives is infrastructural integration, and that it provides concrete contribution to the overall economic and social progress of the society. “Everyone in the region will benefit from this project and Serbia most of all, as no project has been thoughtlessly planned”, she has said.

Minister Mihajlović has announced that construction of the first section of the highway, from Niš to Pločnik, will begin in the third quarter of the next year. “We have worked for three years on this project. Today, we have signed two important agreements that represent an important step towards the beginning of construction, although there have been many criticisms and questions as to whether there is interest in the construction of this highway”, Mihajlović has said at the media conference. She has stressed that the Niš-Merdare highway is not only important for the development of the economy and the integration of the district, but that it is also important from a political point of view, as it shows Serbia's interest and desire to reach a solution through compromise.

Mihajlović has stated that this highway will provide Serbia with another point of access to the sea. According to her, it is one of six highways to be built in Serbia during 2019 and 2020. “It may sound impossible, but it is surely possible now when Serbia has a stable economy and is politically stable, that is, it has stable finances, owing to which it can now start investing in infrastructure projects”, she has said. Asked about the project financing and whether there will be enough money, she has said that it will be done step by step, and that an amount missing up to EUR 275 million is to be provided from an EBRD loan. “Next year, we will sign an agreement with the EBRD in order to secure financing for the first section Niš-Pločnik,” Mihajlović has said.

She has added that it will take two and a half years to complete the section, and that the matter will certainly be discussed with financiers in the coming period. The Minister has stressed that securing financing is the least of concerns, and that there is much greater concern about whether there will be enough companies and people to work on such large projects. She has added that there can be no development of any state unless we connect with each other.

EIB representative Morgado has said that the key contribution of the European Commission in this project is to connect the region, adding that the EU has supported Serbia for many years and is working to improve the region's rail, road and water transport. He has said that the signing of those agreements is an example of fruitful cooperation between national institutions and the European Commission, and has announced that they will continue to support Serbia given the announced investment program.

“Today, we have had meetings with representatives of the Serbian Government to discuss a potential group of projects that we could possibly support so as to contribute to Serbia’s growth and prosperity”, Morgado has said.

European Commissioner for Transport Violeta Bulc has said that the construction of the Niš-Merdare highway is important for connectivity in the region, adding that connectivity means peace and hope. "In addition to this highway, also called the “Highway of Peace”, we also plan to have this section connected by water transport”, Bulc has said.

The route of the future highway will go from Merošina (Niš), along the Toplica district passing Prokuplje, Beloljin, Pločnik, Kuršumlija to Merdare, in a total length of 77 kilometers. The first section to be built is from Niš to Pločnik, which is 33 kilometers long, and the value of that section, with all the costs of expropriation and design of the entire section, is estimated at around EUR 250 million. The estimated value of the second section of this highway from Pločnik to Merdare, 44 kilometers long, is around EUR 570 million. The estimated value of the entire section of the highway is approximately EUR 920 million. The importance of the highway lies in the fact that it will connect about half a million citizens living in the Pirot, Nišava and Toplica districts, and near Niš – it will connect to Corridor 10 and allow Serbia access to the Albanian port of Durres on the Adriatic Sea. The Niš-Merdare-Pristina highway will be part of the EU’s indicative-basic transport network. The investor of the construction of the highway is “Corridors of Serbia”.

Source: Tanjug