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Overview

China Eximbank pledges loan for two highway construction projects

Commitments (Constant USD, 2023)$894,020,832
Commitment Year•2012Country of Activity•SerbiaDirect Recipient Country of Incorporation•SerbiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2012
First repayment (originally scheduled)
Dec 30, 2016
Last repayment (originally scheduled)
Dec 27, 2031

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Serbia

Implementing agencies

Government Agencies

  • Government of Serbia

State-owned companies

  • China Road & Bridge Corporation (CRBC)

Loan desecription

China Eximbank pledges loan for two highway construction projects

Grace period•5 yearsGrant element•49.6805%Interest rate (t₀)•2.5%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On Dec 28, 2012, China Road and Bridge Corporation (CRBC) signed a preliminary agreement with Serbian Ministry of Regional Development and Local Self-Government to build two regional highways in the country. The two projects, a 110-kilometer motorway with six lanes from Pojate to Preljina and a 27-kilometer motorway with four lanes from Novi Sad to Ruma are valued at 642 million Euros (about 850 million U.S. dollars). The works will be financed by the China Exim Bank under very favorable conditions - payment period of 20 years, grace period of five years, and a maximum interest rate of 2.5 percent. It is said that the timeframe for the construction of the Morava corridor is 4 years, and for the Novi Sad-Ruma highway 30 months. It has been envisaged that the Serbian firms will have a 45 percent share in realization of the projects, and the average cost per kilometer will be EUR 4.72 million.