China Eximbank provides $217.4 million preferential buyer’s credit for Zemun-Borča Bridge and the Accompanying Roads Project

Project narrative

On July 14, 2010, China Eximbank and the Government of the Republic of Serbia signed a preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK NO. PBC (2010) 20 Total 127] worth $217,400,000 for the Zemun-Borča Bridge and the Accompanying Roads Project. The loan (PBC) carried the following borrowing terms: an interest rate of 3%, a 0% default (penalty) interest rate, a maturity of 18 years, a grace period of 3 years, a 0.75% commitment fee, and a 1% management fee. The proceeds of the loan were to be used by the borrower to finance 85% of the cost of a $255 million commercial contract between the Ministry for National Investment Plan of the Republic of Serbia, the City of Belgrade, and China Road and Bridge Corporation (CRBC), which was signed on April 15, 2010. The borrower made principal repayments worth approximately $16,055,000 in 2019, $16,055,000 in 2020, $16,055,000 in 2021, and $16,056,000 in 2022. The loan’s (principal) amount outstanding was $168,583,000 as of December 31, 2018, $152,528,000 as of December 31, 2019, $136,472,000 as of December 31, 2020, $120,417,000 as of December 31, 2021, and $104,361,000 as of September 31, 2022. The purpose of the project was to (a) construct a bridge over the Danube River in the city of Belgrade that is 1,482 meters in length, 29.1 meters in width, and 22.8 meters in height; and (b) construct 21.6 kilometers of supporting (“related auxiliary”) roads. The expected duration of the construction period for the main bridge was 36 months, and the expected duration of the construction period for the supporting roads was 24 months. CRBC was the contractor responsible for implementation. However, up to 45% of the subcontractor jobs and materials used were Serbian. On July 14, 2010, Wu Bangguo, then-Chairman of the Standing Committee of the National People's Congress, attended the bridge foundation stone laying ceremony. The project commenced on October 27, 2011. The main bridge was closed on January 22, 2014 and the main structure of the bridge was connected on July 14, 2014. The bridge was renamed the Pupin Bridge on October 24, 2014 and it was officially inaugurated and opened to traffic on December 18, 2014 by the Prime Minister of the People's Republic of China, Li Keqiang. Upon completion, the travel time from Borča municipality to Zemun municipality was reduced to 10 minutes from 1 hour. The bridge, which connects to the northern ring road of Belgrade, also alleviated traffic congestion in the city of Belgrade.