PowerChina signs MOU for Belgrade Metro System Construction Project

Project narrative

On April 24, 2019, Power Construction Company of China (PowerChina) signed a cooperation agreement with the Government of Serbia for the Belgrade Metro System Construction Project. Under the terms of the agreement, Powerchina and Serbia pledged to commence joint work on project documentation, spatial plans, and the model of financing for the project. Further negotiations for this project were held on June 10, 2019. At that time, PowerChina pledged to finish the project in 5 years, although the project was delayed from lack of funding. It is projected that that the first line will cost EUR 4.4 billion. The Government of France agreed to loan Serbia EUR 454 million in 2020, and the Serbian government is contributing EUR 1.4 billion. It is thought that the Chinese government will provide additional funding. In January 2021, PowerChina, France Alstom, and Egis signed an additional Memorandum of Understanding (MOU) for the Belgrade Metro System Construction Project with the Serbian Central Government and the Belgrade Municipal Government. The main contractors are French companies Egis and Alstom, and PowerChina. Egis will provide feasibility studies, designs, and environmental impact assessments. Alstom will provide all of the equipment. PowerChina is responsible for the construction of the system. The 21.1 km line will run from Železnik to Mirijevo and have 21 stops. Construction on the first line began November 22, 2021. The project is expected to be completed by 2028. The project has been criticized for a lack of transparency. The 2019 deals between China and Serbia have been kept secret from the public at the request of the Chinese side, and the existence of Chinese financing is also unavailable. There was no tender process to select the contractors, which has been criticized by transparency advocacy organizations. The project has been accused of posing an environmental risk since it passes through the Danube natural conservation area. Additionally, the project has been described as a "train to nowhere". The line runs along the Sava river, which is a relatively unpopulated part of Belgrade that is being developed as part of an urban renewable project funded by the Government of Serbia and the Government of the United Arab Emirates. As no one lives in this area yet, it is regarded as a benefit to well-connected developers.