Russian loan for the development of railways extended till 2021 – Agreement on USD 700 million so far

The Russian loan is being realized without any problems and USD 700 million has been agreed on so far, of a total of 800 million for the development of railways. The loan availability period will be extended by four years, i.e. until the end of 2021, due to the construction of complex structures at the Stara Pazova-Novi Sad railway, Tanjug has learned at the Ministry of Construction, Transport and Infrastructure.

The Public Debt Administration at the Ministry of Finance has informed Tanjug that USD 162.1 million was withdrawn from the approved loan before June 30.

The state secretary at the Ministry of Construction, Transport and Infrastructure, Miodrag Poledica, says that the Russian loan covers five projects, of which four are already being realized, whereas an annex was signed on July 15 on one phase of the works on the fifth project – the Stara Pazova-Novi Sad railway.

– The fifth project has been split into two phases due to construction and financial works. All five projects are being realized, USD 700 million has been agreed on, and the better part of the project has been completed – Poledica said.

Three northern sections on Corridor X have been completed, as has been the construction of the second Belgrade-Pancevo railway, and more than half of a total of 27 new Russian diesel-engine trains have been delivered, he stated. The Russian loan covers the modernization and construction of the Pancevo railway, six sections on Corridor X, reconstruction of the Bar railway from Resnik to Valjevo, the Stara Pazova-Novi Sad railway and the delivery of 27 new diesel-engine trains from Russia.

Poledica says that the initial availability period was December 31, 2017, but that, due to the complexity of construction works on the Stara Pazova-Novi Sad railway, the infrastructure on that section, tunnels and bridges, will take at least four years to build.

– We need to extend the Russian loan, since the Russian contractor, the Russian railways company RZD International, cannot complete the works by the end of 2017, which is why we've initiated an official procedure with the Ministry of Finance, which has in turn initiated a procedure with the Ministry of Finance of Russia for the official extension of the Russian loan by at least four more years, that is, until the end of 2021 – Poledica said.

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

Uprava za javni dug

Ministarstvo finansija Republike Srbije

RZD International Beograd

RŽD International

Russian loan

Ministry of Construction Transport and Infrastructure

Stara Pazova Novi Sad railway

Public Debt Administration

Ministry of Finance

Miodrag Poledica

Pancevo railway

Corridor X

Resnik Valjevo railway

Ministry of Finance of Russia

RZD International