Finance model for Novi Sad-Ruma road under consideration

Construction of a tunnel through Fruska Gora and the Novi Sad-Ruma road is now in the phase when the models of funding are being considered, said Provincial Secretary for Interregional Cooperation and Local Self-Government Branislav Bugarski.

He said in a talk with Clement Fourchy, the chief adviser to the European Public Private Partnership Expertise Center, that the possibilities of public-private partnership or concession are under consideration.

Bugarski noted that the costs of tunnel construction were estimated at between 70 and 100 million euros, adding that the construction of the Novi Sad-Ruma road was expected to cost EUR 180 million.

The topic of Thursday's talks was the legal and institutional framework for the implementation of PPP projects in Serbia and Vojvodina, and the two sides also discussed the possibility of funding a feasibility study for the tunnel and road project.

Clement Fourchy said that the European Bank for Reconstruction and Development offered technical assistance in the preparation of the feasibility study and help in both the selection of private partner and the defining of tender procedure and agreements between the parties involved.

Fourchy added that the European Investment Bank also provided help through the JASPER mechanism by offering expert and technical assistance in the preparation of project implementation, stressing that expert assistance can also be obtained through the Western Balkan Investment Framework (WBIF).