Active Development AidData Chinese Aid

China Eximbank provides RMB 1.436 billion government concessional loan for Belgrade Bypass Project (Section B — Lots 4, 5, and 6)

¥1.44M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Serbia
Country	Serbia
Start Date	Sep 18, 2018
End Date	Jan 22, 2027
Duration	3,048 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66985`

Grant Description

China Eximbank provides RMB 1.436 billion government concessional loan for Belgrade Bypass Project (Section B — Lots 4, 5, and 6) On September 18, 2018, the Chinese Government and the Government of the Republic of Serbia signed a preferential loan framework agreement for the Belgrade Bypass Project (Section B — Lots 4, 5, and 6).

On the same day, China Eximbank and the Government of the Republic of Serbia signed an RMB 1,436,850,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2018) 27 TOTAL NO. (669)] for the Belgrade Bypass Project (Section B — Lots 4, 5, and 6).

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2.5%

The proceeds of the loan (GCL) were to be used by the borrower to finance the cost of an EUR 227,729,321 (RMB 1,690,411,973) commercial (EPC) contract between the Government of the Republic of Serbia, Public Enterprise “Roads of Serbia”, and Power Construction Corporation of China, Ltd. (PowerChina), which was signed on November 5, 2016 (ID#401-00-01051/2016-01) and amended on September 21, 2017 (ID#401-00-01051/2016-01).

The lender made disbursements worth $39,204,000 in 2019, $65,235,000 in 2020, and $73,161,000 in 2021.

The loan’s (principal) amount outstanding was $39,204,000 as of December 31, 2019, $104,439,000 as of December 31, 2020, $177,600,000 as of December 31, 2021, and $182,574,000 as of September 31, 2022. The purpose of the project is to construct a 22.6 km stretch of highway on Section B of the Belgrade Bypass.

The stretch runs from Otruznica bridge to Junction Bubanj Potok. 13.1 km of the stretch is a semi-profile highway (three lanes) and 9.5 km is a full-profile highway (six lanes). The Belgrade Bypass will be a closed highway with a design speed of 120 km per hour. Upon completion, it is expected to greatly ease existing traffic pressures in Belgrade.

Power Construction Corporation of China, Ltd. is the general (EPC) contractor responsible for implementation. Azvirt — an Azeri civil engineering company — is also involved in implementation as a subcontractor. The ceremonial start of project implementation took place on July 24, 2018.

As of June 2020, Power Construction Corporation of China, Ltd. had completed the breakthrough of the left tube of the Strazevica tunnel that lies on the 22.6 km-long Ostruznica-Bubanj Potok section of the Belgrade Bypass Road.

Power Construction Corporation of China, Ltd. also announced in June 2020 that the section from Ostruznica to Bubanj Potok would be finished in 2022. In May 2021, Lot 4 (Section 4) of Section B was completed and opened for operation. Aleksandar Vucic, President of Serbia and Chen Bo, Chinese Ambassador to Serbia attended the opening ceremony.

Lot 5 (Section 5) of Section B was completed and opened for operation on June 15, 2022. Construction of Lot 6 (Section 6) of Section B was ongoing as of 2022.

The successful opening of Lot 4 (Section 4) with Lot 5 (Section 5) and Lot 6 (Section 6) will eventually form a complete highway network around the capital city of Belgrade. An opening ceremony was held for the completion for the project on April 29, 2021.

📋 Staff Comments

This project is also known as the Belgrade Bypass Project – Construction of Highway E70/E75, Section: Bridge Over Sava River Near Ostruznica – Bubanj Potok (Sectors 4, 5 and 6). The Serbian project title is Пројекат изградње обилазнице око Београда на аутопуту Е70/Е75, деоница: мост преко реке Саве код Остружнице - Бубањ Поток (Сектори 4, 5 и 6). The Chinese project title is 贝尔格莱德绕城公路项目.
This RMB 1,436,850,000 China Eximbank loan is not recorded the China’s Overseas Development Finance Dataset, which Boston University's Global Development Policy Center published in December 2020.
The China Eximbank GCL (loan) agreement [CHINA EXIMBANK GCL NO. (2018) 27 TOTAL NO. (669)] can be accessed in its entirety via https://www.dropbox.com/s/tdy56cyqdx94z2i/China%20Eximbank%20loan%20for%20Belgrade%20Bypass%20Project.docx?dl=0.
In April 2020, the Government Serbia signed a memorandum of understanding with Power Construction Corporation of China, Ltd. and Azvirt for the construction of the Bubanj Potok-Pancevo stretch of Belgrade bypass road, known as Sector C.

📚 Sources & References

ADMINISTRATIVE ACTION STATE RECORD OF DECISION
Belgrade Bypass
Belgrade bypass
Belgrade Bypass (Sector 4) in Serbia Financed by China Eximbank Opened for Operation
Belgrade Bypass - General Project
Building permit issued for Belgrade bypass route section between Strazevica and Bubanj Potok
Bulletin Public Finance
China Eximbank loan for Belgrade Bypass Project.docx
CONSTRUCTION OF SECTOR B BYPASS AROUND BELGRADE
DRS Official Commitments from China through 2020
Feasibility Study for Belgrade City Road By-Pass
Government Concessional Loan Agreement
Memorandum of Understanding
MIHAJLOVIC WITH POWER CHINA ABOUT BELGRADE BYPASS AND THE CONSTRUCTION OF THE METRO
Monthly Report PDA - January, 2019
Monthly Report: Public Debt Stock and Structure
Negotiations on the construction of the last section of the bypass around Belgrade
Powerchina to complete construction of Belgrade bypass road tunnel in 2021
Powerchina to complete construction of Belgrade bypass road tunnel in 2021
Powerchina to intensify works on Belgrade bypass road project to make up for delays - govt
Powerchina
Azvirt to complete Serbian bridge construction in May
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December 2018
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December 2020
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December 2021
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January 2018
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September 2022
Section B5 of Belgrade Bypass in Serbia Financed by China Eximbank Opens to Traffic
Serbia : Work on Bypass Around Belgrade Needs to Start as Soon as Possible
Serbia eyes launch of Belgrade bypass in 2022
Serbia issues all building permits for Belgrade bypass road's Sector B
Serbia to borrow 320 bln dinars (2.7 bln euro) from Chinese banks in 2021
Serbia: Overview of Finalized Projects
Serbia: PROJECTS December 2017
Serbian bypass project ahead of schedule
Serbian minister tours POWERCHINA's highway project
Standard Summary Project Fiche – IPA centralised programmes (Regional / Horizontal programmes ; centralised National programmes)
The Export-Import Bank and the Serbian Ministry of Finance signed a loan agreement for the Belgrade Ring Road Project
The Export-Import Bank of China Signed the Loan Agreement on Belgrade Bypass Project with the Ministry of Finance of Serbia
ZAKON: O POTVRĐIVANJU UGOVORA O DRŽAVNOM KONCESIONALNOM ZAJMU ZA PROJEKAT IZGRADNJE OBILAZNICE OKO BEOGRADA NA AUTOPUTU E70/E75
DEONICA: MOST PREKO REKE SAVE KOD OSTRUŽNICE - BUBANJ POTOK (SEKTORI 4, 5 I 6) IZMEĐU VLADE REPUBLIKE SRBIJE
KOJU PREDSTAVLJA MINISTARSTVO FINANSIJA
KAO ZAJMOPRIMCA I KINESKE EXPORT - IMPORT BANKE
KAO ZAJMODAVCA, З А К О Н О ПОТВРЂИВАЊУ ОКВИРНОГ СПОРАЗУМА ИЗМЕЂУ ВЛАДЕ РЕПУБЛИКЕ СРБИЈЕ И ВЛАДЕ НАРОДНЕ РЕПУБЛИКЕ КИНЕ О ОБЕЗБЕЂЕЊУ РЕПУБЛИЦИ СРБИЈИ КОНЦЕСИОНАЛНОГ ЗАЈМА НАРОДНЕ РЕПУБЛИКЕ КИНЕ, ИНФОРМАЦИЈА О РАДУ јул-септембар 2018. године, ИНФОРМАЦИЈА О РАДУ октобар-децембар 2018. године, О ПОТВРЂИВАЊУ УГОВОРА О ДРЖАВНОМ КОНЦЕСИОНАЛНОМ ЗАЈМУ ЗА ПРОЈЕКАТ ИЗГРАДЊЕ ОБИЛАЗНИЦЕ ОКО БЕОГРАДА НА АУТОПУТУ Е70/Е75, ДЕОНИЦА: МОСТ ПРЕКО РЕКЕ САВЕ КОД ОСТРУЖНИЦЕ - БУБАЊ ПОТОК (СЕКТОРИ 4, 5 И 6) ИЗМЕЂУ ВЛАДЕ РЕПУБЛИКЕ СРБИЈЕ, КОЈУ ПРЕДСТАВЉА МИНИСТАРСТВО ФИНАНСИЈА, КАО ЗАЈМОПРИМЦА И КИНЕСКЕ EXPORT - IMPORT БАНКЕ, КАО ЗАЈМОДАВЦА, Обилазница око Београда - опште информације
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