Active Mixed AidData Chinese Aid

China Eximbank provides $445 million preferential buyer’s credit for Preljina-Pozega Section of the Highway E-763 Construction Project

$445M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Serbian Ministry of Finance
Country	Serbia
Start Date	Apr 25, 2019
End Date	Feb 15, 2028
Duration	3,218 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67009`

Grant Description

China Eximbank provides $445 million preferential buyer’s credit for Preljina-Pozega Section of the Highway E-763 Construction Project On September 6, 2018, the Government of the Republic of Serbia approved a $445 million preferential buyer's credit (loan) application to China Eximbank for the Preljina-Pozega Section of the Highway E-763 Construction Project.

Then, on April 25, 2019, China Eximbank and the Government of the Republic of Serbia signed a $445 million preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2019) 2 TOTAL NO. (486)] for the Preljina-Pozega Section of the Highway E-763 Construction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate3%

The proceeds of the PBC were to be used by the borrower to finance 85% of the cost of a $523,530,000 commercial contract (#401-00-829/2017-01) between the Government of the Republic of Serbia, Public Enterprise "Roads of Serbia”, and China Communications Construction Company Ltd., which was signed on November 27, 2017.

The lender made disbursements worth $89,000,000 in 2019, $5,840,000 in 2020, and $63,040,000 in 2021.

The loan’s (principal) amount outstanding was $89,000,000 as of December 31, 2019, $94,840,000 as of December 31, 2020, $157,880,000 as of December 31, 2021, and $250,542,000 as of September 31, 2022.

The purpose of the project is to construct a 31 kilometer two-way four-lane highway, including 3 tunnels, 35 bridges, and 3 interchanges. The design speed of the highway is 120 km/h.

The 31 km Preljina-Pozega section of the E763 highway is divided into three sections: (1) from Preljina to Prijevor along Cemernica River and in the small part of the Western Morava (up to 8.3 km); (2) paved roads from Prijevora to Lucani (15.51 km), 20 bridges (longer than 3 km), and the construction of Laz tunnel (1,750 meters); (3) from Lucani to Pozega (7 km), three bridges, a tunnel (2,040 m), a loop in Lucani, and a bridge over the river Bjelica.

Nearly a third of the route on the future road segment from Preljina to Pozega is made up of planned bridges and tunnels.

The larger E-763 highway will stretch for more than 250 kilometers from Belgrade to the country’s border with Montenegro. China Communications Construction Company Ltd. is the EPC contractor responsible for implementation. Construction began on May 17, 2019 and the project was expected to reach completion within 3-years (May 17, 2022).

The President of Serbia conducted an on-site project inspection on June 12, 2020.

📋 Staff Comments

This project is also known as the Construction of the Preljina-Pozega Section of the Belgrade-South Adriatic-Corridor XI Project, the Construction of the Preljina-Pozega Section of the Highway E-763 Project, and the Construction of the Highway E-763, Preljina-Pozega Section Project. The Chinese project title is E763高速普雷利纳—波热加段 or E763高速公路项目等由. The Serbian project title is Projekat izgradnje autoputa E-763, deonica Preljina−Požega.
This $445 million 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 PBC (loan) agreement [CHINA EXIMBANK PBC NO. (2019) 2 TOTAL NO. (486)] can be accessed in its entirety via https://www.documentcloud.org/documents/20488788-ser_2019_477.
The November 27, 2017 commercial contract can be accessed in its entirety via https://www.dropbox.com/s/5y3irzwl9g252it/Ugovor_E-763_Preljina_-_Pozega%20Commercial%20Contract.pdf?dl=0.

📚 Sources & References

'Службени гласник РС - Међународни уговори'
Annual Report 2019
Bulletin Public Finance
China Eximbank loan agreement for Construction of Highway E-763
China's infrastructure investments in Serbia reach 5.5 bln euro - Serbian govt
Contracts signed for the most important infrastructure projects in Serbia
CRBC Signs the MOU on E763 Highway and China Industrial Park Project in Serbia
Design and Execution of Works on Construction of the Highway E-763
DRS Official Commitments from China through 2020
Fifth Sitting of the First Regular Session of the National Assembly of the Republic of Serbia in 2019
Fifth Sitting of the First Regular Session of the National Assembly of the Republic of Serbia in 2019
Izgradnja autoputa E-763
Monthly Report PDA - July, 2019
New Breakthrough of the E763 Highway Project
Open Ceremony of Požega - Duga Poljana Section E763 Highway
Open Ceremony of Požega - Duga Poljana Section E763 Highway
Part of Serbian E-763 highway to be opened in June, says president
PREFERENTIAL BUYER CREDIT LOAN AGREEMENT
PREFERENTIAL BUYER CREDIT LOAN AGREEMENT
PRELJINA – POZEGA
Preljina_-_Pozega Commercial Contract
Public Finance Bulletin, 2019
Public Finance Bulletin, 2020
Public Finance Bulletin, 2021
Public Finance Bulletin, 2022
Public Finance Bulletin, 2023
Public Finance Bulletin, 2024
Public Finance Bulletin
December 2018
Public Finance Bulletin
December 2019
Public Finance Bulletin
December 2020
Public Finance Bulletin
December 2021
Public Finance Bulletin
January 2018
Public Finance Bulletin
September 2022
Serbia agrees of motorway project financing scheme with China's CCCC
Serbia sets new laws for infrastructure
Serbia to complete new highway in partnership with China
Serbia to complete new highway in partnership with China
Serbia to launch Preljina-Pozega motorway section in 2022 - PM
Serbia: Agreement with China to be signed for Corridor 11 project
Serbia: Large Infrastructure Projects Delivered
Serbian Minister of Construction
Transport and Infrastructure Inspects E763 Highway Project
Serbian President Aleksandar Vučić inspects the E763 Highway Project
Serbian president inspects highway construction by Chinese company
Serbian President Vucic and Chinese Ambassador to Serbia Chen Bo attended the groundbreaking ceremony of the Prelina-Porega section of the expressway
Serbian President Vučić attended the groundbreaking ceremony of the Porega-Dugapoja section of the E763 motorway
Serbian President Vučić Inspects the E763 Highway Project
Serbia’s E-763: How China is constructing a high-speed road without a license
Surcin-Obrenovac Section of E763 Highway Obtained Final Certificate
The 'Gates' of Western Serbia are opening soon, Министар Мали потписао два уговора са Ексим банком – за изградњу аутопута Прељина-Пожега и деоницу брзе пруге Нови Сад-Суботица
塞尔维亚总统武契奇出席E763高速普雷利纳—波热加段开工仪式
驻塞尔维亚大使陈波陪同武契奇总统视察E763高速公路普雷利纳—波热加段建设工地 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.