Active Mixed AidData Chinese Aid

China Eximbank provides $608.3 million preferential buyer’s credit for Fast Road Novi Sad- Ruma (‘Fruškogorski Corridor’) Construction Project

$608.4K USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Serbia
Country	Serbia
Start Date	Jan 26, 2022
End Date	Jul 28, 2029
Duration	2,740 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67570`

Grant Description

China Eximbank provides $608.3 million preferential buyer’s credit for Fast Road Novi Sad- Ruma (‘Fruškogorski Corridor’) Construction Project On January 24, 2019, China Road and Bridge Corporation submitted an offer proposal for the implementation of the Fast Road Novi Sad-Ruma (‘Fruškogorski Corridor’) Construction Project to the Government of the Republic of Serbia.

Then, on September 24, 2019, the Government of the Republic of Serbia, Public Enterprise 'Roads of Serbia' and China Road and Bridge Corporation signed a protocol on cooperation regarding the Fast Road Novi Sad-Ruma (‘Fruškogorski Corridor’) Construction Project.

On January 26, 2022, China Eximbank and the Government of the Republic of Serbia signed a $608,384,610 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC (2021) NO.23 TOTAL NO. (528)] for the Fast Road Novi Sad-Ruma (‘Fruškogorski Corridor’) Construction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate3%

The borrower is expected to use the proceeds of the loan (PBC) to finance 85% of the cost of a $715,746,600 commercial contract (number 48-00-7081/2020-3) between the Government of Republic of Serbia’s Ministry of Construction, Transport and Infrastructure, Public Enterprise “Roads of Serbia”, Koridori Srbije d.o.o, and China Road and Bridge Corporation (CRBC), which was signed on October 6, 2020.

The lender made disbursements worth $121,677,000 between 2019 and 2022. The loan’s (principal) amount outstanding was $121,677,000 as of September 31, 2022.

The purpose of the project is to upgrade the 47.7 kilometer Novi Sad-Ruma section of Serbia's IB-21 state road (expressway).

The project includes a new bridge over the Danube and the tunnel Iriški venac through Fruška gora, in the length of 3.5 km.

The road will connect three municipalities, Novi Sad, Irig and Ruma and is connected with the existing state road – border of Romania, the motorway and the expressway under construction, Ruma – Šabac – Loznica.

Vojvodina will be connected with the western and northwestern part of Serbia as well as the regional centres – Novi Sad, Ruma, Šabac and Loznica. It represents an indirect link between Serbia and Bosnia and Herzegovina, Croatia and Romania.

It will contribute to the improvement and relief of traffic in urban areas on the bypasses around Novi Sad, Irig and Ruma and, which is especially important, the relocation of transit traffic from the area of the National Park “Fruška gora“ by building the tunnel Iriški venac. CRBC is the contractor responsible for project implementation.

The project was originally scheduled to commence in May 2021.

📋 Staff Comments

The China Eximbank loan (PBC) agreement can be accessed in its entirety via https://www.dropbox.com/s/7f5wg1mt4hz9yzu/China%20Eximbank%20PBC%20Agreement%20for%20the%20Construction%20of%20the%20Fast%20Road%20Novi%20Sad-%20Ruma%20%28%E2%80%9CFru%C5%A1kogorski%20Corridor%E2%80%9D%29%20Project%20.pdf?dl=0.
The Serbian project title is Пројекат изградње брзе саобраћајнице Нови Сад – Рума („Фрушкогорски коридор”).
In Serbia, CRBC acts through a local subsidiary known as China Road and Bridge Corporation Serbia Ogranak Beograd-Savski Venac.

📚 Sources & References

Agreement signed to build Fruska Gora Corridor
Bulletin Public Finance
China Road to begin €450m Serbian motorway next month
China's CRBC Awarded Third Roadbuilding Contract In Serbia
China's infrastructure investments in Serbia reach 5.5 bln euro - Serbian govt
China’s CRBC eyes new projects in Serbia
China’s CRBC eyes new projects in Serbia
Chinese company to build fast road in Serbia
CONTRACT FOR CONSTRUCTION OF FRUŠKA GORA CORRIDOR SIGNED
CONTRACT FOR CONSTRUCTION OF FRUŠKA GORA CORRIDOR SIGNED
CRBC to start work on $504.2m Serbian motorway project
CRBC to start €450m Serbian road project
National Bank of Serbia 2022 Annual Report on Activities and Results
New projects with Chinese company CRBC in Serbia
PREFERENTIAL BUYER CREDIT LOAN AGREEMENT ON CONSTRUCTION OF THE FAST ROAD NOVI SAD- RUMA ('FRUŠKOGORSKI CORRIDOR') PROJECT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SERBIA REPRESENTED BY THE MINISTRY OF FINANCE AS BORROWER AND THE EXPORT-IMPORT BANK OF CHINA AS LENDER
Protocol on Cooperation
Protocol on Cooperation on Project of Design and Execution of Works on Construction of the Fast Road
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 approves 606 mln euro road construction deal with China's CRBC
Serbia approves 606 mln euro road construction deal with China's CRBC
Serbia Country Commercial Guide
Serbia discusses irrigation tunnel with China's CRBC
Serbia halfway through to completing works on country's longest tunnel
Serbia signs 2.5 bln euro road infrastructure deals in China
Serbia to launch construction of Fruskogorski Corridor road project in 1Q21
Serbia to sign commercial deal on Fruskogorski Corridor project by end-2019
Serbia wants billions in foreign loans to invest in infrastructure: minister
Serbia
China's CRBC sign cooperation deal on Fruskogorski Corridor project
Serbia: Government
Chinese CRBC sign EUR 606mn deal on Fruska Gora Corridor
Serbia: Overview of Finalized Projects
Serbia: Works on Fruskogorski Corridor to begin next year
Serbian government borrows $608 mln USD from Chinese to build Fruška Gora corridor
Witnessed by the President and the Prime Minister- Serbia's Novi Sad-Ruma Project Held Commencement Ceremony, О ПОТВРЂИВАЊУ УГОВОРА О ЗАЈМУ ЗА КРЕДИТ ЗА ПОВЛАШЋЕНОГ КУПЦА ЗА ПРОЈЕКАТ ИЗГРАДЊЕ БРЗЕ САОБРАЋАЈНИЦЕ НОВИ САД – РУМА („ФРУШКОГОРСКИ КОРИДОР”) ИЗМЕЂУ ВЛАДЕ РЕПУБЛИКЕ СРБИЈЕ КОЈУ ПРЕДСТАВЉА МИНИСТАРСТВО ФИНАНСИЈА КАО ЗАЈМОПРИМЦА И КИНЕСКЕ EXPORT-IMPORT БАНКЕ КАО ЗАЈМОДАВЦА, ПРЕДЛОГ ЗАКОНА, СЛУЖБЕНИ ГЛАСНИК РС МЕЂУНАРОДНИ УГОВОРИ
中企签约塞尔维亚快速路项目
中国路桥签署塞尔维亚诺维萨德多瑙河四桥及连接道路项目
中国进出口银行与塞尔维亚财政部签署公路项目融资协议
塞尔维亚建设、交通和基础设施部部长视察诺维萨德-鲁马快速路项目
塞尔维亚建设、交通和基础设施部部长视察诺维萨德跨多瑙河四桥项目
塞尔维亚建设、交通和基础设施部部长视察诺维萨德鲁马快速路项目
驻塞尔维亚大使陈波出席多瑙走廊快速路项目签约仪式 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.