Completed Mixed AidData Chinese Aid

China Eximbank provides EUR 134.4 million loan for State Road of 1B Category No. 27 Loznica-Valjevo-Lazarevac, Section Iverak-Lajkovac (Intersection on the Highway E-763 Belgrade-Pozega) Construction Project

$134.3M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Serbia
Country	Serbia
Start Date	Nov 26, 2021
End Date	Dec 10, 2032
Duration	4,032 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92643`

Grant Description

China Eximbank provides EUR 134.4 million loan for State Road of 1B Category No. 27 Loznica-Valjevo-Lazarevac, Section Iverak-Lajkovac (Intersection on the Highway E-763 Belgrade-Pozega) Construction Project On November 26, 2021, China Eximbank and the Government of the Republic of Serbia signed an EUR 134,300,000 loan agreement [No.

BLA20210340034)] for the State Road of 1B Category No. 27 Loznica-Valjevo-Lazarevac, Section Iverak-Lajkovac (Intersection on the Highway E-763 Belgrade-Pozega) Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 15-year maturity

📅 Maturity15 years

⏳ Grace Period4 years

The borrower was expected to use the proceeds of the loan to finance 85% of the cost of a commercial (EPC) contract between China Shandong International Economic and Technical Cooperation Group, Ltd. of Shandong Hi-Speed Group Co.

Ltd., the Government of the Republic of Serbia (represented by the Ministry of Construction, Transport and Infrastructure) and the Public Enterprise “Roads of Serbia”, which was signed on June 10, 2020. The lender made disbursements worth $63,982,000 in 2022. The loan’s (principal) amount outstanding was $0 as of December 31, 2021 and $63,982,000 as of September 31, 2022.

The purpose of the project is to construct a two-way, four lane State Road that passes through Valjevo (Popucke, Lukavac, Divci, Klanica, Loznica and Veselinovac), and Lajkovac (Slovac, Markova Crkva,Ratkovac and Nepricava). The road has a total expected length of 18.3 km, and the maximum allowed speed of 100 km per hour.

There are 20 bridges (including 4 large bridges, and 16 medium and small bridges), with a total length of about 2.5 km (among which, 1.83 km for 4 large bridges, and 0.51 km for 16 medium and small bridges). Construction commenced in June 2020. Serbian President Aleksandar Vucic visited the project site near the town of Klanica on March 23, 2021.

The project was ultimately completed on February 2, 2025. It was originally expected to reach completion by the end of 2022.

📋 Staff Comments

AidData has estimated the all-in interest rate by adding 2.35% to average 6-month EURIBOR in November 2021 (-0.534%).
The China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/s/fgiparvkv6wos1i/China%20Eximbank%20loan%20agreement%20for%20Construction%20of%20the%20State%20Road%20of%201B%20Category%20No.%2027%20Loznica-Valjevo-Lazarevac%2C%20Section%20Iverak-Lajkovac%20%28Intersection%20on%20the%20Highway%20E-763%20Belgrade-Pozega%29.pdf?dl=03. The Serbian project title is Пројекат изградње државног пута 1.Б реда бр. 27 Лозница – Ваљево – Лазаревац, деоница Иверак – Лајковац (веза са аутопутем Е-763 Београд – Пожега.

📚 Sources & References

Bulletin Public Finance
Completed Construction of Iverak-Lajkovac Expressway
Subsection from Iverak to Interchange Divci
CSI wins bid for Serbia's expressway EPC project
Documents in the Outcome List of China-CEEC Summit (88 Items)
Iverak-Lajkovac Fast Road to be Completed by December 2022
JAVNI UVID U NACRT PROSTORNOG PLANA PODRUČJA POSEBNE NAMENE DRŽAVNOG PUTA IB REDA BR. 27 LOZNICA – VALJEVO – LAZAREVAC
DEONICA IVERAK – LAJKOVAC (VEZA SA AUTOPUTEM E-763 BEOGRAD – JUŽNI JADRAN
DEONICA BEOGRAD - POŽEGA)
Loan Agreement Between THE EXPORT-IMPORT BANK OF CHINA as the “Lender” and THE REPUBLIC OF SERBIA REPRESENTED BY THE GOVERNMENT OF THE REPUBLIC OF SERBIA ACTING BY AND THROUGH THE MINISTRY OF FINANCE as the “Borrower” [Agreement No. BLA20210340034]
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 is taking a loan from a Chinese bank to build a road
Serbia: Serbia
China Shandong sign EUR 158mn deal on Iverak-Lajkovac fast track road
Serbian president hails steely friendship with China, pledges deeper cooperation
Survey Works for State Road of IB No. 27 Loznica-Valjevo Lazarevac
Section Iverak-Lajkovac
Valjevo connected with Milos Veliki highway – Final section of Iverak-Lajkovac expressway opened, Закон о потврђивању Споразума о зајму (Зајам за уговарање страног пројекта о изградњи) за Пројекат изградње државног пута 1.Б реда бр. 27 Лозница–Ваљево–Лазаревац, деоница Иверак–Лајковац (веза са аутопутем Е-763 Београд–Пожега), између кинеске Export-Import банке, као Зајмодавца и Републике Србије коју заступа Влада Републике Србије поступајући преко Министарства финансија, као Зајмопримца („Службени гласник РС - Међународни уговори“, бр. 26/2021), ИЗВЕШТАЈ О СТРАТЕШКОЈ ПРОЦЕНИ УТИЦАЈА ПРОСТОРНОГ ПЛАНА ПОДРУЧЈА ПОСЕБНЕ НАМЕНЕ ДРЖАВНОГ ПУТА IБ РЕДА БРОЈ 27, ЛОЗНИЦА – ВАЉЕВО – ЛАЗАРЕВАЦ, ДЕОНИЦА ИВЕРАК – ЛАЈКОВАЦ (ВЕЗА СА АУТОПУТЕМ Е-763 БЕОГРАД – ЈУЖНИ ЈАДРАН, ДЕОНИЦА БЕОГРАД – ПОЖЕГА) НА ЖИВОТНУ СРЕДИНУ, МОМИРОВИЋ: РАДОВИ НАПРЕДУЈУ ПУНОМ ПАРОМ - ЗАХВАЉУЈЕМО СЕ ГРАЂАНИМА НА ПОДРШЦИ, ПРОСТОРНИ ПЛАН ПОДРУЧЈА ПОСЕБНЕ НАМЕНЕ ДРЖАВНОГ ПУТА IБ РЕДА БРОЈ 27, ЛОЗНИЦА – ВАЉЕВО – ЛАЗАРЕВАЦ, ДЕОНИЦА ИВЕРАК – ЛАЈКОВАЦ (ВЕЗА СА АУТОПУТЕМ Е-763 БЕОГРАД – ЈУЖНИ ЈАДРАН, ДЕОНИЦА БЕОГРАД – ПОЖЕГА), РЕПУБЛИКА СРБИЈА МИНИСТАРСТВО ГРАЂЕВИНАРСТВА, САОБРАЋАЈА И ИНФРАСТРУКТУРЕ, СЛУЖБЕНИ ГЛАСНИК РС МЕЂУНАРОДНИ УГОВОРИ
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