Government to take a loan from Bank of China to implement Clean Serbia project

The Serbian government plans to borrow 183.9 million euros from the Bank of China to continue implementing the Clean Serbia project, which includes the construction of sewage systems and wastewater treatment plants across Serbia.

The contractor for this project is China Road and Bridge Corporation (CRBC), and in the second phase, which will be financed by this loan, a 450-kilometer-long sewage network and nine wastewater treatment plants will be built in nine municipalities in Serbia (Inđija, Ada, Doljevac, Lelić, Kušiljevo, Bezdan, Ćićevac-Stalać, Novi Sad II, and Subotica).

The total costs for the second phase are estimated at 216.4 million euros.

The loan of 183.9 million euros will finance 85 percent of the project’s value, while the remaining 15 percent will be financed from the Serbian budget.

The loan agreement was signed on behalf of Serbia by the Ministry of Finance on June 4, and the Draft Law on the Ratification of this loan agreement is currently in parliamentary procedure.

As stated in the document, the interest rate is variable, based on the six-month Euribor plus a margin of 1.75 percent per annum.

Wastewater collection, disposal, and treatment in Serbia is currently inadequate, resulting in a small number of functioning plants that do not provide an adequate degree of wastewater treatment, and consequently, the quality of treated wastewater discharged into watercourses is unsatisfactory.

A few years ago, Serbia launched the Clean Serbia project, which entails the construction of municipal infrastructure and wastewater treatment plants.

The first project phase began in 2021 with the signing of a commercial contract with China Road and Bridge Corporation.

(Nova Ekonomija, 28.06.2024)

This post is also available in: Italiano

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