10.4m EUR for road from Kladovo to Niš - "Putevi Srbije" and EAR signed contract on rehabilitation of roads in east Serbia

Head of the operation of European Agency for Reconstruction in Serbia, Hristos Gofas, and GEneral Manager of Public Company "Putevi Srbije", Branko Jocić, signed the contract yesterday (August 21, 2007) on joint financing of project "Reconstruction of roads in east Serbia".

The project includes reconstruction of main road M-25, from Kladovo to Niš, and several regional roads, and the value of works is 10.4m EUR. The contract was also signed by Dragan Zdravković, Manager of Company for Roads "Zaječar", which is the contractor.

General Manager of "Putevi Srbije", Branko Jocić, said at the press conference that the region of east Serbia had suffered for the long time due to insufficient investments, both in maintenance of road network and in development of roads of the first and the second category, due to which the business activity in that region had been slown down.

- In the past four years, Government invested significant funds in that part of Serbia. The investments were placed in maintenance of roads and in the bypass around Zaječar, as well as in the region of Bor. Four important bridges on road M-25 have been rehabilitated, while more than 2.5m EUR have been spent on the rehabilitation of roads - Jocić pointed out. Head of the EAR operation , Hristos Gofas, said that the rehabilitation of M-25 road represented part of the aid for development of 15 municipalities in east Serbia, which is realized through 70 projects.

- M-25 road represents a communication spine and a key for economic development of the region. All those who drove on that road realized that the urgent rehabilitation is required. East Serbia has great tourist potentials due to vicinity of the Danube and the overhaul of traffic infrastructure is a crucial step forward. We are satisfied with the fact that the contractor is local company and we believe that we will see a new road in one year - Gofas pointed out.

Engineer Dragan Pavković from "Putevi Srbije" reminded that two sides had equal financial shares in the project and that 5m EUR donated by EAR would be invested in the elaboration of the project and financing of works on road M-25, while "Putevi Srbije" would invest part of their funds in rehabilitation of regional roads R-104, R-105, R-121, R-243, R-244, R-248, R-260 and 54 km of main road M-9.

Pavković reminded that the works would start in the second half of August and that the deadline for completion is six months. Total of nine sections 30.2 km long will be reconstructed on road M-25. This is the road that sees between 3,000 and 7,000 vehicles a day and six kilometers of the road will be broadened. Estimated value of the works is 4.69m EUR.