Agreement on construction of Belgrade-Sarajevo highway section from Sremska Raca to Kuzmin signed – Value at EUR 250 million

The commercial agreement on the design and construction of the Belgrade-Sarajevo highway section from Sremska Raca to Kuzmin, worth EUR 250 million, was signed in Belgrade on December 19, and Serbian Transport Minister Zorana Mihajlovic said that connecting Serbia and Bosnia and Herzegovina this way was important to the stability of the region.

The agreement was signed by Zorana Mihajlovic, the acting director of the Roads of Serbia, Zoran Drobnjak, and Emrullah Turanli, the president of the Turkish company Tasyapi, which will realize this project.

Mihajlovic said that the signing of the financial agreement was expected the next year, whereas the construction of the highway should start in early 2020.

The Belgrade-Sarajevo highway will feature two routes. In the territory of Serbia, they entail sections Raca-Kuzmin (around 17 kilometers) and Pozega-Uzice-Kotroman (around 60 kilometers).

The construction of both sections in the territory of Serbia is worth a total of around EUR 1.05 billion, with the Sremska Raca-Kuzmin section being worth around EUR 220 million, whereas the construction of the Pozega-Kotroman section will cost around EUR 830 million.

The value of the commercial contract on the design and construction is EUR 250 million, and it entails the preparation of the detailed regulation plan, projects and construction of the Sremska Raca-Kuzmin highway (with a bridge over the Sava) and the preparation of the project for the Pozega-Kotroman section.

The minister told the press at the Government of Serbia that Turkey and Serbia had good economic and bilateral relations and that the common interest of both countries was to develop to the end of the stability of the region.

The Belgrade-Sarajevo highway is the first highway to directly connect Serbia and B&H, as well as Serbia and Republika Srpska, and it is also of great importance for connecting the region.

Minister of Trade, Tourism and Telecommunications of Serbia Rasim Ljajic said that the agreement was the result of the best relations of Serbia and Turkey, but also of personal relations of presidents Erdogan and Vucic.

He said that the realization of the project had started despite doubts due to the high price.

Ljajic said that this agreement was important economically since B&H was the third exporting market for Serbia, and as for the CEFTA, half the trade pertains to B&H.

Turkish Minister of Transport and Infrastructure Mehmet Turhan said that the agreement was only one beginning when it comes to the relations of the two countries and that Turkey gave considerable attention to its cooperation with Serbia.

He said that Tasyapi was one of the most successful Turkish companies and that it was important that it would realize such an important project in Serbia.

Turhan reminded that the general agreement between the Government of Serbia and the Turkish company on cooperation in infrastructural projects, including the Belgrade-Sarajevo highway, had been signed on September 21.

– This agreement is very important and I want it to be of use to both countries, and we will work on further improving our relations – Turhan said.

Two agreements in the field of apartment building were also signed with Tasyapi yesterday. They pertain to the construction of apartments in Vranje and Nis within the program of building apartments for members of security forces.

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

Ministarstvo turizma i omladine Republike Srbije

JP Putevi Srbije Beograd

Tasyapi

Zoran Drobnjak

Emrullah Turanli

Belgrade Sarajevo highway

agreement on Belgrade Sarajevo highway

Sremska Raca Kuzmin section

Pozega Uzice Kotroman highway

Rasim Ljajic

Mehmet Turhan