State to Take Out a Loan of EUR 431.6 Million at JP Morgan for Morava Corridor

Members of the parliament will soon approve, through adopting a new law, the borrowing of EUR 431.6 million by the Republic of Serbia. This money will be used to pay a part of the obligations toward the Bechtel-Enka consortium, the contractor on the Morava Corridor project.

The loan is approved by JPMorgan Chase Bank, for a period of 13 years, with an annual interest rate of 0.5%, augmented by a six-month EURIBOR. The plan is for Pojate and Preljina to connect via 112.37 kilometers of a highway by 2024.

The PE Corridors of Serbia, the purchaser under the loan agreement, notes that, in the past six months, the works on the Morava Corridor have intensified and that they are now progressing in line with the schedule.

– The works on the construction of the highway route are being carried out on Section One, from Pojate to Krusevac, on a total of 53 points. Earth works are also being carried out on Section Three, from Adrani to Preljina. On the first section, there are currently works on the construction of nine bridges and overpasses and six culverts, as well as the moving of the current utility infrastructure and the hydrotechnical development of the West Morava. On Section Three, subsection Adrani-Mrcajevci, the works on the construction of the bridge have started, whereas, on subsection Mrcajevci-Preljina, the works are expected to begin in August 2021 – the PE Corridors of Serbia announces.

The question of ownership over the parcels is solved along the entire route of the future corridor. The process of expropriation of land for all three sections and for the regulation of the West Morava, is fully finished. All the decisions have been adopted and the contractor has been allowed to take possession of the site.

– Through the partnership with the National Employment Service, the Bechtel-Enka consortium is striving to employ local workers as much as possible. Of the total of 1,600 workers on this project, 1,100 are from Serbia. Of the total number of subcontractors, 90.5% are local companies, hired through a large number of contracts, the signing of which is the responsibility of Bechtel-Enka – the PE Corridors of Serbia says.

JP Morgan Chase & Co. SAD

Koridori Srbije d.o.o. Beograd

Nacionalna služba za zapošljavanje Kragujevac

JPMorgan Chase Bank

Corridors of Serbia

Bechtel Enka

National Employment Service

Pojate

Preljina

Adrani

Mrčajevci

West Morava