Chinese want Corridor XI - China Road and Bridge Corporation delivers official offer for construction of highway to Montenegro

Chinese China Road and Bridge Corporation has delivered a formal offer of the Public Enterprise Koridori Srbije for financing and construction of all remaining sections of the Corridor 11 from Belgrade to Boljare, the border with Montenegro.

The section of 270 kilometers totals more than EUR 2.6 bn and the Chinese would fund this project out of the loan package of EUR 10 bn set aside for the East European countries.

Koridori say the offer is very serious and that, if they agree, the construction could begin already in a year.

China Road and Bridge Corporation is known for its current construction works on the Borca – Zemun bridge. They have been present in our market for more than three years, and their experts did not waste time.

Based on our preliminary designs for the Corridor 11, they did a detailed animation of the route. They have located the starting point in Surcin, and they split the entire length of the highway into seven sections, from Belgrade to Obrenovac, from Ub to Lajkovac , from Ljig to Preljina, from Preljina to Cacak,from Cacak to Pozega, from Pozega to Boljare. A total of 270 kilometers would be constructed.

- Convenience of the Chinese offer implies that 40% of work in financial terms are carried out by domestic businesses which is not bad considering the fact that there is no work in construction industry - Mihajlo Misic, Director of Koridori Srbija, said.

The Chinese are willing to give us loan or to build the road as concessionaires. In case of concession, the Azerbaijani loan of EUR 300 mil for a share will be registered as the capital of Serbia.

Accordingly, the toll would be distributed. Koridori said the Chinese loan is one of the most favorable on the market.

- With respect to the interest rate, the offer does not contain defined rates but as far as I monitored that credit the Chinese government pompously announced, the interest rate may be up to 2%, which is the most favorable interest rate we have ever had – Misic said.

As RTS found out, the Chinese proposal should soon be considered in the Serbian government. In addition to the proposals for the construction of Corridor 11, the Chinese have prepared the preliminary design for the construction of the Vinčc-Pancevo road and railway bridge.