Biggest projects for which Serbia is proposing EU financing – EUR 3 billion for railroads alone

The information that the European Commission has approved the reform agendas of the Government of Serbia and another four governments from the Western Balkans means that the use of EUR 6 billion from the EU Reform and Growth Instrument has been enabled.

The Reform Agenda of Serbia also features the indicative list of projects which will be proposed for financing from the Western Balkans Investment Fund (WBIF), among which the most valuable one is the reconstruction and modernization of the railroad section from Valjevo to Vrbnica and the border with Montenegro, with an estimated investment value of EUR 1.34 billion.

The aim of the realization of the project, according to the Reform Agenda, is the reconstruction of the existing rail section Valjevo-Vrbnica-Montenegrin border, the construction of new electronic rail signalization, stations and rail crossings, the construction of stable electric traction facilities and the repair of all the substructure facilities.

The preparation of the technical documentation was completed at the end of 2022, whereas the report on the technical control was approved for the preliminary project in May 2023, and in the next period, as written, the confirmation of the acceptance of the Environmental Impact Assessment Study is expected.

The planned timeframe for the realization is 2025-2030. Let us remind that the minister in charge of infrastructure, Goran Vesic, said that Serbia, together with Montenegro, would seek assistance from the EU for the modernization of the Belgrade-Bor railroad.

Fast railroad to Sid also planned

The modernization of the Bar railroad is also the most expensive individual project in the Reform Agenda, which contains several other ambitious rail projects. Also included is the reconstruction and modernization of the railroad Brestovac-Presevo-border with North Macedonia, for 160 km/h, with a total investment value of EUR 700 million and the timeframe for the realization of 2026-2029.

Also applied for EU support is the reconstruction and modernization of the rail sections Stalac-Kraljevo and Kraljevo-Rudnica, worth EUR 288.5 million and EUR 438 million with the realization framework of 2026-2029 and for 120 km/h.

The agenda also features the reconstruction and modernization of the rail section Ostruznica-Surcin-Batajnica, which, as explained, is part of the main freight corridor on the pan-European freight corridor Alps-Western Balkans and is exclusively used for freight train traffic. The total value of the investment for this project is EUR 182.3 million, and the planned timeframe for the realization is 2027-2030.

Finally, the agenda features the reconstruction and modernization of the rail section Stara Pazova-Sid. That project, according to the document, encompasses the reconstruction of both tracks and all the station tracks for speeds up to 200 km/h.

The total investment in the fast railroad to Sid is worth EUR 740 million, and the timeframe is 2025-2028.

New gas pipeline, power plants and construction of BIO4 campus

The indicative list of the projects proposed by Serbia for EU financing also features the construction of a two-way gas pipeline Nis-Velika Plana-Batajnica-Horgos with compressor stations in Batajnica and Batocina.

The project whose value is estimated at EUR 720 million is the main north-south two-way gas pipeline, and it is estimated to enable an increased security of supply with the full use of interconnectors between Serbia and Bulgaria, that is, North Macedonia.

The Agenda says that, this year, the preparation of the project-technical documentation started and that the completion date “will be defined”.

As for other projects in the field of energy, the reconstruction of the Hydro Power Plant (HPP) Potpec with the construction of a fourth production unit, the project of the reversible hydro power plant in Zvornik and the projects of the construction of the solar power plants Kolubara A and Morava have been applied.

– The solar power plant Kolubara A will be located in the wider area of the Veliki Crljeni settlement. It is expected to produce nearly 95 GWh of electrical energy and contribute to the reduction of carbon dioxide emissions by close to 110,000 tons a year compared to the equivalent product at thermal power plants – the explanation says.

The solar power plant Morava will be located in the wider area of the Svilajnac settlement, and it is expected to produce nearly 60 GWh of electrical energy.

The total value of the investment in the solar power plant Kolubara A amounts to EUR 80.1 million and in Morava EUR 50.13 million.

One of the most valuable projects from the indicative list of the Reform Agenda is the construction and equipping of the BIO4 Campus. That project, as explained, encompasses infrastructural works for the construction and equipping of the complex in which seven faculties and nine institutes will be located, as will be the ICT part of the Science-Technology Park Belgrade and companies from said fields. The campus will also include seven centers with remarkable infrastructure, as well as congress and multimedia spaces with side facilities.

The total value of the investment is EUR 795.83 million, and the planned timeframe for the realization started in 2023 and lasts until 2027.

As announced in the press release on the occasion of the adoption of the Reform Agenda, the European Commission will now start signing loan and instrument agreements with the beneficiaries (including Serbia), which will include obligations for users to take adequate measures for preventing, detecting and mitigating fraud, corruption, conflicts of interest and irregularities affecting the financial interests of the Union.

Parallel with this, the users can ask for the payment of the funds for pre-financing up to 7% of their total indicative allocation envisaged within the Instrument.

The payment of the pre-financing will depend on the coming into effect of the loan and instrument agreement, with compliance with the requirements that the Commission will follow before each payment.

Vlada Republike Srbije

Naučno-tehnološki park Beograd

WBIF Beograd

BIO4 d.o.o. Beograd

European Commission

WBIF

ICT STP Belgrade

Reform Agenda of Serbia

reconstruction of Valjevo Vrbniva Montenegrin border railroad

fast railroad to Sid

reconstruction of Brestovac Presevo border with North Macedonia railroad. reconstruction of Ostruznica Surcin Batajnica railroad

BIO4 Campus

two way gas pipeline Nis Velika Plana Batajnica Horgos

solar power plants at ash disposal sites

RHPP Zvornik

projects for EU financing