JSC Serbian Railways


Kuwait invests €25 million in “Prokop”

Serbian Prime Minister Ivica Dačić and Director General of Kuwait Fund for Arab Economic Development (KFAED), Abdulwahab Ahmad Al-Bader, signed today a guarantee agreement of the Republic of Serbia on €25 million loan provided by Kuwait for continuing the construction of the railway station “Prokop”.

“Serbian Railways” Director General, Milovan Markovic, and Director General of Kuwait Fund for Arab Economic Development, Al-Bader, signed the Contract on loan provided by Kuwait for the construction of “Prokop”. The loan has been approved under very favorable conditions, with a fixed annual interest rate of 3%, repayment period of 18 years, and a grace period of four years.
Serbian Prime Minister said that this was the first contract between Serbian Government and Kuwait Fund and he also reminded that cooperation in fields of civil engineering, military industry etc. between these two countries was excellent before.

The interest of Serbia is to renew the friendship and cooperation with Kuwait. There are many opportunities, but also Kuwait has interest to invest in our country. The loan is only for the construction of infrastructure under very favorable conditions and it will be a stimulus to complete “Prokop” faster, but there are also opportunities in fields of agriculture, civil engineering and military industry- pointed out Prime Minister Dačić and added that corresponding ministries have been already working on other types of cooperation with Kuwait.

Abdulwahab Ahmad Al-Bader pointed out that he was honored to participate in renewal of the cooperation with Serbia, which, as he said, has great potential and magnificent history. He reminded that Fund for Arab Economic Development was formed in 1961and that the Fund preformed constructions in Africa, Asia, Middle East countries, but also in European countries.

On the occasion of the guarantee agreement and contract signing, Minister for Infrastructure Milutin Mrkonjić, “Serbian Railways” President of General Meeting of Shareholders Zoran Anđelković, but also Ambassador of Kuwait in Belgrade Fawzi Abdulaziz Ahmad Al-Jasem, Director of KFAED Yousef Fawzi al-Hunaif and Regional Manager of KFAED for central Asia and Europe Yousef Ghazi Al-Bader were present.

According to expectations, the realization of the loan will start in spring next year, when the weather conditions allow full work of the construction and railway workers.

Kuwait loan will be invested for the completion of railway, i.e. for the building of the construction and electro technical infrastructure in Prokop. The remaining six tracks are also planned for the construction (apart from the four that already exist), as well as construction of the accompanying platforms, than electro technical and signal safety facilities and finally, Telecommunication building for the territory of the Belgrade junction.

Today “Prokop” is only used by trains of the new city railway “BG Voz”, and realization of this work will enable that also local, regional and international passenger trains go through this station..

The contract, worth 25 million Euros will be a good opportunity for the contractors and the construction companies from our country to get a job and to confirm their quality. Serbian Railways have already started with the preparing of the Tender Documents, and the entire work can be finished in two years.

Partners from Kuwait announced during previous negotiations a possibility to, if they are satisfied with the realization of this contract, continue to invest into further construction of the main railway station “Prokop” in Belgrade. That would include construction of the station building and the commercial centre on 130.000 square meters.

Complete station in the terms of construction, could be built in three years time. When “Prokop” becomes operable, old railway station will be relocated from the Karađorđeva Street, i.e. from the Belgrade centre, which would enable shortening of all train lines which go through the capital on one hand, and also, releasing of 80 hectares of attractive land in the area around Sava on the other. In that manner, Belgrade will get a modern, well equipped station which will be able to connect city and intercity traffic and to receive all transit international passenger trains.