JSC Serbian Railways


Signing the contracts with European banks in July

Along with all the activities we have had preparing and realizing the huge tender for the investment in the new railway station Prokop, in the last eighteen months we were preparing two great credit contracts, with European Investment Bank EIB, worth 80 million Euros, and with European Bank for Reconstruction and development EBRD, 60 milion Euros worth – said the General Manager of “Serbian Railways” Milanko Šarančić.

Contract with the European Investment Bank regards infrastructure investments on Corridor 10. The first and the most important investment is the section between Niš and Dimitrovgrad, which should be completely repaired, while the other phase is electrification. Second important investment within this contract is the replacement of the bridge Jovac near Ćuprija, with completely new railway sections before and after the bridge. The entire bridge should be replaced. The old one will still be in use, waiting for the new bridge to be finished. In the mean time we will make the other railway section for the placement of the bridge and connection with the railway line. That includes complete replacement of bridge construction and railway line as well, said Šarančić, and added that this project also involves the repair and continuance of the second track on the line towards Sid.

Together with the fourth part finished last year, on the section Petrovaradin – Čortanovci, we will conclude all necessary investments in Corridor 10 through Serbia. Regarding double-track lines, our intention is to construct it on Corridor 10 in the section Belgrade – Niš. But currently that is far future. We now have approximately 70 kilometers of double-track and intend to finish this part, so we could have double-track line from Belgrade towards Šid, via Inđija. This is also the only railway section that can support the speed of 160 kilometers per hour, but in this moment we need to invest more to reach that vehicle speed, said the General Manager.

– Currently, the most important railway line in Serbia is Niš – Dimitrovgrad, the only section that connects east and west, and it is not electrified. In order to do the electrification, we have to create conditions for the repair of this line.

The credit contract with the European Bank for Reconstruction and Development should also be signed next month, and concerns mostly the sum of 58,5 million Euros, intended for freight cars, while other million and a half is planned for one under floor wheel lathe, necessary for these wagons. Depending on prices and tender, there should be 1100 to 1200 wagons. We hope to have these wagons on Serbian railways till the end of 2007.

Along with these activities, we are approaching the signing of the contract with the Kingdom of Spain. Value of this project is about 32,5 million Euros, and right now, with our Spanish partners, we are deciding about the structure of the provision of rolling stock. It is important to mention that this entire credit potential, with the warranties given by Serbian Government, regards passenger program.

One of the most important projects is still the electrification of the railway section Pančevo – Vršac, in the length of 90 kilometers. Once completed, this will finally connect by electro traction the line in Bačka and Corridor 10 with Romania, Moldavia, Ukraine. This project also requires the Government warranties, since the approximate value of entire job is 45 million Euros. Certain German partners and banks have already provided the money.