Minister for the National Investment Plan Verica Kalanovic and Belgrade Mayor Dragan Djilas signed a contract yesterday on the works on the Zemun-Borca Bridge with Vice-President of the China Road and Bridge Corporation (CRBC) Lu Shan.

The value of the contract is €170 million, Kalanovic said and added that the works should start in September.

The bridge will be 1.5 kilometres long and all works are expected to be completed by the end of 2013.

The Minister said that the deadline for repaying the loan is 15 years, with a three-year grace period and a 3% annual interest rate.

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic, who attended the signing of the agreement, said that this project is important for Belgrade and Serbia because local construction companies and producers of construction material will have 45% participation in the project.

Dinkic stressed that this will enable further economic development of Belgrade, that is, the part of the city on the left bank of the Danube.

Up to 15% of funds will be provided from the NIP and the rest from loans granted by the Chinese Eksim Bank, while the costs of expropriation and technical preparations will be financed by the city.

Access roads of 21.5 km will also be built as part of the project.

Belgrade Mayor Dragan Djilas recalled that the last bridge in Belgrade was constructed 35 years ago, announcing that the Zemun–Borca Bridge will initiate the development of a neglected part of the city and create an opportunity for the construction of another residential area similar to New Belgrade.

Chinese Ambassador to Serbia Wei Jinghua said that this will be a bridge of Serbian-Chinese friendship, noting that the project shows how much importance Serbia is giving to economic cooperation with China.

CRBC Vice-President Lu Shan stressed that his company is interested in building infrastructure in Serbia.

The Chinese embassy’s First Secretary Zhang Dianbin also attended the signing.