Serbia highway deal awarded

The necessary financing package for Serbia’s key highway project is now being secured. The Belgrade to Sarajevo highway is already under construction, with 60km of the link having been built so far. The existing section of the highway connects Obrenovac with Ljig, while work on the southern stretch of the route is due to commence shortly. Serbia has taken loans worth €3 billion for its share of the project, with the Turkish Government and various Turkish banks being directly involved in supporting the works

Discussions between Serbia and Bosnia regarding the planned highway linking the two countries have yet to be carried out. The highway will join the two capitals, Belgrade and Sarajevo. However Turkey has said it will not enter discussions regarding its providing financing for the project until Bosnia and Serbia have determined the route the new highway will take. Turkey says that it recognises the economic importance of this highway for the region as a whole, which is why it is willing to discuss financing.

Discussions are being held with regard to funding for the Sarajevo to Belgrade highway link. The project is likely to cost around €3 billion to construct. The two cities lie around 194km apart but the current road route measures some 308km and takes close to six hours to drive. Building the new highway will reduce the distance and cut journey times considerably, as well as boosting safety and capacity.