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The modernisation of the Belgrade – Budapest line (Serbian section): The second part

The modernisation of the Belgrade – Budapest line (Serbian section): The second part
photo: https://www.beltandroad.news/hungary-china-sign-budapest-belgrade-rail-project-loan-deal//Railway
05 / 05 / 2021

Project Belehrad – Budapest – Project steps• Stara Pazova – Novi SadSection Stara Pazova – Novi Sad due to the complexity of the section was divided in three characteristic components:

1) Construction of a new tunnel "Čortanovci" (two single-track tunnels about 2x1.2 km long) and viaduct (about 3 km in length)

Annex 3.1 of Agreement between the Government of Russia and the Government of the Republic of Serbia was signed in February 2017 in value of USD 337,6 million of which 85% will be financed from the Russian loan and 15% from the Serbian state budget. Work began on September 19 it is planned to last until the end of 2021.

2) Reconstruction and modernization of the open railway line (total length 36.2 km)

Annex 3.2 of Agreement between the Government of Russia and the Government of the Republic of Serbia was signed in February 2017 in value of USD 247,9 million of which 85% will be financed from the Russian loan and 15% from the Serbian state budget. Work began on March 19 it is planned to last until the end of 2021.

3) Electrification and equipping railway line with signal-safety and telecommunication systems

In January 2019, Serbian Railways Infrastructure (SRI) and RŽD International signed a new Contract for the execution of works on the construction of railway infrastructure, which includes funds in amount of EUR 91,7 million for electrification and equipping railway line with signalling and telecommunication systems of Stara Pazova – Novi Sad of which 75% will be financed from the Russian loan and 15% from the Serbian state budget. A separate annex for these works is planned to be signed in first half of  2020.

• Belgrade (Central station) – Stara Pazova and Novi Sad – state border (Kelebija)

The project consists of modernisation of the existing tracks and the construction of the second track with total closure of line and stopping of the traffic during execution of works, two sections: Belgrade (Center station) – Stara Pazova 34.5 km and Novi Sad – state border (Kelebija) 108.1 km, 142.6 km in total, rail tracks for mixed passenger and freight transport, electrified and capable of running with speeds of up to 200 km/h, and level crossings. During execution works all traffic is diverted to alternative route. Its scope includes design, construction and equipment of the rail line is in accordance with EU standards, the law on safety and interoperability of the railway system, which will meet all conditions and standards for the construction and equipment of the main European corridor lines and interoperability (according to TSI regulations) in the Single European Railway Network TEN-Т. The independent body – (NoBo) – is chosen to control the compliance of works with the lists defined in TSIs or European standards.

A contract of USD 350.162 million has been signed for the Belgrade Center – Stara Pazova section. A loan agreement of USD 297.6 million has been signed with Chinese Export-Import Bank. The agreement entered into force in December 2017, when the Commercial Agreement came into force. Annex 1 of the Commercial Agreement was signed in July 2018. Works started at the beginning of June 2018.

For the section Novi Sad – Subotica – state border, the Commercial Agreement was signed in July 2018 in the amount of USD 1.162,8 million and it entered into the force in November 2019. An application for the approval of a loan for a privileged buyer Eksim Bank in the amount of USD 988,388 million, with all necessary documents, was submitted. A loan was approved and a Loan Agreement was signed on April 25, 2019. The complete spatial plan of the special purpose area (PPPPN) was adopted in August 2019. The feasibility study with the preliminary design are currently under preparation and will be send to the Audit Committee as soon as they are done. The works on the Novi Sad – Subotica – National Park (Kelebija) section are expected to start in 2020.

The implementation of the project is planned for the end of 2023. The financing comes from the budget of the Republic of Serbia (in the amount of 15% of the contracted amount) and from the loan from Export-Import Bank (Exim Bank) of the People's Republic of China (in the amount of 85% of the agreed amount).

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