Implementation of Belgrade Metro Project

French support to Serbia in the implementation of the project “Belgrade Metro”

At its session held on December 24th, 2020, the National Assembly of the Republic of Serbia adopted the Law on Ratification of the Agreement between the Government of the Republic of Serbia and the Government of the Republic of France on Cooperation in the Implementation of Priority Projects in the Republic of Serbia.

The agreement was signed on November 26th, 2020 between the French Minister of Foreign Trade and Economic Promotion, Frank Rister, and the Serbian Minister of Finance, Siniša Mali.

The agreement regulates the following issues:

Priority forms of cooperation have been identified, namely:

  • Completion of phase 1 “Belgrade Metro” in the maximum value of 454,000,000 RSD and
  • Project for improving and increasing the efficiency of the electricity distribution network in Serbia in the maximum value of 127,000,000 RSD.

Available financial resources are envisaged, as well as the manner of their provision.

The amount intended for the realization of phase 1 of the “Belgrade Metro” project is specially regulated.

Financial support consists of:

  • a direct loan from the French Treasury in the maximum amount of EUR 80,000,000 and
  • bank loans guaranteed by Bpifrance Assurance Export, for the account and on behalf of the Government of the French Republic, in the amount of a maximum of EUR 374,000,000.

Financial support for the electricity distribution network management project in the Republic of Serbia consists of:

To introduce general automation of Serbian electricity distribution network management:

  • a direct loan from the French Treasury in the amount of a maximum of EUR 24,348,272;
  • bank loans guaranteed by Bpifrance Assurance Export, for the account and on behalf of the French Government, in the amount of a maximum of EUR 97,151,728.

For joint assistance in project management and implementation:

  • part of a loan from the French Treasury in the amount of a maximum of EUR 5,500,000.

It is envisaged that the implementation and realization of projects envisaged by this agreement shall be regulated by special separate contracts on export, delivery of goods and services or construction, prepared by the competent authorities and institutions, companies of the Parties with the consent of the authorities of both Parties. so-called commercial contracts, as well as the conditions for their signing.

The realization of these projects is of great importance for the Republic of Serbia, they should contribute to the improvement of the Serbian economy and facilitate the transfer of technology, as well as contribute to the professional development of skilled and unskilled labor in these areas.