Serbia and China have signed a commercial agreement for the modernisation and construction of the first section of Belgrade-Budapest railway line and a memorandum of understanding for a loan to finance the these works.
JSC Infrastructure Railways of Serbia and a Chinese consortium formed of China Railway International and China Communications Construction Company have signed a contract for the first section of the project from Belgrade to Stara Pazova, worth USD 319 million. Financing will be provided under a loan agreed with the Chinese Exim Bank.
The contract provides that in the construction of the 34.5 km long double-track Belgrade – Stara Pazova railway section local companies can participate up to a maximum of 46 percent in the works and procurement of equipment.
The documents were signed in the framework of Riga summit of the heads of government of China and 16 central and eastern European (CEE) countries, on the 7th of November.