In a meeting with the delegation of China Machinery Engineering Corporation (CMEC), Simonovic said that the loan could be agreed before the Chinese President’s visit to Serbia in September, Serbian Railways stated in a release.
The funds from the loan would be used to reconstruct and electrify the Lapovo – Kraljevo railway, as well as the regional railways Mala Krsna – Pozarevac – Zajecar – Port of Prahovo and Mala Krsna – Smederevo, which have seen a growing volume of rail traffic towards the ports on the Danube in Prahovo and Smederevo.
The loan could also be used to fund the construction of a terminal on the railway Corridor 10 from Novi Sad via Belgrade to Nis, Simonovic said.
Officials of the China-based corporation, led by Li Xueqiang, chief representative of CMEC in Serbia, supported the proposal for the Chinese loan for railway to be serviced through exports of Serbian commodities into China and asked for the meetings at state level and the signing of memorandums or framework agreements to be organized as soon as possible.
The talks on cooperation with Serbian Railways in the realization of this arrangement have been under way since 2011, but the problem was lack of funds. The possibility of repaying the loan by exporting Serbian products to China has established conditions for this project, said Li.Serbian Railways are interested in a Chinese loan of approximately EUR 400 million for the construction of railway infrastructure which would be paid off through exports of Serbian commodities into China, General Director of Serbian Railways Dragoljub Simonovic said Monday in Belgrade.