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Morava Highway

$550 million
Summary of Proposed Guarantee

Project description

This Early Disclosure covers an application by JPMorgan Chase Bank N.A., London Branch (“JPM”) on behalf of itself and other commercial bank lenders yet to be identified,   for their non-shareholder loans to the Government of Serbia (“GoS”) represented by the Ministry of Finance (“MoF”), for the construction of a 112 kilometer (“km”) highway and flood prevention systems along the West Morava River (“the Project”). JPM is seeking a  Non Honoring of Sovereign Financial Obligation (NHSFO) guarantee of up to USD 550 million, for a period of up to 15 years.

The Project consists of a greenfield 112 km dual-carriageway tolled motorway, within a 900 meter right of way, located approximately 200 km south of Belgrade, in a low-level flood plain running east/west along the West Morava River Valley. The Project also includes (i) above ground structures such as interchanges, bridges, culverts, and over/under passes; (ii) a telecommunication network (digital corridor) supported by power lines and communication cables to connect the telecom stations within the motorway (at rest areas, parking lots, and near traffic loops) and to manage traffic through various traffic control, surveillance, and tolling systems; and (iii) river regulation works intended to protect the Project and its surrounding areas from flooding.

The motorway spans from Pojate on the A1 (the North-South motorway in central Serbia) through Kruševac and up into Preljina, near Čačak. Due to the heterogenous characteristics and requirements along the route, the Morava Highway will be divided in three sections: Pojate-Kruseva (circa 28km), Krusevac-Adrani (c. 53km) and Adrani-Preljina (c. 31km).

Ownership of the Project sits with the Ministry of Construction, Transport and Infrastructure and Corridors of Serbia, a division of said Ministry that oversees the development and construction phases of the Project.

Environmental Categorization

The Project is Category A under MIGA’s Policy on Environmental and Social Sustainability (2013).

Through this Early Disclosure, MIGA provides early access to the Environmental and Social Impact Assessment (ESIA).

  • Morava Corridor Motorway Project, Republic of Serbia Ministry of Construction Transport and Infrastructure, Environmental and Social Impact Assessment Report, 2U1K, November 2020

This ESIA has been commissioned by Corridors of Serbia and should not be taken as an indication that MIGA has completed its review of the Project. Any documentation included or attached herein has been prepared and authorized for public release by entities other than MIGA. The disclosure of this ESIA should not be construed as presuming the outcome of MIGA’s environmental and social (E&S) review. MIGA’s E&S due diligence will be carried out in accordance with the MIGA Policy on Environmental and Social Sustainability (2013) . Details of MIGA’s findings and gaps to the MIGA Performance Standards  will be reflected in an Environmental and Social Review Summary (ESRS) for the Project, supplemented with an Environmental & Social Action Plan (ESAP), and published on MIGA’s website ahead of the Project’s consideration for approval, per MIGA’s Access to Information Policy (2013).

The ESIA can be accessed below:

            Appendix 1Appendix 2;Appendix 3;Appendix 4;Appendix 5;

            Appendix 5.1;Appendix 5.2;Appendix 5.3Appendix 5.4;Appendix 5.5 ;

            Appendix 5.6;Appendix 5.7;Appendix 6Appendix 7Appendix 8;

            Appendix 9; Appendix 10Appendix 11;Appendix 12;Appendix 13;

The ESIA is also available at the Corridors of Serbia’s website:

MIGA does not guarantee the quality of the ESIA.

Development Impact

The Project is expected to bring economic benefits to the Republic of Serbia in terms of: domestic travel time savings; improved road quality and safety; improved road and telecommunication connectivity; and potentially reduced flood risks.