On March 15, 2022, The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, signed a contract of guarantee for EUR 411.4 million (c.US$ 451.8 million), providing NHSFO coverage to (i) JPMorgan Chase Bank N.A. London Branch, (ii) CaixaBank, S.A., (iii) Banco Santander, S.A., (iv) UBS Switzerland AG, (v) Credit Agricole Corporate and Investment Bank, and (vi) Raiffeisen Bank International AG 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”),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.
The Project is Category A under MIGA’s Policy on Environmental and Social Sustainability (2013). To view ESRS please Click here.
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. The Project is expected to be Paris Aligned, and the Project’s climate finance share is expected to account for up to 18% of MIGA’s gross issuance.