The state of Serbia will take a loan of 42 billion dinars (about 358,8 million euros) from Bank Poštanska štedionica for the construction of a national football stadium with access roads. The contractor for the construction of the stadium in Surčino is the Chinese company Power China, he writes The new economy.
These data are found in the draft law by which the National Assembly should approve this financing, which is in the parliamentary procedure.
Borrowing, as it says, is done on the basis of the Agreement on long-term investment credit, which was signed on June 25 between Serbia and Poštanska štedionica bank.
It is a dinar loan, and Serbia will borrow at an interest rate equal to the three-month belibor plus a fixed margin of 2,9 percent per year. The loan repayment term is 11 years, with a grace period of three years.
A project of special importance
The Government of Serbia declared the project of construction of urban infrastructure and a national stadium with access roads as a project of special importance for Serbia in a conclusion dated May 11.
"Taking into account the successful cooperation so far with Power Construction Corporation of China Ltd, the Government, through the Ministry of Finance, on April 27, 2023, signed the Cooperation Agreement regarding the implementation and financing of preparatory design works for the project to build urban infrastructure and a national stadium with access roadways," the bill reads.
The works include the design, procurement and construction of the National Football Stadium with 52.000 seats, with associated parking, equipment and other supporting facilities in the function of the stadium.
Serbia last fall already borrowed from Poštanska Štedionica and Unikredit Bank for the construction of the line infrastructure to the National Stadium. With both of these banks, Serbia will be able to withdraw 11,2 billion dinars, that is, 24 billion dinars, which is a total of around 190 million euros.
From the amount contracted with Poštanska štedionica by the end of March of this year, Serbia withdrew about 8,2 billion dinars, while until the end of that month it did not withdraw the funds contracted with Unikredit Bank.
Project price bidding
The construction project of the National Stadium became more and more expensive year by year despite the fact that the necessary feasibility and justification studies were not prepared.
The price of the stadium has been auctioned since 2015, when it was announced. The price was 150 million euros, already in 2018 the value jumped to 250 million, although the construction has not even started yet, he writes Insider.
In the budget for 2024, the National Stadium is mentioned in four places. 360 million euros are planned for the construction of urban infrastructure and the national stadium with access roads.
Then, 190 million euros will be allocated from the budget for the construction of line infrastructure and supporting contents within the stadium.
The line infrastructure, which includes traffic areas, bridges, energy and telecommunication infrastructure, will be built with two loans, also from Postanska Štedionica and Unicredit Bank, and the works will be performed by the company "Power Construction Corporation of China".
Source: New Economy/Insider
