To develop the railway linking Serbia’s capital, Belgrade, to Hungary’s capital, Budapest, the two countries and China signed agreements and held several meetings. According to the latest reunion in September 2016, the Serbian Minister of Transport announced that preliminary design works to Belgrade – Stara Pazova section, part of Budapest – Belgrade railway would be soon completed. The parties will also sign the commercial contract.
The railway project includes the development of 370 km of railway, including works for the construction, extension and modernisation of the railway. Around 335 km of the total length will require conversion and electrification works and 166 km of railway will be modernised on Hungary’s territory. The whole project, with China’s implication, is estimated at around EUR 2.9 billion of which 85% will be covered by the Chinese. The project is expected to be completed two years after the launch of construction works. On Hungary’s territory, the project is estimated at EUR 1.5 billion. At the end of last year, China granted Hungary a loan to upgrade the Budapest-Kelebia-Serbian border section, covering 85% of the project’s cost in Hungary. Also, the consortium including Főmterv and Ecoroad won the tender for the preparation of the feasibility study for the construction of the Hungarian segment. During a meeting of June 2016, Minister of Foreign Affairs Péter Szijjártó and Deputy Head of China’s National Development and Reform Commission Wang Xiaotao declared that a legal solution must be elaborated so that the Chinese investment would be compliant to EU regulations.
At the end of 2015, Serbia also signed a separate agreement with China to finance the project on its territory which includes 177 km of the route.
During the fifth reunion of the Serbian Minister of Transport, Zorana Mihajlovic, representatives of China’s National Development and Reform Commission and Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, it was announced that the preliminary design works to Belgrade – Stara Pazova section, part of Budapest-Belgrade line would be completed over the next period. The commercial contract will be signed by the parties in 2016. “Serbia’s interest is to launch the project as soon as possible and sign the commercial documents with the Chinese to develop the project that will help increase traffic and railway transport speed. Also, it is important to harmonise the elements agreed with Serbia’s regulations and the EU transport standards”, said Zorana Mihajlovic.
Another step forward in this project includes the technical group of the three countries that involved in the conclusion of an agreement regarding the technical and technological problems of the project to enable the traffic of trains at speeds of 200 km/h. The Chinese part in this project is represented by CRBC (China Bridge and Road Corporation), CCCC (China Communications Construction Company) and China Exim Bank.
Recently, Minister Szijjártó said the development of railway infrastructure is vital for Hungary and one of the most important projects is Budapest-Belgrade which is constantly evolving. “Those involved agree that the modernisation of the Budapest-Belgrade railway line is moving forward in accordance with EU regulations; the planned cost of the project is 550 billion forints (EUR 1.77 billion), trains on the line, which will be expanded to two tracks, will travel at 160 km/h and the railway line’s axle load capacity will be increased. According to the plan, the Chinese party would submit its financing proposal to the Hungarian party by the end of October. Hungarian Railways (MÁV) and its Chinese partner will be setting up a joint venture company to manage the project, and this joint venture will be agreeing on the terms and conditions with MÁV by November, after which the parties are expected to agree on the loan construction in Riga on 5-6 November,” Szijjártó said.
by Pamela Luica
Share on:
