Ada Ciganlija Bridge
» Introduction
The Belgrade city government has announced a public announcement for the collection of offers by way of competition for the completion of an ideal project for the bridge over the Sava river at Ada Ciganlija. This bridge represents the most important element of the future Belgrade traffic network, which is the inner half-ring road which stretches from New Belgrade to the Pancevo bridge.
The competition also seeks to obtain the completion of a feasibility study, study of its effect on living standards, and the strategy for the part of the inner half-ring road from ul. Omladinskih Brigada to ul. Paštroviceva.
The city council has today agreed upon the proposal to take out a credit from the European Bank for Reconstruction and Development in the amount of 69.9 million Euros for the construction of the bridge over the Sava river at Ada Ciganlija. The total amount to be invested in the construction of this bridge and its accompanying roads and ramps will cost 161 million Euros with 87.9 million Euros being provided by the city budget along with a 3 million Euro donation from the European Agency for Reconstruction. The construction of only the bridge will cost between 80 and 90 million Euros.
The city manager provided some more information on the credit provided and stated that the city's representatives have been having negotiations for more than a year with the EBRD to get the best conditions possible. He emphasized that the bridge over Ada Ciganlija is essential for the further development of traffic in Belgrade and the city has been working tirelessly on this project for over 3 years. The city did not have all the funds necessary for the projects, so taking out a loan was required.
Of the 69.6 million Euros to be loaned to the city of Belgrade, 49.6 million Euros will be provided by the EBRD while 20 million Euros will be offered by a commercial bank that the EBRD chooses. This is important for the city as it will show commercial banks that they are capable to take out loans. In addition, the EBRD did not ask for any guarantees from the Federal government as it assessed that the city was able to pay back its own debt.
The total interest rate on the credit will be slighlty less than 5 percent, which is extremely good for the conditions on this market. If the financial situation of the city budget improves and Belgrade receives a better credit rating, the interest rate can be lowered in steps. As a result, the city will soon announce a tender to choose an agency that will determine the exact credit rating of the city.
The city says that it is their wish to spend all the money by the end of 2009 and the debt will start to be paid off on July 21, 2010, which means that the city has received a grace period of 4 years. Taking this credit will not damage te city budget and analysis has shown that in 2011, which will be the hardest for paying of credit, 26 million Euros will need to be returned, which is approximately 5 percent of the current budget. However it is expected that by that time, the city budget will be increased by at least 10 percent.
He expressed the expectation that construction of the accompanying roads and bridge will start by the end of next year. The city has tried very hard to ensure that domestic construction companies will be offered the same chances as international ones during the tender to choose the company for its construction, but the standard quality of its construction will be very high.
The mayor also mentioned that a loan with such benefitial conditions has not been given to any other cities in the reason and has said that it is his personal goal to ensure that the construction of this bridge be completed by 2009.
The credit from the EBRD was taken to finance the construction of the bridge, while everything else will be built with the city's own finances, allowing a domestic tender will be announced to allow domestic companies to participate in its construction. He also reminded everyone that the investment in the accompanying components is almost equal to the amount for the bridge itself.
» Investor
City of Belgrade
» Location
Sava River, near to Ada Ciganlija
» Size
Unknown
» Deadlines
2008 start, to be finished in 2011
Visualisations of the South access road - Radnicka Street Intersection
Visualisation of the North access road - New Belgrade Intersection