BELGRADE (Serbia), April 26 (SeeNews) – The European Investment Bank (EIB) said it signed a contract to extend a 45 million euro ($54.8 million) loan to Serbia and Montenegro Air Traffic Services (SMATSA).
The loan will finance an upgrade of the air traffic control system in Serbia and Montenegro, helping both countries to meet relevant EU regulations and advance their EU accession process in the field of air transport, the EIB said in a statement on Wednesday.
Moreover, the investments will increase the capacity of the system, improve safety and cost efficiency and enhance the air transport connectivity of the region, the EIB said.
The list of projects that will be financed through the loan includes the procurement of radar systems for the Belgrade Nikola Tesla International Airport, as well as the Besna Kobila and Vrsuta locations in Serbia and Montenegro, respectively, SMATSA said in a separate statement on Wednesday.
Moreover, SMATSA will use the financing to implement voice-to-ground and ground-to-ground voice communication system, as well as to build air traffic control towers at the airports of Belgrade and Nis.
The contract is part of the SMATSA Upgrade of System for Air Navigation (SUSAN) programme for the period between 2017 and 2021, worth a total of 118 million euro and financed from own funds of SMATSA, as well as loans from the EIB and the European Bank for Reconstruction and Development (EBRD).
($ = 0.8211 euro)