BELGRADE (Serbia), October 27 (SeeNews) – The World Bank’s Board of Executive Directors has approved a combined 124.9 million euro ($138.9 million) loan to Serbia in support of reforms of state-owned enterprises and highway construction works along Corridor X, the international lender said.
The World Bank will lend Serbia 89.8 million euro to help the authorities create an environment conducive to better quality jobs by reducing the role of the state in managing commercial enterprises the bank said in a statement earlier this week. The second loan is an investment in the amount of 35 million euro for the construction of the missing links of the Pan-European Corridor X highway.
The Second Programmatic State Owned Enterprises Reform Development Policy Loan (Second SOE DPL) is a continuation of support for reform of commercial state owned enterprises, the World Bank explained.
This programme supports specific measures in the following areas: accelerating the restructuring and divestiture programme for the Privatization Agency portfolio and selected state-owned enterprises (SOEs) operating in the commercial sector; strengthening the governance, regulatory and institutional framework, and monitoring and transparency arrangements for SOEs; and mitigating the social and labour market impact of the SOEs reform programme.
“Thanks to the dialogue and reforms taken forward during the preparation of the Second SOE DPL, the previously high burden that commercial state owned enterprises posed on the economy and on tax payers has been progressively reduced,” said Tony Verheijen, World Bank country manager for Serbia.“However, continuing the resolution of commercial state owned enterprises remains a critical factor to the success of government’s economic program and improved economic efficiency," he added.
Corridor X Highway Additional Financing Project will help Serbia to fully utilize its geographic position in the heart of the Western Balkans along Pan-European Corridor X highway. Building missing links will bring more transit traffic for Serbia and make contribution to the Serbian economy, the World Bank stated.
The funds will also finance improvement of roads network after disastrous floods which hit Serbia in 2014, removal of unexploded ordinance found along the alignments, and excavation and preservation of archeological sites.
“The support of these institutions will lead to increased efficiency and effectiveness of service delivery,” said Svetlana Vukanovic, World Bank task team leader for Corridor X Highway additional financing project. “Completing the Corridor X Highway, which is part of the EU TEN-T Corridor network, and improving the service delivery should provide a solid base for further improvement of regional connectivity and integration, trade exchange, and overall economic development”.
($=0.9151 euro)