Study On Economic Partnership Projects in Developing Countries in FY2007
Study On Economic Partnership Projects in Developing Countries in FY2007
of SERBIA
SUMMARY
March 2008
The City of Belgrade is responsible for the planning, construction and maintenance of the City
Ring Road Project, and the Land Development Public Agency of Belgrade is in charge of
implementation of the project.
The target year for completion of the Belgrade City Ring Road Project is 2014. The total length
of the planned City Ring Road is approx. 55.8km (average radius of 9km). A total length of
approx. 49 km, excluding part of the Novi Belgrade area (approx. 6.8km), is scheduled for new
construction (38.4km) or improvement (10.6km). The City of Belgrade has estimated the total
cost for the construction and important sections to be € 560 million. Figure 1 shows a plan map
of Belgrade City Ring Road.
The financing for the new construction section is arranged as follows: For the construction of
the Danube-crossing road bridge section included in the SMT (Spoljne Magistralne Tangente,
meaning Outer Trunk Tangent in English), a request by the City of Belgrade for a yen loan has
been confirmed. The Inner Semi-Ring Road (ITRR) includes the construction of a bridge across
the Sava River (a bridge to carry both automobile traffic and the urban railway), for which finance
from the European Bank for Reconstruction and Development (EBRD) has been arranged. It is
planned for the North Tangent (NT), running along the northern contour in the Belgrade City
Urban Plan, to be constructed with funding by the city itself.
In addition to the Danube Crossing Bridge (the New Bridge) to be built in this project with
financing from a yen loan, another is being planned for the NT Zemun area. However, taking
into consideration the effect of the alleviation of urban traffic congestion, expansion of the traffic
capacity of the significantly aged Pancevo Bridge, and the necessity for large-scale improvement
of the exixting Pancevo Bridge in the future, the City of Belgrade is giving high priority to this
New Danube Crossing Bridge Construction Project, in line with the planned SMT route.
North Tangent (NT)
Highway E75 (in-service) 5
6 5
Highway E70 (in-service)
6a
7
New Belgrade Port (Planned)
Highway E70 (in-service)
7a
4a
1
3
2
Freight Railway Junction
Highway E75 (in-service)
Planned improvement section
Planned construction section
Planned construction section
Constructed (partly under const.)
On-going section EBRD finance of EURO 70 million for the construction of the New Bridge over the Sava River
The specific examination of the SMT project started in 1987. The latest Belgrade Master Plan
2021, established in 2003 after confirmation of the importance of the SMT project, adequacy of
the route and location of the bridge across the Danube River, basically follows the recommended
plan established in the 1980s.
The planned road of the SMT project is a trunk road about 11 km in total length, which it is
planned will run north-south on the eastern border of Belgrade and constitute part of the Belgrade
City Ring Road.
A section about 3.3 km in length from the starting point is planned as a road bridge to be
constructed across the Danube River. On the left bank of the Danube River, the road is planned
to provide access via a junction to the European Highway E70 currently in service. At the
starting point, the road will connect to the planned road NT and consequently to the Belgrade City
Ring Road. The road will also provide access to the New Belgrade Port (to which the functions
of the existing Belgrade Port will be transferred by 2025), which is currently undergoing a
pre-feasibility study. On the right bank of the Danube River, the road is planned to provide
access via a junction to the Visnjicka road currently in service (which will be partially widened in
the SMT project).
The plan for the remaining section, about 7.7 km in length, which passes through an undulating
hilly terrain, adopts a longitudinal incline of 6%. At the endpoint, the road will connect via a
junction to the European Highway E75 currently in service. The City of Belgrade is currently
drawing up a preliminary design for these sections, which will be completed in December 2007.
This preliminary design will also include the plan and longitudinal profile for the roughly 3.3
km-long section at the starting point.
Access point
Access point
Junction point Junction
Access point
Junction i t
Access point
Highway E70 (in service)
Visnjicka (in service) Highway E75 (in service)
Belgrade currently suffers from chronic traffic congestion, which is a major obstacle to economic
activities and nation life. The completion of a bridge in this project will allow diversion of the
traffic that currently passes through the downtown area, because the bridge will form part of the
City Ring Road. In particular, the diversion of heavy-duty and dangerous vehicles will greatly
contribute to the improvement of nation life and the environment by alleviating traffic congestion
and improving air quality and safety downtown.
(2) Rehabilitation and enhancement of the function allowing traffic across the Danube River
At present only the Pancevo Bridge, which is very old and significantly damaged, connects the
downtown area and the northern part of Belgrade across the Danube River. In the near future, the
volume of traffic is expected to exceed the capacity of the bridge. If the bridge were to fail and
become unusable, Belgrade would be cut in two by the Danube River, causing immeasurable
impact on nation life and physical distribution. When the new bridge is completed, there will be
two bridges across the Danube River, stabilizing physical distribution over the Danube River.
While the large-scale reinforcement and repair of the aging Pancevo Bridge is being carried out,
traffic will be smoothly diverted via the New Bridge. In the case of a disaster, the New Bridge can
serve as an alternative route.
Belgrade is located in the center of the Balkan region and serves as a hub for traffic; it serves as
an important base for physical distribution for neighboring countries such as Greece, Bulgaria,
Romania and Hungary, as it is there that water transport on the Danube River connects with the
highway called the European Corridor. In addition, a freight train yard and an international airport
are also located close to the downtown area, so greater economic development with a control of
emissions of Carbon Dioxide (CO2) can be expected from the provision of access to the water
transport base on the left bank of the Danube River and from the modal shift in the traffic networks
which will be developed in the future through the implementation of this project.
The financial condition of Belgrade and Serbia have been greatly improved since the lifting of
the economic sanctions. Recently, an increasing number of projects is being financed by
investment from Europe and Japan. The implementation of this project will improve access to
neighboring countries and surrounding areas, which is expected to improve the investment
environment and lead to the reconstruction of the industrial infrastructure and lead to the correction
of the gaps in income between various areas by activated the distribution among the southern part,
the central part, and the northen part where a income gap is large. In particular, the realization of
the STEP yen loan and the introduction of Japanese technologies will not only contribute to
meaningful technology exchange but also result in the expansion of the Japanese market share in
Serbia and surrounding countries, and what is called "aid with a visibility.", which will
conspicuously remain in the future.
2. Basic Policies for Determining the Content of the Project
The JETRO study team confirmed the following through meeting at the related organizations.
3 Land Acquisition
3-1 Danube Crossing Bridge
Forming Parcels and Land Acquisition Program
Land Acquisition
3-2 SMT Road
Forming Parcels and Land Acquisition Program
Land Acquisition
3-3 Visnjicka Street
Forming Parcels and Land Acquisition Program
Land Acquisition
4 Preliminary Design
4-1 Danube Crossing Bridge
Tender and Agreement
Preliminary Design
4-2 SMT Road
Preliminary Design
6 Main Design
6-1 Danube Crossing Bridge
Selection of Consultant
Engineering Design
Tender Assistance / Selection of Contractor
6-2 SMT Road
Tender and Agreement
Main Design
Technical Supervision
7 Construction Permit
7-1 Danube Crossing Bridge
7-2 SMT Road
7-3 Visnjicka Street
€ Dollars
Japanese ¥
Item (Thousand (Thousand Remarks
(Thousand ¥)
EUR) US$)
Construction Costs 140,381 22,983,000 190,953
Works costs
The economic internal rate of return (EIRR) is 7.34% and this is higher than the set social
discount rate of 7%. As a result, the net present value is € 9.83 million and the present value of
the total benefit during the life of this project exceeds the present value of the project expenditure,
and the cost benefit ratio is 1.07.
The change in the EIRR is studied by fluctuating the costs and benefits of this project by 30%
each. As shown in Table 3, the EIRR changes by an almost constant fraction for the project cost
and benefit variations and is considered to be stable against the variation risk.
3.3 Result of the comparison of alternative measures and reasons for the selection
There are two possible plans for a road facility to cross the Danube River, which is about 2km
in width and serves as a waterway: a bridge plan and a tunnel plan. The bridge plan has been
selected for the following reasons:
- If the tunnel plan is adopted, the route on the downtown side (right bank) will encounter a
mountain soon after crossing the river. Even if the longitudinal slope is set to 6%, the tunnel
length will be about 3.6km, about 1.6 times longer than the bridge plan, and therefore
uneconomical. The construction cost will be about 1.8 times higher than the bridge plan
adopted in this project.
- If the tunnel plan is adopted, the junction to the downtown side cannot be connected to an
existing road as in the bridge plan, resulting in poor access to the downtown area.
Furthermore, the installation of sidewalks will be difficult.
- If the longitudinal incline is set to 6% to shorten the tunnel length, the facility for exhaustion
will become large and therefore uneconomical.
(2) Bridge location
Project location
winter.
Plan 1
Construction: No problem
no problem
no problem
Plan 3
Construction: No problem
no problem
Maintenance: Inferior
no problem
no problem
Plan 6
Construction: No problem
SPM (Suspended 5.5 kg/day (96) (4% improvement) 5.7 kg/day (100)
Particulate Matter)
CO2 (Carbon Dioxide) 120 tons/day (96) (4% improvement) 124 tons/day (100)
The implementation period of this project from the detailed design to the completion of works
is planned as follows:
D/D and Tender Procedure 1st year 2nd year 3rd year 4th
WORK ITEMS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2
Detailed Design
Tender Prodcedure
Preparation
Temporary
Substructure
Main Bridge
(Extradosed) Superstructure
L=420m
Pavement
Substructure
Approach Bridge 1
L=640m Superstructure
Span=40m
Pavement
Substructure
Approach Bridge 2
L=560m Superstructure
Span=80m
Pavement
Substructure
Approach Bridge 3
L=670m Superstructure
Span=27.5~40m
Pavement
The bridges planned under this project include an extradosed bridge with corrugated steel sheet
webs and a PC box girder bridge also with corrugated steel sheet webs. The design and
construction of this kind of bridge require highly advanced techniques/materials,
machinery/equipment and work experience.
Many extradosed bridges have been constructed in Japan and it can be safely said that Japan
leads the world in the design and construction of extradosed bridges. While the PC box girder
bridge with corrugate steel sheet webs. originated in France, Japan made it a practical design
after many technical improvements, and has long experience of designing and constructing it.
Thus, it can also be safely said that Japan leads the world in this technology, as in the case of the
extradosed bridge. Japanese companies have a good chance of participation in this project
thanks to these technologies.
Inner cable
Himeyume Great
Hontani Bridge
Bridge
6. Map of the specific project implementation points in Serbia
Republic of Serbia
Corridor 10b
E75
E70
E70
Belgrade City
Corridor 10
E763
E75
Corridor 10c
E80 E80
E75
(in service)
E70
(in service)
Pancevo Port
Danube River
Sava River
E75
(in service)