Government gets 71m-euro loans for Pec road

The Kosovo government has written loan agreements with the European Bank for Reconstruction and Development, (BERZH).

The loan value is 71m euros, this loan will be invested in the construction of the Kyjevo Highway Zahaq. Finance Minister Bedri Hamza and EURZh Director for Transport Sue Barrett have signed this agreement on behalf of the government.

On behalf of the Government of Kosovo, together with the Bank for Reconstruction and Development, we signed the financial agreement worth 71m euros. The agreement, which is dedicated to financing one of the most important infrastructure and economic projects in our country. It's about funding the Pristina-Peaj road, namely, the Kijevo- Zahaq segment, which will be a road that connects a large part of Kosovo territory with the capital with Pristina, with Pristina airport édem Jasharı, where it gives Kosovo access to international corridors and links Kosovo with Montenegro, also with the 6th route towards Skopje large with other international corridors<1>, Hamza said.

He has also indicated the value and terms of the contract, which according to him will be favourable, as it will be 1 per cent interest rate and that the loan will have a 12-year deadline.

“We today signed the agreement on a project that amounts to 193m euros. The funding components of this project are. 71m euros from the EBRD, 80m euros from the European Investment Bank that we are in negotiations, but almost final...38m euros will be financing from the Government of Kosovo. 3.2 million is grant money thanks, from the investment frames of the Western Balkans, and 600 thousand euros are from the BERZH. The loan is under extremely convenient conditions where the interest rate is 1 per cent plus Eurobot. Maturity is 12 years old and three years are breissà period”, Hamza said.

According to him, it is a loan for financing a project that, according to him, will contribute to economic development and create good conditions for businesses as well.

And, Minister of Infrastructure, Pal Lekaj, said there will be no extensions of this project.

There will be no extensions, no obstacles to the development of this project that is of particular importance, and we will end it at the earliest possible time and remove it from the map, this segment of the Pristina-Peja highway. Which has lasted about 10 years”, Lekaj said.

EURZh Director for Transport Sue Barrett said he will continue to support Kosovo Government in financial support.

The signing of today's agreement implies that the IBRD has signed the third agreement in Kosovo's road sector. Loans in the road sector have already reached the level of 120m euros. We are satisfied with this level of agreement we will continue to support the financing of infrastructure projects in Kosovo“, Barrett said. /Indesksonline/