Serbia Infrastructure Investment

In December 2019, The Serbian Government announced the new National Investment Plan, allocating approximately $13.5 billion for major development projects to be completed by 2025.  Most of the funds will go to infrastructure projects, including road, rail, air, and water upgrades, which will provide opportunities for U.S. firms in these areas.

Serbia, with a population of 7 million, is the largest and most prosperous economy in the West Balkans, serving as a regional hub and springboard for companies to access the larger regional market. In 2019, Serbia achieved GDP growth of over 4 percent – reaching 6.1 percent growth in the 4th quarter, among the highest in the world – and the government is using its strong fiscal position to make aggressive investments into infrastructure and digitization. Serbia is in the gradual process of accession to the EU and receives substantial EU development funds.

Infrastructure development has been a long-standing priority of Serbia. With the shared interest of bringing in more U.S. companies in this burgeoning sector, in 2018, the United States and Serbia signed a Memorandum of Understanding (MOU) on Cooperation in Infrastructure Development in Serbia.  Following this MOU, U.S. firm, Bechtel, signed a roughly $1 billion contract with the Serbian Government to design and construct 112 km of highway in central Serbia.  Construction began in February 2020 and is expected to be completed by the end of 2022. 

The Serbian government has identified other projects that may be of interest to U.S. companies in design, construction, building materials, road and railway equipment, as well as other related industries.  These projects offer an opportunity for U.S. companies looking to expand their export portfolio and enter the Serbian market.  However, it is important to note that these projects are in different stages of development, from preliminary planning to announced tendering or direct negotiations.

Key projects include the Sumadija Corridor/Highway Vozd Karadjordje, Serbia-Bosnia rail modernization, and the Smederevo Port expansion. The Sumadija Corridor is approximately 220km with an estimated value of over $2 billion. Upgrading the railway between Serbia and Bosnia & Herzegovina is of national and strategic importance for both countries; the project includes reconstruction and modernization of the railway for electric traction ad for train speeds up to 120 km/h, the provision of electronic signaling devices to railway, station and crossings, of stable electric traction plants for the entire railway, and potential reconstruction of tunnels and bridges. The Serbian government is looking to upgrade the terminal for bulk and general cargo for the Smederevo Port, with a total value of roughly $106 million, more than half of that amount is required for the construction of port infrastructure.

For an extensive list of infrastructure projects, please contact CS Belgrade: officebelgrade@trade.gov