TDA Provides $500,000 To Support EBRD Road Loan in Serbia

The U.S. Trade and Development Agency (TDA) signed a $500,000 grant today with the Roads Directorate of the Republic of Serbia to examine investments in its road sector. This grant will provide the technical assistance and due diligence for a €76 million road sector loan from the European Bank for Reconstruction and Development (EBRD), which was signed concurrently with the TDA grant. This assistance marks a continuation of TDA's commitment to supporting the development of roads infrastructure in the region. In a signing ceremony held at the Palace of the Federation, the grant was signed by the U.S. Ambassador to Yugoslavia, Mr. William D. Montgomery, and Mr. Tihomir Timotijevic, Director of the Serbian Roads Directorate.

The technical assistance will be directed at restructuring the roads sector in Serbia, with the main focus being on road financing and road planning. There is currently a lack of working systems for collecting, storing and using data and information about the road network. The establishment of updated institutional tools and mechanisms will encourage better planning, more transparent procurement and a gradual increase in the amount of road tolls, fees and taxes that are allocated to supporting the road system.

This three-phase study will assist the Roads Directorate in producing a five-year road plan for national roads, based on up-to-date network information and improved information management systems. Successful completion of the study is a requirement for implementation of the rehabilitation program loans provided by the EBRD. The Roads Management and Recovery Plan will form the basis for rehabilitation.

The U.S. Trade and Development Agency promotes American private sector participation in developing and middle-income countries, with special emphasis on economic sectors that represent significant U.S. export potential. By funding various forms of technical assistance, training grants, feasibility studies, orientation visits, and business workshops, TDA helps American businesses compete for infrastructure projects in emerging markets. In addition, the agency promotes capacity building initiatives and supports U.S. government trade, economic policy and development objectives around the world.

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