The cost of the railway modernization project between Novi Sad and Kelebija has risen by approximately $87 million compared to the originally contracted price, according to an annex to the contract between Serbia and China. This information was made public today on the Serbian government’s website, following a series of protests and student blockades across the country. The release came a day after President Aleksandar Vučić promised that the details would be disclosed.
Annex 4 of the contract, signed on March 15, 2024, between the Government of Serbia, Serbian Railway Infrastructure, and the Chinese consortium (China Railway International and China Communications Construction Company – CRIC/CCCC), reflects an additional $52.3 million in costs. This annex details the extra works included in the cost increase, as reported by Beta and Nova Ekonomija.
The price increase is not limited to Annex 4. Prior annexes also contributed to rising costs. A document from Serbian Railway Infrastructure, dated March 8, 2024, outlines previous cost increases. Annex 1 set the price table, while Annex 2 introduced a $6.5 million increase for “subsequent works.” Annex 3 added another $28.1 million to the project’s total cost. In total, the price of the project has grown by $86.9 million through Annex 4, finalized in March 2024.
The original contract, signed on May 28, 2018, between the Serbian government, Serbian Railway Infrastructure, and the Chinese consortium, had a price of $1.16 billion for the modernization of the Hungarian-Serbian railway from Novi Sad to Subotica and the state border. The project is funded by a loan from the Chinese Bank, and the price has been subject to adjustments as per the contract.
The project has faced additional scrutiny following a tragic incident at Novi Sad Railway Station on November 1, when a concrete canopy collapsed, killing 14 people and injuring several others. This tragedy led to protests demanding accountability, with the resignation of ministers Goran Vesić and Tomislav Momirović, who were responsible for the transport department at the time.
