Appendix 1
APPENDIX 1
Project Description
| LD | 1981 ADD 2 (2026) | ||
| Borrower | Republic of Serbia | ||
| Loan Type | Public Sector Financing Facility - PFF | ||
| Total Loan Amount | EUR 510 000 000 composed of: | ||
| Initial Loan in a total maximum amount of EUR 200 000 | |||
| 000 | |||
| Addendum No. 1 Loan in a total maximum amount of EUR | |||
| 200 000 000 | |||
| Loan in a total maximum amount of EUR 110 000 000 | |||
| Approval by the | LD 1981 ADD 2 (2026) approved on 16th March 2026 | ||
| CEB’s Administrative Council |
I.
| Sector(s) of action | Health and social care | ||
| Planned Works/Sub-projects | Reconstruction and renovations of healthcare and | ||
| social care facilities across Serbia | |||
| Location | Across Serbia | ||
| Final Beneficiaries | Citizens across Serbia and the region | ||
| Project Total Cost | EUR 767 500 000 | ||
| Financing Plan | |||
| Schedule of Works | 2019-2028 | ||
| Closing Date | 31 December 2028 |
II.
| The CEB finances projects concerning health and | |
| social care and related infrastructure in order to | |
| foster healthy lives and well-being by ensuring | |
| access to high-quality, affordable healthcare for all. | |
| To be eligible to CEB financing, private | |
| establishments and infrastructure must be approved | |
| by the public health authorities and in compliance | |
| with the criteria established for this type of | |
| establishment. | |
| The CEB can finance projects concerning health, | |
| social care and related infrastructure or services | |
| such as: | |
| 1. Construction and/or rehabilitation of: | |
| i. public hospitals; | |
| ii. public medical service infrastructure; | |
| iii. specialised centres dedicated to assisting |
III. Eligibility Criteria
| vulnerable and dependent populations; | ||
| iv. nursing homes for the elderly and welfare | ||
| centres, including housing for elderly people who | ||
| are still independent; | ||
| v. health-related research and development | ||
| facilities. | ||
| 2. Adaptation of such premises to facilitate access | ||
| for persons with reduced mobility | ||
| 3. Training and support programmes in favour of | ||
| persons with disabilities | ||
| 4. Training of medical and sociomedical specialised | ||
| staff. | ||
| 5. Within the framework of health projects, | ||
| financing can be also granted for basic | ||
| infrastructure such as water supply and | ||
| wastewater systems and facilities, solid waste | ||
| collection and treatment facilities, including | ||
| hazardous waste, as well as for electricity and gas | ||
| supply systems, IT infrastructure and | ||
| communication facilities (such as telephone, | ||
| internet, cable, etc.). | ||
| Eligible Costs | The investments cost eligible for CEB financing include: | |
| The preparatory surveys or studies (technical, | ||
| economic or commercial, engineering, | ||
| environmental and social impact assessment and | ||
| management plans), the technical supervision of | ||
| the Project and other Project-related professional | ||
| services. These costs should not exceed 5% of the | ||
| total cost of the Project, unless justified. | ||
| The acquisition or preparation of land that the | ||
| Borrower can demonstrate is directly linked to | ||
| the Project’s implementation, at its purchase | ||
| price, unless it has been donated or granted. | ||
| Construction/renovation/modernisation or | ||
| purchase of buildings directly linked to the | ||
| Project. Purchases of buildings shall correspond | ||
| to eligible sectors of activity defined in the NACE | ||
| nomenclature of the European Union. | ||
| The installation of basic infrastructure, such as | ||
| sewerage, water supply, gas supply, electricity | ||
| and telecommunications networks, waste |
| disposal and waste water treatment, roads, etc. | ||
| The purchase of materials, equipment and | ||
| machinery, including IT equipment and software, | ||
| as well as the related costs linked to the training | ||
| of staff. | ||
| Technical assistance to support the | ||
| implementation of the Project. | ||
| Contingencies for unanticipated costs (technical | ||
| and/or price increases) can be financed by the | ||
| CEB. These represent financial coverage for | ||
| unforeseen changes in the quantity of works | ||
| required, or of unit prices, in the type and | ||
| quantity of equipment to be purchased or in the | ||
| method of carrying out the Project. These | ||
| contingencies may represent up to 10% of the | ||
| total cost of the Project. The percentage of | ||
| contingencies may be higher if justified during | ||
| appraisal. | ||
| Cost related to professional/vocational training | ||
| and public awareness-raising campaigns may be | ||
| eligible for CEB financing taking into account their | ||
| objectives within the framework of the Project. | ||
| The loan cannot cover staff costs (wages and | ||
| salaries and other related benefits, such as | ||
| pension payments), financial charges and non- | ||
| cash items, such as depreciation. Such costs may | ||
| however be considered eligible when they relate | ||
| to project management or technical assistance | ||
| required for project preparation and | ||
| implementation. | ||
| Financial costs (payment and/or refinancing of | ||
| debts, interest charges, acquisition of interest in | ||
| the capital of an enterprise, etc.) or financial | ||
| investments cannot be included in the estimated | ||
| cost of the Project and cannot be financed by the | ||
| CEB. | ||
| VAT and other tax-related costs can be | ||
| considered as eligible costs if they are non- | ||
| deductible and non-refundable for the Borrower. | ||
| Specific Conditions | 1. Prioritization of investments: | |
| Should facilities not yet included in the current list of | ||
| investments be proposed for financing under the |
| Loan, the Borrower through the PIE shall provide | ||
| the CEB with the criteria applied for selection of such | ||
| new facility(ies). These criteria shall be derived from | ||
| a prioritisation exercise taking into account | ||
| epidemiological, demographic, economic and | ||
| construction factors. The eligibility of such new | ||
| investments, including compliance with the | ||
| above‑mentioned selection criteria, as well as the | ||
| applicable procurement procedures, may be verified | ||
| by the CEB through an ex post review, without | ||
| prejudice to any other rights of verification provided | ||
| for under this Agreement. | ||
| 2. Procurement risk register | ||
| The Borrower through the PIE shall establish and | ||
| maintain, as from the signature of this Agreement, a | ||
| procurement risk register covering procurement | ||
| activities carried out under the Project (including the | ||
| Project and Sub-projects financed under the Original | ||
| Agreement, the Addendum No. 1 Agreement and | ||
| this Agreement). The procurement risk register shall | ||
| be updated without delay upon the identification of | ||
| any procurement risk or any change to an existing | ||
| procurement risk. Any modification to the | ||
| procurement risk register shall be promptly | ||
| communicated to the CEB, and, in any event, the | ||
| updated procurement risk register shall be shared | ||
| with the CEB as part of the Progress Reports. | ||
| 3. Capacity building and training | ||
| The Borrower through the PIE shall ensure that staff | ||
| involved in the implementation of the Project | ||
| regularly participate in training activities in the areas | ||
| of procurement, integrity and sustainable | ||
| procurement. The Borrower shall promptly inform the | ||
| CEB of any such training delivered, including | ||
| information on the topics covered and participants, | ||
| and shall, in any event, include such information in | ||
| the Progress Reports. | ||
| 4. Compliance updates | ||
| The Borrower through the PIE shall promptly inform | ||
| the CEB of any procurement appeals, contract | ||
| disputes, and any integrity-related incidents or | ||
| allegations arising in connection with the Project, as | ||
| soon as any such event occurs and, where | ||
| applicable, as soon as any new material information | ||
| in relation thereto becomes available. All such | ||
| events and any subsequent material developments | ||
| shall, in addition, be systematically reported in the |
| Progress Reports. | ||
| 5. Health and safety (H&S) inspection | ||
| The Borrower through the PIE shall arrange for at | ||
| least one independent health and safety (H&S) | ||
| inspection per year for each Sub-project construction | ||
| site financed under this Agreement, covering H&S | ||
| documentation, on-site conditions, and management | ||
| systems. Such inspection could be conducted either | ||
| by an independent H&S specialist contracted by the | ||
| Borrower or the Borrower’s internal supervision | ||
| engineer (if suitably qualified). The Borrower shall | ||
| submit an annual health and safety report to the | ||
| CEB, including information on inspections | ||
| undertaken, compliance status, training provided, | ||
| and any incidents or accidents. |
| The planned investments under the extended PFF are | |
| expected to generate significant social benefits across the | |
| Serbian healthcare system, improving the environment in | |
| which patients receive care -- from primary healthcare | |
| centres to highly specialised medical institutions. | |
| Families, healthcare professionals and medical students | |
| will all benefit from upgraded, better‑equipped and more | |
| functional facilities. The project will strengthen the | |
| availability and quality of healthcare for a large share of | |
| the population. It will also enhance the safety and | |
| reliability of clinical services through renewed | |
| infrastructure and contemporary diagnostic and | |
| therapeutic equipment. |
IV. Social impact