Uvod
EXECUTION COPY
(Operation Number 53846)
LOAN AGREEMENT
(Pambukovica Dam Project)
between
THE REPUBLIC OF SERBIA
and
EUROPEAN BANK
FOR RECONSTRUCTION AND DEVELOPMENT
Dated 9 April 2026
TABLE OF CONTENTS
ARTICLE I - STANDARD TERMS AND CONDITIONS; DEFINITIONS ......................... 2
Section 1.01. Incorporation of Standard Terms and Conditions ........................... 2
Section 1.02. Definitions ..................................................................................... 2
Section 1.03. Interpretation ................................................................................. 3
ARTICLE II - PRINCIPAL TERMS OF THE LOAN ........................................................ 3
Section 2.01. Amount and Currency .................................................................... 3
Section 2.02. Other Financial Terms of the Loan ................................................ 3
Section 2.03. Drawdowns ................................................................................... 4
ARTICLE III - EXECUTION OF THE PROJECT ............................................................ 4
Section 3.01. Other Affirmative Project Covenants .............................................. 4
ARTICLE IV - SUSPENSION; ACCELERATION; CANCELLATION .............................. 5
Section 4.01. Suspension ................................................................................... 5
Section 4.02. Acceleration of Maturity ................................................................. 5
ARTICLE V - EFFECTIVENESS ................................................................................... 6
Section 5.01. Conditions Precedent to Effectiveness .......................................... 6
Section 5.02. Conditions Precedent to First Drawdown ....................................... 6
Section 5.03. Conditions Precedent to First Drawdown under Schedule 2 Category 1 ..................................................................................... 6
Section 5.04. Legal Opinions .............................................................................. 7
Section 5.05. Termination for Failure to Become Effective .................................. 7
ARTICLE VI - MISCELLANEOUS ................................................................................. 7
Section 6.01. Notices .......................................................................................... 7
SCHEDULE 1 - DESCRIPTION OF THE PROJECT ................................................... 11
SCHEDULE 2 - CATEGORIES AND DRAWDOWNS .................................................. 12
LOAN AGREEMENT
AGREEMENT dated 9 April 2026 between THE REPUBLIC OF SERBIA,
represented by the Minister of Finance, on behalf of the Government as
representative of the Republic of Serbia (the "Borrower") and EUROPEAN BANK
FOR RECONSTRUCTION AND DEVELOPMENT (the "Bank").
PREAMBLE
WHEREAS, the Bank has been established to provide financing for specific projects to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in certain countries committed to and applying the principles of multiparty democracy, pluralism and market economics;
WHEREAS, the Borrower intends to implement the Project as described in Schedule 1 which is designed to assist in constructing and operating of a multipurpose dam and reservoir infrastructure at Pambukovica village, Western Serbia, to enhance flood protection, enable future irrigation development, and improve climate resilience in the Kolubara River basin;
WHEREAS, the Project will be carried out by “Srbijavode” d.o.o. (the "Project Entity") with financial assistance from the Borrower and with the participation of the Ministry of Agriculture, Forestry and Water Management of the Republic of Serbia, acting through the Republic Water Directorate of the Republic of Serbia (the
"Beneficiary");
WHEREAS, the Borrower has requested assistance from the Bank in financing the Project;
WHEREAS, the Bank (i) has arranged the following technical cooperation funds, on a grant basis, from: (A) the Austrian Municipal Infrastructure Fund, to assist the Borrower in conducting a gap analysis to assess the existing documentation for development of the Project against the requirements of the Bank’s Environmental and Social Policy, in an amount of up to EUR 64,262; (B) the Bank’s Shareholder Special Fund, to assist the Borrower in conducting an independent review of environmental, technical and social studies and associated documents for public disclosure for Category A projects, in an amount of up to EUR 232,200; and (ii) shall arrange the Bank’s Shareholder Special Fund or other donor funds to assist the Borrower in engaging an independent lenders’ advisor for environmental, social and technical matters, in an amount of up to EUR 1,600,000 million; and
WHEREAS, the Bank has agreed on the basis of, inter alia, the foregoing to make a loan to the Borrower in the amount of EUR 66,000,000, subject to the terms and conditions set forth or referred to in this Agreement and in the project agreement dated on or about the date hereof between the Project Entity, the Beneficiary and the Bank (the "Project Agreement", as defined in the Standard Terms and Conditions.
NOW, THEREFORE, the parties hereby agree as follows: