The World Bank’s Board of Executive Directors approved three loans in the amount of 225.7 million euros supporting the Government of Serbia’s efforts to improve its management of public expenditures, to make energy and transport public utilities more efficient and financially sustainable, and to advance the healthcare of its citizens.
The first operation, the Second Public Expenditure and Public Utilities Development Policy Loan (PEPU DPL 2), in the amount of 160.6 million euros, supports the Serbian Government’s multi-year effort to raise the efficiency and effectiveness of public spending as well as the transformation of the energy and transport sectors.
A part of this loan will be used to support reforms in the railway and road transport systems. The goals are to reduce direct budget operational support to the railway companies from RSD 13.5 billion (113.7 million euros) in 2015 to RSD 11 billion (92.6 million euros) in 2018, and to raise labor productivity and improve asset utilization. The rightsizing of the labor force should reduce the annual wage bill of the railway companies in 2018 by 25%, relative to that in 2015.