China Machinery Offers to Build $704 Million Belgrade Bypass

March 12 (Bloomberg) -- China Machinery Engineering Corp. offered to complete a highway around the Serbian capital that would be financed from a Chinese credit line for infrastructure projects in central and eastern Europe.

The Chinese builder may sign a preliminary agreement with the Serbian government in about 10 days for two sections needed to complete the Belgrade bypass, Serbia’s Transportation Ministry said in an e-mailed statement after talks with the company’s executives in Belgrade today. The work is estimated at 540 million euros ($703 million).

“CMEC is interested to secure the money for realization of the project from the Chinese development fund” which is worth about $10 billion, the Serbian ministry said in the statement, adding that construction of one of the sections may begin in early 2014.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net