Serbia's Ministry of Construction and China Road and Bridge Corporation (CRBC) agreed on February 5 on a €3.2bn project to improve waste utilities and processing in Serbia, a key condition for its accession in the European Union.

Serbia, an EU membership candidate and one of Europe's most polluted countries, needs to spend billions of euros to clean up the environment and regulate carbon emissions before it joins the bloc.

Under the agreement CRBC will design and develop sewers and sewage processing plants in 65 municipalities and overhaul six regional landfills in line with EU regulations, said the ministry on its website.

The agreement was signed by Serbia's Minister of Construction, Transport and Infrastructure Tomislav Momirovic and the director of China Road and Care Corporation Zhang Xiaoyuan.

"This project is envisaged by the programme Serbia 2020-2025 and was initiated by President Vucic and the government of the Republic of Serbia with the intention of Serbia boldly stepping into the future and creating a modern, functional state based on fiscal consolidation in which we will have the most modern roads, railways, digital highways, but also an environmentally safe environment in which we live,” said Momirovic.

The contract would allow a number of municipalities and cities in Serbia to solve decades-long problems related to the treatment of waste water and processing and treatment of solid waste, said the ministry in the statement.

Under the deal, projects must be completed within five years after receiving construction permits. 49% of all subcontractors must be from Serbia.