Serbia has signed a €720mn agreement with Chinese construction giant PowerChina to start the first phase of the Belgrade metro project, in a significant step in the city’s long-awaited infrastructure development.

The Belgrade metro has been a recurring yet unrealised vision for nearly a century, often hindered by political indecision and funding challenges. Despite past efforts, including a 2014 memorandum of understanding (MoU) with France and a 2019 agreement with PowerChina, progress has remained slow.

Critics have dubbed the venture "Waiting for Metro", a symbol of the city’s lagging infrastructure. While the project promises transformative benefits for Serbia's capital, scepticism among residents persists due to repeated delays.

The contract with PowerChina, covering Lot 2 of the project’s first phase, includes the development and execution of works, preparatory activities and procurement of tunnel boring machines (TBMs).

The agreement was signed by Serbia’s Minister of Public Investments Darko Glisic, acting deputy mayor of Belgrade Radovan Kremic, director of Belgrade Metro and Train Andreja Mladenovic and Han Zhiping, a representative of PowerChina.

Glisic noted the urgency of the project, stating: "We believe that this project will truly bring long-term benefits not only to our city but also to the entire Republic of Serbia." He added that once operational, Line 1 would connect distant city areas, reducing travel time between Zeleznik and Mirijevo to just over 30 minutes.

The revised deadline for the completion of the metro’s first line is now 2030, two years later than the previous target of 2028, according to a November report by Nova Ekonomija. The government has allocated RSD6.5bn (€55.5mn) in the 2025 budget to support construction efforts.

Unlike previous agreements, this contract is set to take effect immediately, with financing for Lot 2 coming directly from Serbia’s budget. Officials hope this will expedite the project’s progress, with a planned implementation period of 45 months, followed by a two-year warranty phase.