Serbia, the City of Belgrade and PowerChina have signed the final major civil-works contract for the first phase of Belgrade Metro Line 1, moving the project from its main procurement stage into full-scale construction. The agreement covers Lot 3 of Phase 1, completing the principal civil-works contracting structure for the line’s initial 15.4-kilometre section. With around 11 kilometres of the route planned as bored tunnels, construction performance will increasingly depend on tunnelling, station interfaces, logistics and coordination between contractors.
Two tunnel-boring machines manufactured and tested in China are being transported to Serbia. The machines are expected to start excavation from opposite ends of the alignment. The newly signed contract sets a 60-month construction period, placing physical delivery at the centre of the project’s next stage.
Civil Works and Metro Systems
PowerChina is responsible for the main civil-works packages, while France-based Alstom holds a separate €915 million turnkey systems contract. Alstom’s scope includes automated trains, signalling, power supply, trackwork and other systems required for metro operations.
The division of responsibilities between major international contractors creates multiple technical interfaces. Tunnels and stations must ultimately connect with trackwork, rolling stock, signalling, power infrastructure and control technology under compatible technical and operational requirements. As construction advances, coordination between the civil and systems packages will therefore become increasingly important to the overall delivery schedule.
Cost Control Moves Into Focus
The project has previously been dominated by planning, financing, tendering and contract awards. The focus is now shifting toward measurable construction milestones, including excavation, station completion, utility relocation and systems installation. The value of the newly signed Lot 3 contract was not disclosed. At the same time, the wider metro programme represents one of Serbia’s largest urban infrastructure commitments. Design changes, construction delays or additional costs could therefore affect both the project itself and the wider public investment programme.
Serbia is also financing major investments in railways, roads, energy infrastructure and construction connected with Expo 2027, increasing demand for engineering expertise, project management capacity and contractors. The metro project is expected to require substantial quantities of concrete, steel, electrical equipment, construction labour and specialised engineering services, adding to demand across the broader infrastructure market.
Tunnelling and Station Construction
The move underground introduces risks that differ from those associated with surface infrastructure. Ground conditions, groundwater, existing utility networks and dense urban development can affect excavation rates and require changes to construction methods or designs. The tunnel-boring machines are intended to limit disruption compared with conventional excavation, but their output will depend on geological conditions and the effectiveness of supporting logistics.
Stations will represent another major construction interface. Their delivery requires coordination between underground structures, passenger access, ventilation, electrical equipment, signalling and existing urban utilities. Delays affecting individual station components could consequently influence subsequent systems installation and other activities. The separation between the civil-works contracts and Alstom’s systems package also means that the transition from physical construction to integrated railway systems will become an important schedule consideration.
Potential Effects on Belgrade’s Urban Economy
The metro investment could influence Belgrade’s property and commercial geography as stations improve access to areas currently more dependent on road transport. Improved public transport connections can concentrate retail, office and residential activity around transport nodes and potentially alter investment patterns in parts of the city. The broader economic impact will depend on the extent to which the metro improves mobility, eases congestion and expands access to employment across the capital.
Belgrade’s population and concentration of business activity have increased pressure on roads and existing public transport, strengthening the role of mass transit within the city’s infrastructure needs. With the signing of Lot 3, the main civil-works contracting structure for the first phase is now in place. The project’s next stage will centre on the delivery of tunnels, stations and the subsequent integration of trains, signalling, power and control systems within the planned 60-month construction period.
