1.  The Republic of Serbia (hereinafter called “Borrower”) has received financing from the International Bank for Reconstruction and Development (IBRD) (the “Bank”) and the Agency Francaise de Development (AFD) in the form of a loan (hereinafter called “loan”) toward the cost of the Serbia Railway Sector Modernization (SRSM) Project. The Ministry of Construction, Transport and Infrastructure (MCTI), an implementing agency of the Borrower, intends to apply a portion of the proceeds of this loan to eligible payments under the contract for which this Request for Bids is issued. For this contract, the Borrower shall process the payments using the Direct Payment disbursement method, as defined in the World Bank’s Disbursement Guidelines for Investment Project Financing.