The Morava Corridor Motorway Project consists of a greenfield 112 km dual-carriageway tolled motorway within a 900-meter right of way, located approximately 200 km south of Belgrade in a low-level floodplain running east-west along the West Morava River Valley. The project includes (i) above-ground structures such as interchanges, bridges, culverts, and overpasses/underpasses; (ii) a telecommunication network supported by power lines and communication cables to connect the telecom stations within the motorway and manage traffic through various traffic control, surveillance, and tolling systems; and (iii) river regulation works intended to protect the project and its surrounding areas from flooding.

In 2022 and 2023, MIGA provided Non-Honoring of Sovereign Financial Obligation guarantees to six international banks for their non-shareholder loans to the Government of Serbia to develop the Morava Corridor Motorway Project.

In July 2024, CAO received a complaint filed by a landowner from the city of Kraljevo, Serbia, raising concerns related to the lack of full expropriation of land and the adequate valuation of trees for compensation, and the project’s complaint handling process.

In August 2024, CAO found the complaint eligible and initiated an assessment. During the assessment, the complainant and the project implementer engaged directly, resulting in the resolution of the complainant's request for full expropriation of the complainant’s land. However, the parties did not agree to resolve the remaining issue regarding the valuation of and compensation for trees through a CAO-facilitated dialogue. In accordance with the CAO Policy, the case was transferred to CAO’s Compliance function in February 2025 for an appraisal of IFC’s environmental and social performance.

The Assessment Report is available in English and Serbian.

In June 2025, CAO completed its compliance appraisal with the decision that a compliance investigation was not merited. CAO's compliance appraisal did not conclude there were preliminary indications of  harm or potential harm related to compensation for trees on the expropriated land or the developer’s complaint handling procedures. CAO also found no preliminary indications of potential non-compliance with MIGA’s Environmental and Social (E&S) policy. As such, no plausible link could be established between the alleged harm and potential non-compliance by MIGA.

The Appraisal Report is available in English and Serbian.