Works to modernize and reconstruct the Belgrade-Budapest rail line started on Tuesday on the 34.5km stretch between Belgrade and Stara Pazova.

The job, worth USD 350 million, went to Chinese companies China Railways International and China Construction Company.

The plan is to complete this section within three years, while the entire USD 2.9 billion Belgrade-Budapest high speed rail should be done in six years, Beta has reported.

The modernization of the Belgrade-Budapest railway is the first cross-border project within the China-Central and Eastern Europea cooperation initiative, and is being jointly implemented by Serbia, Hungary and China.

The total value of the project in Serbia, up to the Hungarian border, is about US 2 billion.