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EU helps Serbian education system improvement

2010-07-01T03:55:00.001-07:00

Belgrade June 26. 2010. (Serbia Today) - The European Union will invest three million EUR to support programs that encourage greater inclusion of Roma children into the education system in Serbia, it was announced at the conference "Education for All". Conference in Belgrade was organized by delegation of the EU and the Serbian Ministry of Education. It was announced that 1.8 million will be invest through the project "Education for all", while the remaining 1.2 million will be used for school equipment. The money should be used during next two years. Through the project "Education for All" pedagogical assistants are trained to be "a link between

Belgrade’s pharmaceutical company Galenika has new plant

2010-07-01T03:52:00.000-07:00

Belgrade, June, 26. (Serbia Today) - On Monday The Galenika pharmaceutical company opened a new factory for the production of solid pharmaceutical products in which EUR 50mn has been invested, said reports. Prime Minister Mirko Cvetkovic said at the opening ceremony that the investments would enable the company to be competitive in the domestic market and in exports. Galenika General Director Nenad Ognjenovic said that the capacity of the new factory will be two billion tablets and 100 million capsules annually, and that the yearly value of the products will be EUR 100mn. Economy Minister Mladjan Dinkic said that the Serbian government has definitely given up from the privatization of Galenika after the tender has not reported any company that would have been stronger than Galenika itself.

Serbian market has perspective

2010-06-30T02:24:00.000-07:00

Belgrade, June 25. 2010. (Serbia Today) – About 80 foreign companies are showing great interest in investing in projects in Serbia, said on Tuesday the director of the Agency for Foreign Investments (SIEPA) Bozidar Laganin. He announced that this year will bring good news to Serbia with new investments and an increase in exports, and pointed out as an example recent fair in Algeria, which is Serbia’s largest business partner in Africa adding that there was great potential for Serbian export-oriented companies in that country. “Serbian construction and food production companies have had the most interest shown in them coming from Algeria”, said Laganin and added that Serbian company sold its exhibition pieces which were machines that are used in the paper industry Speaking of the automobile industry, the interest was participatory high when it came to the production of auto parts, and according to Laganin the Serbian government has recognized this sector as one of the most important in our economy. “The agency has received the possibility of additionally motivating foreign and domestic investors to enter into Serbian production factories, and every new job opening will be stimulated with EUR 10,000”, he said. Laganin said that as far as the macroeconomic situation in the country was concerned, “trends from the first quarter are encouraging, which show that there has been an increase in exports by 18 percent and an increase in imports of three percent.”

South Korea invest in Serbia

2010-06-30T02:22:00.000-07:00

Belgrade, June , 25. 2010. (Serbia Today) - South Korean Yura Corporation, which recently bought Zastava Elektro in Rača, will begin building another factory in Serbia. As B92 reported the company’s Director Lukas Nam has stated that they would start building a plant in the southern town of Niš to manufacture auto installations. The factory is expected to cover some 20,000 square meters, while the construction is expected to start in the first half of 2012. “I’m currently in negotiations with the government and the local self-government of the City of Niš about the possibility to realize a greenfield investment. The factory which will be built in Niš will be a lot bigger than the one in Rača.” “I can tell you that it will probably be even three times bigger. According to my business plan, at least EUR 15mn will be invested in the building and equipment,” Nam said, and added that 1,500 jobs would be created in this way.

China is donating MUP, VMA

2010-06-29T04:14:00.000-07:00

Belgrade, June , 24. 2010. (Serbia Today) - China will donate EUR 1.5mn to the Serbian Interior Ministry (MUP) and the Military Medical Academy (VMA), said finance Minister Diana Dragutinovic, after her meeting on Monday with a Chinese delegation headed by Deputy Minister and Director of the General Administration of Customs Sun Yibiao. The most important projects Serbia is discussing with China are the construction of the Zemun-Borca bridge, the Kostolac thermal power plant and the acquisition of machines for non-invasive checks at border crossings which will reduce smuggling. Serbian minister noted that there were no unresolved issues or problems in the economic cooperation between the two countries and thanked China for the USD 17mn in drugs and medical equipment it donated to Serbia after the 1999 NATO bombing.

Mrkonjic: Plan for infrastructure priorities

2010-06-26T03:30:00.001-07:00

Belgrade, June 22. 2010. (Serbia Today) - Infrastructure Minister Milutin Mrkonjić said that the plan for confirming traffic infrastructure priorities for the next ten years has been adopted. “General directions are related to basic forms of transportation—roads, railways, air and water. As far as roads are concerned, we are talking about Corridor 10 and Corridor 11,” Mrkonjić said. He told Radio Television Serbia there would be an adaptation of the ports through air travel, while Corridor 7, which is the Danube River, will be the main priority for water travel. “The most important fact is that in the coming ten years of the program for the development of Serbia, as far as infrastructure is concerned, we will be investing in between EUR 1bn and EUR 1.5bn annually,” Mrkonjić said. He added that some of the money would be secured from European and World banks, but that the rest would be secured by commercial assets. The meeting of the National Council for Infrastructure was held late on Friday and presided over by President Boris Tadić.

Austria invest in Serbia

2010-06-25T02:47:00.000-07:00

Belgrade, June, 21. 2010. (Serbia Today) Economy Minister Mlađan Dinkić announced that the pillar of the furniture industry in Serbia will in future be Austrian wood panel board producer Kronospan. He made the statement during the opening ceremony for the factory in Lapovo, central Serbia. Dinkić underlined that this was the second largest greenfield investment in Serbia. “Taking into consideration that we are able to realize duty-free export to markets that have over a billion consumers, including the market of the Russian Federation as of July 1, this plant will have an increasing strategic importance”, said Dinkić and announced the arrival of other foreign furniture production companies, primarily those based in Italy. Dinkić also mentioned the data that the factory employs 160 workers, while it is planned to employ about 300 people, and that about 2000 workers are employed in the procurement sector. He underscored that the situation in this poor municipality will improve, since Lapovo has an industrial zone located next to pan-European Corridor 10. “It is precisely due to this type of investments that Serbia recorded a five percent increase in industrial output in the first four months of 2010, and an 18 percent increase in export compared to the respective period in 2009”, Dinkić said.

Mrkonjic: Serbia will get new airline

2010-06-25T02:46:00.001-07:00

Belgrade, June 19. 2010. (Serbia Today) - Infrastructure Minister Milutin Mrkonjić announced recently that a new airline will be founded in the near future. The new company is supposed to take the role of Serbia's current national carrier Jat Airways. "We are in the final stages of establishing a new company. The basic idea is to keep Jat in business and the state still wants to have its own airline," the minister told reporters. The minister said the government is trying to find a partner who would purchase a share in Jat Airways. "If we are able to come to an agreement with someone who wants to buy a part of Jat, we will do so. If not, we will own the whole airline. One thing is certain - Serbia will have its own airline," Mrkonjić explained. Speaking about Belgrade's Nikola Tesla Airport, Mrkonjić said that the government still has not discussed whether to privatize the company. "The airport operates with a sizable profit, which flows into the state budget. The airport is a profitable and successful company with profits of some EUR 15mn," the infrastructure minister noted.

Mrkonjic is content with construction dynamics for Corridor 10

2010-06-22T03:35:00.001-07:00

Belgrade, June 16. 2010 (Serbia Today) - Infrastructure Minister Milutin Mrkonjić said that he is content, for the most part, with the dynamics in the construction of Corridor 10. He said that he would be visiting a different stretch of the highway construction every 15 days. Mrkonjić visited construction sites in the north, where work is currently ongoing on a bridge near Novi Sad and a by-pass route around Subotica is also being worked on. He talked to workers at the bridge, stating that this construction site in Beška, along with the ones in Kelebija and Horgoš, are the most busy currently, and commended the workers on the dynamics at which they are working, especially in the heat and with the problems of high water levels on the Danube River. Visiting work on the Horgoš-Novi Sad stretch of the highway, he called for work dynamics to increase and for two or three shifts of workers to be implemented. He said that the workers need to be paid regularly and to not have worry about delays, because the state secured enough money and is fulfilling all its promises. The work on the 110 kilometers of highway in the north began on April 27 and includes the stretch from Horgoš to the Hungarian border, the stretch of highway to Novi Sad, and the highway section between Kelebija and Subotica.

EIB to extend EUR 50mn loan for schools

2010-06-18T03:33:00.000-07:00

Belgrade, June 12, (Serbia Today) - Finance Minister Diana Dragutinovic and European Investment Bank (EIB) Adriatic regional executive Dominique Courbin signed an agreement worth EUR 50mn on Tuesday. The loan for education in Serbia is made for the period of 25 years, with a grace period of five years and free choice of interest rate modes, Dragutinovic announced after the signing of the contract at the Serbian Government. The loan is allocated for school modernization programs and represents a continuation of the project for improving the situation in schools signed in 2005. Dragutinovi stated that Serbia expects one billion euros from the EIB in 2010 . Funds from the loan will be earmarked for building new schools, eliminating the three-shift system of work which still exists in some schools in Serbia, and the reconstruction and upgrading of schools. Head of EIB Division for Slovenia, Croatia and Western Balkans Dominique Courbin highlighted the importance of the agreement for Serbia, since investing in primary and secondary schools will help the country's future economic development.

Israeli company to open spice factory

2010-06-15T02:55:00.001-07:00

Belgrade/Svilajnac, June, 11. 2010 (Serbia Today) - The Israeli company Green Only, which specializes in producing spices, will be open a factory in Serbia, it was announced on Monday. The equipment and factory are worth EUR 850,000. Since most of the work will be done manually, it is expected that Green Only will be employing more workers as it expands its expanding its capacities to 100 hectares of land. This will make Svilajnac the center for production of spices and vegetables in Serbia. Deputy Prime Minister Bozidar Djelic and Israeli ambassador Arthur Koll will be at the ceremony in the central town of Svilajnac. The ceremonial opening will also be attended by Agriculture Minister Sasa Dragin, officials from the Swiss embassy, and many local officials from Svilajnac. After the opening, Green Only will be organizing a presentation of its “Science Museum” project in the Svilajnac municipal.

Serbia to invest EUR 100mn in sports

2010-06-14T06:08:00.001-07:00

Belgrade June, 10, 2010 (Serbia Today) - Economy Minister Mladjan Dinkic announced on Friday that the state will invest EUR 100mn in the construction of sporting venues, including 10 football stadiums. The government passed the decision for the sports investments on Thursday, and Dinkic said that this will help the construction industry as well, which has had an especially difficult time during the economic crisis. “Based on this aid program, there will be hospitals, schools and sports venues built, because it is best to invest in places where we will have the most gains from as a society”, he said. He explained that the goal is that all Serbian football teams in the domestic premiere league should meet the conditions of the European Football Union (UEFA), which means that they must have reflectors so that night matches can be played. He said that there will be investments made in stadiums in Subotica, Novi Sad, Zrenjanin, Kragujevac, Pozarevac, Cacak, Smederevo, Krusevac and Nis.

Railways works protocol with Russia

2010-06-11T03:47:00.001-07:00

Belgrade, June, 08. 2010 (Serbia Today) - Serbia and Russia have signed a protocol for conditions of a Russian loan for reconstructing parts of the Serbian railway system, learns b92. The Russian loan is expected to be used for two major reconstructions—the railway from Valjevo to Loznica in the west of the country, and the Belgrade railway hub. But according to Serbian Railways Director Milovan Markovic, the realization of the loan will not come as soon as previously announced. All other plans will have to be put on hold until another arrangement, while the financial conditions of the Russian loan are expected to be made public in about two months. The deal will not only include the money, but also export business for Russian companies, according to sources. Talks about the financial part of the deal, deadlines for payments and interest rates, have not begun yet. The Belgrade railway hub is expected to need EUR 210mn, while the railroad from Valjevo to Loznica will need EUR 260mn worth of investments in order to be completed, according to estimates.

Serbia as a location for shooting films

2010-06-10T02:58:00.001-07:00

Belgrade, June, 07. 2010 (Serbia Today) – In the past nine months, Serbia has invited a number of foreign film producers, to scout sites and infrastructure for projects, according to the Association of Serbian Film (SFA). The total value of these projects exceeds 360 million dollars. In the past month, SFA and its members have negotiated more new foreign projects in excess of $100 million over the next year and a half. At the recent Film Festival and Market in Cannes, interest in Serbia among foreign producers was significantly higher than in the previous year, according to the SFA. SFA adds that this was contributed to by over 300 articles in international media about the first film directed by Ralph Fiennes in Belgrade. The SFA considered that Serbia has shown it can work on serious projects such as the just completed Coriolanus, and that it can simultaneously work on three foreign projects as it did in late 2009.

Tadic invites Austrians to invest

2010-06-05T03:04:00.001-07:00

Belgrade/Graz, June, 01, 2010 (Serbia Today) - President Boris Tadic said that Serbia is a stable and safe zone for investments and invited Austrian businessmen to invest in Serbia. During his one-day visit to Austria, Tadic conferred Wednesday with Styria Governor Franz Voves and a group of businessmen. After his meeting with Voves, Tadic said that Serbia was one of the first countries in Europe to start implementing anti-recession measures, which produced good results according to macro-economic indications. Serbia is a part of the European family of nations and membership in the European Union is a strategic goal it will not abandon, he said. Serbia has a great interest in cooperation with Syria given the latter's achievements in the sectors of energy, environment protection, innovation, metal processing industry, construction and transport.

Government suspended a tender for the Telekom sale adviser

2010-06-01T03:22:00.001-07:00

Belgrade May 25. 2010. (Serbia Today) - Serbian government decided to suspend a tender for the selection of an adviser in the sale of a portion of the state-owned shares in Telekom Srbija. Beta news agency reported that the only bid made by a consortium headed by Citigroup Global Markets was faulty. The government commission established that, by not signing the contract model, the bidder had not acted in accordance with the competition documentation, so the offer is formally considered faulty. The government also announced that the consortium would be urged to correct the technical part of its offer. Telecommunications Minister Jasna Matić announced that the government would engage in direct negotiations with the bidder. A press release on Thursday said the government had adopted a report by the commission for selecting the adviser, which assessed the technical part of the bid. The tender to select an adviser for selling state-owned shares in Telekom Srbija was published on April 12, and admitted bids from investment banks that in the last three years had at least one transaction from telecommunications companies from Europe, the Middle East or the Commonwealth of Independent States, worth more than EUR 500mn. The consortium led by Citigroup Global Markets was the only bidder. The government of Serbia owns 80 percent of shares in Telekom Srbija. The remaining 20 percent of shares is owned by the Greek OTE company, 30 percent of which belongs to Deutsche Telekom. The government made the decision to sell 40 percent of state capital in the company on March 26.

Turkish Airlines confirms interest in Jat Airways

2010-05-25T02:37:00.000-07:00

Belgrade, May, 21. 2010 (Serbia Today) – Company Turkish Airlines has expressed interest in buying Polish LOT and Serbian Jat Airways. According to Director Temel Kotil the company, which is 49% owned by the state is not interested in other companies in Eastern Europe other than LOT and Jat, and Turkish Airlines is negotiating with both. “We are only interested in LOT in Central Europe because it fits into our business model of creating the first European five-star air travel company,” he said for Polish daily Rzeczpospolita. “We have partner relations with Lufthansa and we have a portion of BH Airlines and in Austrian DO & CO Restaurants, and everything is developing according to our plans,” he said. He said that Turkish Airlines will be getting new aircrafts and that it plans on employing about 1,500 people this year, while most other companies are saving money and cutting flights and workers because of the crisis. Turkish Airlines is introducing 17 new destinations with the ambition to become the third most significant air travel company in Europe after Lufthansa and Air France-KLF.

EBRD will continue to support Serbia

2010-05-24T01:58:00.000-07:00

Belgrade/Zagreb, May, 20. 2010 (Serbia today) - The European Bank for Reconstruction and Development (EBRD) plans to invest about EUR 500mn in projects in Serbia this year. The EBRD Director for Serbia Hildegard Gacek announced that these funds will be used for infrastructure, energy, energy efficiency and agriculture projects, and to support Serbian companies. EBRD signed an agreement with Serbia at the beginning of this year for credit worth EUR 200mn, and she said that the plan is to top the record for financing given to Serbia this year. The record amount was EUR 425mn, given in 2009 to Serbia. “We are negotiating the investment of EUR 80mn in improving energy efficiency in small and medium-sized companies, a EUR 100mn credit for the railways, and credit for companies worth EUR 50-100mn,” said Gacek on Saturday at the EBRD General Assembly conference in Zagreb

Fiat is building new factory in Kragujevac

2010-05-22T03:10:00.000-07:00

Belgrade, May, 19. 2010 (Serbia Today) - By the end of this year new Fiat factory in Kragujevac will be finished with all production halls. ‘Fiat Serbia’ management announced that the installation of new machines is planned for the beginning of the next year. Belgrade daily Blic reported the new factory is scheduled to start working until the end of 2011 and shall employ 2,500 workers on the manufacturing of about 300,000 car units per year. The basic model shall be a car of B class. Construction of new ‘Fiat’ factory in Kragujevac is the biggest construction project in Serbia in the past 20 years since the old ‘Zastava’ car factory is unsuitable for the installation of new machines and technologies. In the course of this year, more than EUR 150 millions shall be invested in infrastructure and construction works. New ‘Fiat’ new factory will have the most contemporary world technology for production of cars. The huge area covered by former ‘Zastava car factory (200 hectares) purchased by ‘Fiat’ has more than three thousand works are working every day.

Cvetkovic : Waiting for the right price for Telekom

2010-05-21T05:31:00.001-07:00

Belgrade, May, 18. 2010 (Serbia Today) - The state's stake in Telekom Srbija will be sold only if the price and potential buyer are right, said Prime Minister Mirko Cvetković in the interview for Belgrade weekly NIN. “We will only sell Telekom if these two conditions are met,” Cvetković told, adding that the company cannot stay in state control and remain efficient. The prime minister added that these were the "last moments in which the ownership structure of the company can be changed, in order for it to be able to compete at a later time.” Cvetković noted that Norwegian company Telenor, which in 2006 entered the Serbian mobile telephony market, has also received a license for landline services and that it will become “a strong player we will not be able to match in a year or two.” “It would be wrong to wait for Telekom to begin losing its market position and value and then decide to sell it. Such a sale scenario would be condemned to failure,” Cvetković said. Speaking on how the money from the sale of the state's 40 percent stake would be spent, he said that regional roads that are important to Serbia strategically would be a priority, and that the money "must be spent in a transparent manner.” The tender for the sale is expected later this year. Cvetković also expressed optimism that the economic crisis was ending and that "better days await Serbia in the coming months.” He said that the average wage increased by almost ten percent in March, compared to February, and that the GDP figure had started to grow, along with exports. Cvetković said that unemployment still remains a major problem and that if the economic conditions exist for doing so, wages and pensions would be increased according to the inflation rate, "plus-minus one percent.”

Telekom Serbia is helping the most promising athletes

2010-05-20T02:29:00.000-07:00

Belgrade, May, 17. 2010 (Serbia Today) – On Thursday, Telekom Serbia signed an agreement with the Athletic Association of Serbia to provide financial support to Ivana Spanovic, Tatjana Jelaca and Mihailo Dudas. President of the Athletic Federation of Serbia Veselin Jevrosimovic expressed his thanks to Telekom. Serbian athlete Mihail Dudass said that he was glad that a company like Telekom wants to invest in athletes. General Manager of Telekom Branko Radujko emphasized that the company wanted to help more promising athletes. When asked how much money the company will give, Radujko said that "support was balanced.”

Tadic : Serbia to produce more food

2010-05-20T02:27:00.001-07:00

Belgrade, May, 17. 2010 (Serbia Today) - Serbia will continue investing in food production and will contribute to food safety and security in the region and beyond, Said Serbian president Boris Tadic at the recently held International conference “Reform of the Common Agricultural Policy - the challenges of accession and cooperation”, “Serbia will continue investing in food production, just as it has doubled food production in recent decades. We can become significant producers in the years to come,” he said. Tadic pointed out that Serbia is currently exporting foods worth USD 2bn, and added that he expects the exports to reach a value of USD 5bn in the future. “Serbia will continue investing in food production, just as it has doubled food production in recent decades. We can become significant producers in the years to come,” he said. According to him, Serbia has shown a willingness to increase food production despite the recession. Tadić said that today Serbia is fighting organized crime and exploring new energy resources and thus greatly contributing to overall European security. He recalled that Serbia is a country that wants to become an EU member and that this is its most important strategic goal. “We think that our European partners can count on us as a significant factor of safety and security when it comes to food production,” Tadić said. The conference, held at the House of the National Assembly, besides Serbian participants, is also attended by representatives from Croatia, the Czech Republic, Estonia, Hungary, Portugal and Slovakia.

Red Star gets foreign investors?

2010-05-18T02:21:00.000-07:00

Belgrade, May, 14. 2010 (Serbia Today) - Europe’s third biggest shopping mall constructor, Portuguese-British company Sonae Sierra, is interested in investing in Red Star FC. The Portuguese embassy did not want to give any details, but its officials said it was certain that the investment would be worth hundreds of millions of euros. The project would “completely preserve the tradition and cultural heritage and it will also take care of environment preservation”, it was said, B92 has learned. Portuguese Ambassador Luis de Almeida Sampaio told a press conference that he hoped that the agreement would be soon reached between representatives of the two countries regarding investments into a domestic sports club and a football stadium. “My prognoses are (this will happen) by summer,” he said. Although there is a lack of a new law on sports in Serbia, lawyers point out that there is a legal possibility for such form of investments and that the only question is how to carry them out.

Ikea investing 1.2 bilion euros in Serbia

2010-05-15T02:36:00.000-07:00

Belgrade, May, 12. 2010 (Serbia today) - Ikea could invest in construction of new plants in Serbia and employ around 9000 workers in coming years announced Swedish Ambassador Krister Bringeus. He said that there are ongoing negotiations which should allow an opening of five of Ikea's shopping centers in Serbia. The first center should be opened in two years near the airport, Nikola Tesla. Regional manager of Ikea for Serbia, Slovenia and Croatia Dragan Skalusevic said earlier that it plans to invest 300 million euros in center near Belgrade and also to employ about 2000 people. He specified that the department house will occupy 35 000 square meters, and for the shopping center, it would be housed in a space, that is three times bigger. The largest producer and exporter of furniture in Serbia, Simpo from Vranje signed an agreement on business with Ikea worth 5,5 million euros, and according to some, the Swedish company is interested in a strategic partnership.

Serbia to invest in a nuclear plant in Bulgaria?

2010-05-14T03:14:00.001-07:00

Belgrade, May, 10. 2010 (Serbia today) - Serbia is ready to participate in the construction of a nuclear plant in Bulgaria, writes Belgrade daily Danas, based on a claim by Bulgarian senior officials. There was no comment from the Serbian Mining and Energy Ministry, but the Danas has discovered that the information is correct, and that Serbia could be spending as much as USD 100mn for the project – five percent of the plant’s total value. An anonymous source from the government described it is a “very good project”. “Since the nuclear plant would be built in Bulgaria, the project does not go against the moratorium prohibiting the construction of a nuclear plant on Serbian territory. With participation in the construction, we would receive cheap electricity and the chance to give jobs to young people who study nuclear sciences,” the source said. Several years ago, Bulgarian President Georgi Prvanov offered Belgrade the opportunity to participate in the project. Bulgarian Prime Minister Boyko Borisov said that Serbia was ready to participate in the project and invest five percent of the value for constructing the plant. “Foreign investors want a complete analysis of the project, and that is why Bulgaria now has the right to select consultants that will write the report and show that there is use from building the nuclear plant,” he told reporters in Bulgaria, adding that it can be completed very quickly if the right investors are found.

Djelic: Serbia to produce battery for the cars

2010-05-12T01:46:00.000-07:00

Belgrade, May, 07. 2010 (Serbia today) - Serbia should participate in the German project for the production of batteries for electric cars, said Serbian Deputy Prime Minister Bozidar Djelic. Djelic says that our country will soon be opening the largest branch of the German research center Fraunhofer, which employs more than 14,000 researchers in 80 branches in that country. Researches in Serbia should be focused in the field of information technology and biomedicine, he said, indicating that it was agreed that in the future Serbia will partly participate in the German project for the production of batteries, which should facilitate the development of electric cars."It will be more other initiatives, but it is very important that Germany has recognized Serbia as a small, but ambitious country in the field of science and technology," said Djelic and added that Serbia's future lies in the attraction of big technological companies."Germany has thousands of companies such as this and it is very important that Serbia, instead of exporting smart people to Germany, try to export smart Serbian-German products, said Serbian Deputy Prime Minister. The Serbian government, he said, increased the budget for science to 120 million euros in the budget. Thanks to the arrangements with the European Investment Bank, signed in March 2010, another 500 million euros will be allocated in the next five years for the scientific and technological infrastructure of Serbia.

Sweden to annually donate €12m in next two years

2010-05-10T07:24:00.003-07:00

Belgrade, May 5, 2010 (Serbia Today) – Finance Minister Diana Dragutinovic and Swedish Ambassador to Serbia Krister Bringeus signed an agreement concerning development cooperation for 2010-2012 between Serbia and Sweden. Under this agreement, Sweden will annually allocate €12 million in the next two years for programs and projects for the democratization of society, human rights protection and environmental protection. Key areas defined for dialogue are sustainable development, gender equality and the role of women in democratic development and EU integration. Sweden provided nearly €106 million in assistance to Serbia since 2001, Dragutinovic said. Thanks to this assistance, data processing in statistical analysis has been harmonized with EU standards, court and police efficiency improved, environmental protection projects implemented, as well as projects to help refugees and the Roma, the Minister said. She also noted that through similar assistance program with other states, Serbia has received €3.2 billion since 2001. Bringeus stressed that Sweden endorses Serbia’s EU integration, noting that in this process Serbia will need a lot of political energy, as well as regional cooperation. The projects for which Sweden secured donations are being implemented through the Swedish International Development Cooperation Agency (SIDA).

Sweden to annually donate €12m in next two years

2010-05-10T07:24:00.001-07:00

New investments in the industrial zone in Indjija was announced

2010-05-04T06:40:00.000-07:00

Belgrade, April 26, 2010 (Serbia Today) - Maxim Group from Celje, which it operates several companies in the field of metal processing and similar activities, will open in July in the industrial zone in Indjija Metal-Cinkaru, where they will invest 21 million Euros. As director Max Bastl told journalists from Serbia, Indjija zinc factory will be build with the highest technological line in Eastern Europe and also the largest zinc factory in the Balkans, which will give about 50 new jobs. This zinc factory in Indjija will be the second company owned by Metal-Cinkare in Serbia. Maxim Group owns zinc factory in Cuprija as well, and now Slovenian company chose to expand operations in Serbia. Bastl said that Maxim Group has all the necessary international standards for the metal industry, which includes a responsible attitude towards the environment, since the production process in zinc facility goes in a closed cycle without harmful emissions of by-products. This means that 88 percent of waste from the factory in Indjija can be recycled, and the remaining waste will be managed by agency who will receive the authorization of the Ministry of Environment and Planning of Serbia. Director Simon Bastl says that the protection of iron and steel by the zinc is more environmentally acceptable, and economically most affordable anti-corrosion protection treatment. The advantage of hot galvanizing in relation to the various coatings is lower price, period corrosive protection of hundred years, and strong resistance to corrosion in different environments. Maxim Group was founded in 1990. and since then has undergone a series of organizational changes. In addition to anti-corrosion protection of hot galvanizing, is engaged in the development, construction and production of special transport containers and products for chemical storage and waste collection.

Serbia part of EU in energy sector

2010-04-30T19:18:00.000-07:00

Belgrade/Vienna , April 24, 2010 – Minister of Energy and Mining Petar Skundric stated today that Serbia should become a focal point for gas supply in the Western Balkans, successfully supplying the entire region with gas. Skundric, who is visiting the headquarters of the Energy Community in Vienna, talked with Director of the Energy Community Secretariat Slavtcho Neykov about regional gas and electricity networks, the harmonization of energy legislation and the jurisdiction of regulatory agencies in the energy market. The Minister said that he talked with Neykov about issues related to Serbia’s energy sector and Serbia’s role in the implementation of energy policies, which is a responsibility of the Energy Community as part of the EU. As a fully-fledged member of the Energy Community, Serbia is practically a member of the EU when it comes to the energy sector, he said. Serbia wants to resolve vital national and regional energy issues. These issues are related to problems in a stable energy supply and the oil industry, he said. The Energy Community understands the nature of the problems facing Serbia and the region and is ready to find joint solutions for all problems in order to increase energy efficiency and power supply stability in the region. If we examine the gas sector we can see the importance of the national gasification plan which includes linking supply networks with neighboring countries, he said. Serbia and Bulgaria have an agreement to build the Nis – Dimitrovgrad – Bulgarian border interconnection, and talks on similar agreements have also been held with other countries in the region, he said. He said that he and Neykov discussed the electricity transfer, the construction of new facilities and the renewable energy sector, in which both Serbia and the Energy Community are interested. Skundric said that the Pan-European oil pipeline is one of the projects towards which the Energy Community is also inclined and which is of particular interest for Serbia and Romania, voicing his hope that other participating countries will take a more active stance towards its realization. The Minister said that they also discussed the issue of electricity supply to Serbs and other non-ethnic Albanian population in Kosovo-Metohija, adding that the Energy Community is willing to provide assistance within its capabilities. Neykov thanked Skundric for the initiative which the Serbian Minister started during the talks in Vienna, referring to the drafting of a regional strategy in energy.

German investors willing to invest in Serbia

2010-04-30T05:51:00.001-07:00

Belgrade, April 23. 2010 (Serbia Today) - German investors positively assessed the growth of the operations in Serbia and 87 percent would again invest in the Serbian market, announced today the German business association in Serbia. All the companies that participated in the survey of German business associations on business conditions in Serbia, expect sales growth in 2010 and 39 percent plan major investments, told representatives of the Association at a press conference. Director of the Delegation of German investors in Serbia, Michael Schmidt said that the direct investment of German companies in Serbia during the economy crisis of 2009 were about 50 million Euros, and this year there is a possibility of expansion of existing investments in the Serbian market. "In times of crisis it is very important to create jobs," he said. Schmidt said that to attract new investments it is necessary for the Serbian government to be more effective, especially in the reduction of bureaucracy, building public infrastructure, public procurement, subsidies, and improving legal certainty. About two-thirds of the surveyed companies, according to Schmidt, said that the Serbian government measures to ease the crisis were average or ineffective. Chairman of the Board of the German Economic Association in Serbia Ernst Bode said the economists estimated that the economic position of Serbia is not fantastic, but that the position of the companies are better than last year. About 30 percent of companies surveyed rated its operations in Serbia as good, while 62 percent said that it is satisfactory, he said, adding that 48 percent of companies expect sales growth in 2010, a 42 percent expect the increase in profit. The German Ambassador in Serbia Wolfram Maas, said that the total German investment in Serbia is around 1.5 billion Eros, and Germany is among most important trade partners of Serbia. There are potential for expanding trade and economic cooperation between Germany and Serbia, said the ambassador.

German investors willing to invest in Serbia

2010-04-30T05:51:00.000-07:00

Dinkic and Leskovac investors signed contracts

2010-04-22T07:31:00.001-07:00

Belgrade, April 16. 2010 (Serbia Today) - Mladjan Dinkic,Vice President and Minister of Economy and Regional Development signed contracts with investors in Leskovac three day ago for finansial stimulus package in which they will invest in Serbia more than 35 milions Euros and employ more than 2 200 people. Nine investors will receive from the Agency for Foreign Investment and Export Promotion Agency (SIEPA) funds for each new employed worker from the allocated fund. Most of it will go to a German, "Falk," said the Ministry of Economy and Regional Development. The company plans to start production in Leskovac and hire about 600 new workers and to invest in the production of five to eight million Euros, it was said in the press release.

Slovenian investment in Serbia exceeds $1bn

2010-04-16T07:05:00.000-07:00

Belgrade, April 10. 2010 ( Serbia Today) - Deputy Director of the Serbian Investment and Export Promotion Agency (SIEPA) Bojan Jankovic stated that Slovenian investment in money and goods invested in Serbia so far totals over $1 billion. At the meeting of the Slovenian Business Club in Belgrade, Jankovic specified that from 2001 to 2009 Slovenian investment in Serbia amounted to $704 million, while the total investment in money and goods is estimated at over $1 billion. He said that Slovenia ranks seventh among countries that have invested in Serbia, while according to the number of companies it has opened there, ie more than 400, it is among the top five countries. He stressed that Slovenian investment in Serbia was varied, adding that the most important areas of investment were in the financial and insurance sectors, the food industry and civil engineering. Jankovic announced the expansion of the capacity of the Gorenje factory in Valjevo and the completion of a €21 million investment by the Cinkarna Company in Indjija. Serbian investment in Slovenia in the period 2001–2009 amounts to less than $100 million. Our foreign trade marks a continuous growth and by 2009 it stood at $5.3 billion, Jankovic specified. He said that their cooperation can be further improved by facilitating the placement of Serbian goods in Slovenia, better cooperation between inspectorates and encouraging technical-technological cooperation.

Construction of Bridge on the River Lim

2010-04-10T03:21:00.000-07:00

By Bojana Jankovic

Uzice, April, 01, 2010 (Serbia Today) - On Thursday, March 25, 2010 the Ministry for National Investment Plan, the Minister for NIP,Ms Verica Kalanović, director of the Company "Roads" , Mr. Milan Bojović, and Mayor of the county of Prijepolje, Mr. Dragoljub Zindović, signed a contract for construction of the bridge on the river Lim in Prijepolje (the western part of Serbia).

This investment is worth 105 million dinars, and the company “Roads” from Uzice will build the bridge. A deadline for completion of works is 350 days from the introduction of contractors in the business. The ministry stated that the contractor is ready to begin preparations for the construction of the bridge over the River Lim at the beginning of next week, which will significantly contribute to the relief of traffic in the city and better communication with the highway Belgrade-Podgorica. The Ministry for National Investment Plan (NIP) has singled out 95 million dinars and from the budget of Prijepolje 10 million dinars for the construction of this bridge.

Construction of Bridge on the River Lim

2010-04-09T08:32:00.001-07:00

Government adopts text of Zemun–Borca Bridge construction contract

2010-04-06T04:04:00.000-07:00

Belgrade, March 30. 2010 (Serbia Today) – Minister for the National Investment Plan Verica Kalanovic stated that at yesterday’s session the government adopted the text of the contract for the construction of the Zemun–Borca Bridge, to be signed between the Serbian side, represented by her Ministry and the City of Belgrade, and the Chinese company Bridges and Roads.

Kalanovic told the Tanjug news agency yesterday that along with the text of the contract, the government also adopted the report on the course of negotiations, explaining that the contract is a complex one and specifies in detail the obligations of the investor, i.e. the Republic of Serbia, on one side and the contractor on the other. She said that the bridge will be completed within three years, the accompanying roads within two, while all standards, both when it comes to the quality of materials and work, will be in line with the Serbian legislature and the highest EU standards.

Competition protection important for attracting new investors

2010-03-29T02:56:00.000-07:00

Belgrade, March, 23. 2010 ( Serbia Today) — Minister of Trade and Services Slobodan Milosavljevic said today that building a practical and effective framework for competition protection in the Serbian market is a complicated process and a big challenge for the government and the Competition Protection Commission. Speaking at the Competition and Competition Protection conference, Milosavljevic said that this is an important requirement for establishing businesses in the market, intensifying economic activity and attracting new investors. A first step was made in 2005 by the harmonization of the Serbian market with the European market through the Competition Protection Law. The new Competition Protection Law, passed in 2009, has strengthened mechanisms for the implementation of competition rules, he said. The current legal framework however is inadequate for the full implementation of market competition rules and it must be amended, the Minister said. The purpose of competition protection is not to protect the competitor rather to protect the market, he said. Representative of the European Bank for Reconstruction and Development (EBRD) Paul Moffat said that the current environment can also step up the EU integration process, as well as Serbia’s economic development. Moffat welcomed the adoption of the new Law on the protection of competition, stressing that a great deal has been done in Serbia regarding development of the legal framework. He added that a number of other practical matters have yet to be completed, including the development of a code of conduct regarding competitiveness. Head of the European Integration Section at the European Commission delegation Alberto Cammarata said that Serbia and the European Commission will work together on the implementation of this Law and carefully monitor its enforcement. The conference was organized by the Centre for Liberal-Democratic Studies and the EBRD.

Tender for Corridor 10 northern section

2010-03-23T02:39:00.001-07:00

Belgrade, March, 17. 2010 (Source : Tanjug) - Minister of Infrastructure Milutin Mrkonjic said yesterday that the Serbian government has announced a tender for the construction of the northern branch of Corridor 10, from Novi Sad to Horgos and from Subotica to Kelebija.
In a statement to Tanjug news agency, Mrkonjic said that the plan is to complete the entire Belgrade-Horgos-Kelebija highway by completing the construction of the ring road around Novi Sad and the Beska Bridge by the end of this year. The Minister said that a tender for the construction of 110 kilometres of the highway was announced on December 31 last year.
He explained that the tender has been announced for the construction of sections of the highway from Novi Sad to Horgos, on sections between Horgos and 28 kilometres from the border, from the 38th kilometre to the 98th kilometre as well as the section between Kelebija and Subotica. Mrkonjic said that the tender deadline is February 1 and that it will be completed by February 5, adding that he hopes that domestic companies will take part in the construction but the tender is open to foreign companies as well.

€9bn to be invested in energy sector

2010-03-19T01:03:00.001-07:00

Kragujevac, March 13. 2010 (Serbia Today) – Serbian Minister of Energy and Mining Petar Skundric said today that some €9 billion will be invested in the Serbian energy sector over the next five to seven years. Opening the international conference "Energy and Sustainable Development", which will be held in Kragujevac until 13 March, Skundric said that €4 billion will be used for the general overhaul, revitalization and increase of environmental standards, and €5 billion for building capacity in the field of energy.

He also said that €3 billion will be invested in renewable energy sources, and €500,000 for electrical transfer projects, since Serbia holds an important position in the region. In the gas sector field, the investment cycle started with the construction of an underground gas storage facility in Banatski Dvor and construction of one more storage facility is planned. The plan is to complete the construction of the "gas ring" in the next few years to enable the integration of Western Balkans into the EU gas market.

The Minister stressed that Serbia is able to build plants using renewable energy sources. Also, we have very good resources for the construction of small hydropower plants, he said adding that Serbia is also rich in eolic and solar energy sources. Italian Ambassador to Serbia Armando Varricchio and Deputy Head of European Commission Delegation to Serbia Adriano Martins noted that despite the fact that Serbia is lagging behind in terms of energy efficiency, it has capacities that can contribute to future development. Chairman of the Management Board of Fiat Automobili Srbija Giovanni de Filippis noted that his company is also working on developing production electric vehicles.

First investor in Beocin Business Park

2010-03-16T03:03:00.000-07:00

Beocin, March 10, 2010 (Serbia Today) - Lafarge BFC’s Beocin Business Park welcomed its first investor who shall commence operation this year, creating conditions to opening new job positions in Beočin. The Business park is the regional unique business friendly environment, providing all requirements to investors looking toward South East Europe.

They signed the Contract with the investor, MARS Company which is the producer of precise mechanical parts and process metal components with strong market share, export oriented company which will also strongly influence Serbian export in general. Signing of the Contract was attended by members of Vojvodina Government headed by the President of APV Government, representatives of local community & business sector, many representatives of local and national media, and Lafarge Beocin Business Park management and employees. Bojan Pajtić, President of APV Government stated: “This is the beginning of operation of the first plant in BBP which will provide new job positions in Beocin, I congratulate Lafarge BFC and local authority for the partnership in realization of this project. We are supporting this project with 65.000 Euros for the first fifty new job positions.”

Facility in Beocin will be erected within the next six months, in dependence of legal procedure and will produce precise mechanical parts and process metal components. The entire assortment is intended for export. Metal components will be used for medical equipment, elevators, cash machines. It is planned to employ fifty people during the first year of business, and up to a hundred employees by the end of the second year. Value of the investment is around 2,3 million Euros.

By signing of the Contract, the transfer of right to use was made – ownership over the land of 1 hectare where the investor will erect the production facility of 4000 m2. The investor is obliged to apply Lafarge H&S rules and the training will be organized by our H&S Department. In addition, MARS Company is obliged to observe legal, technical, ecological, health and safety regulations, as well as to inform us about erection phases, investment and employment plan. By our Employment Assistant Office, which is established more than 7 years ago, and still operating into the plant, we will support employment process.

Serbian Energy Infrastructure – best investment in future

2010-03-09T05:06:00.000-08:00

Budapest/Belgrade, Feb. 26, 2010 ( Source: serbiangov.rs) – Serbian Prime Minister Mirko Cvetkovic said on Wednesday on the Summit on Energy Security in Budapest, that investments in energy infrastructure are investments in the future development of countries in the European region that they have to catch up with advanced economies and to provide citizens a higher level of stability.Summit on Energy Security brought together the premiere of countries of Central, Eastern and Southeast Europe. We must invest joint efforts to carry out the planned new transit projects as soon as possible, to ensure a stable energy supply of Europe, as well as to diversify sources and routes of energy markets, said the Prime Minister. He stressed that for Serbia, a priority is the project pipeline South Stream, which should provide significant amounts of natural gas to markets in Europe. He added that the pipeline has a European character and importance and will have positive effects on energy security, creating an energy efficient network economic activity and regional networking. At the same time, we are open for participation in other projects and plans aimed at strengthening the security of energy supply, the expansion of transport-storage capacity and regional networking, said Cvetkovic.

Serbia is already making serious efforts to improve legislation, adopting European standards and the development of energy capacity that would be of regional and European importance, he noted. The Prime Minister said that investment in the reconstruction of the energy capacity per annum is approximately €1 billion, and expressed the expectation that this amount will increase further in the next five years. He recalled that Serbia has started with significant investment in new electricity production capacities, which include construction of two power plants on lignite and a gas plant, whose total capacity is 1750 MWh, which represents approximately 20% of the total production capacity of our country. Cvetkovic said Serbia is investing maximum efforts to promote electricity production from renewable sources, and started activities in the utilization of the remaining hydro potential, especially the Drina River, whose capacity is estimated at approximately 1,000 MWh, with an average annual production of 3800 GWh. The Prime Minister stressed that Serbia adopted a program of support for the production from renewable sources, which should attract significant investment, particularly in the production based on wind, water or biomass. According to him, all the mentioned projects will be carried out only through a majority share of private capital, thus indirectly abolishing a monopoly in the field of electricity production and further improve the efficiency of energy systems. He said that Serbia in early 2009 signed a contract with Russian Gazpromneft, which began an extensive process of investing in the reconstruction of Serbian capacity for processing oil. The Prime Minister stressed that in parallel with the activities of the South Stream project, Serbia invested significant resources in the development of its strategic gas storage. The first of these projects, Banatski Dvor, whose capacity is 800 million cubic meters in the final stage, Cvetkovic explained and added that we intend to increase the capacity several times with the construction of new warehouses. We also plan to invest together with Romania, which will give an additional contribution to the energy stability of Serbia and the region, said the Prime Minister.

French Investments in Transport sector

2010-03-04T02:22:00.001-08:00

Belgrade, Feb. 25, 2010 (Serbia Today) – The Deputy Prime Minister for EU integration Bozidar Djelic and the French State Secretary for Foreign Trade Anne-Marie Idrac announced this evening that France will offer Serbia expertise and investments in their transport sector. “The French government has helped Serbia climb up to category six from seven on the Organisation for Economic Cooperation and Development (OECD) ranking lists,” said Djelic, after talks with Idrac. “We discussed matters of joint interest, including the purchase of an Airbus for Jat Airways. The Serbian government has formed a working group to examine this issue and after this visit we expect that a decision will be reached soon”, said Djelic. “The construction of road and rail Corridor 10 was also discussed as France has expertise in this field,” he said. “The potential of the Danube River was also discussed. France is interested in building river port infrastructure as well as water cleaning projects in Belgrade and other places,” said Djelic. Djelic and Idrac also discussed the Belgrade metro project and stated that joint work will be done to determine the best model, as well as the financial aspects. Idrac said that France will assist Serbia in the EU integration process. “France will also focus on specific areas in which it possesses expertise, transport being one of them,” she said. “French businesses are ready to cooperate for the construction of the metro technically as well as financially. They are also interested in projects related to the Danube,” said Idrac.

Serbia will do everything to attract Swedish investment

2010-03-02T04:03:00.000-08:00

Belgrade, Feb. 24, 2010 (Source: serbiangov.rs) – Deputy Prime Minister for EU Integration Bozidar Djelic declared that Serbia will do everything to attract Swedish investment and that negotiations in bringing Swedish company Ikea to the Serbian market by 2011 are underway. After meeting with Swedish Minister of Trade Ewa Bjorling, on Monday Djelic announced that the plot of land to be allocated to Ikea currently belongs to the Institute for Animal Science and is located adjacent to Nikola Tesla airport. He disclosed that Sweden makes annual donations of €11 million to our country, but noted that trade between the two countries is still not at an optimum level. The Deputy Prime Minister expressed his gratitude for the decisions made during the Swedish EU presidency in the second half of last year, which hold great importance for Serbia. These include the decision of the Council of EU Ministers to proceed with the implementation of the Interim Trade Agreement and the submission of Serbia's candidacy for membership in the EU. Bjorling said that she discussed Serbia’s further progress in the EU integration process and on ways to strengthen economic cooperation between Serbia and Sweden with Djelic. She said that they also discussed the simplification of administrative procedures relating to investment in the Serbian economy, as well as measures to control corruption. Referring to Serbia’s EU integration, Bjorling noted that Sweden supports the EU enlargement process and Serbia’s eventual accession to the EU. Djelic and Bjorling also met with representatives of Belgrade and Nis and discussed ways of resolving ecological problems in Serbia. These related chiefly to problems caused by waste water. They also discussed issues relating to the energy sector.

MK Group expending in Serbia

2010-03-01T03:45:00.001-08:00

Novi Sad, Feb. 22, 2010 (Serbia Today) – “The MK Group” owned by Miodrag Kostic, is interested in taking over management of the sugar plants in Bac, Vrbas, Pecinci, and Kovacica, all presently owned and operated by German sugar giant “Nordcuker”.
MK Group is at this time minority partner of the Nordcuker in the joint venture “Sunoko”. This unofficial statement reported by Belgrade daily Vecernje novosti, came after Nordcuker, which has been for years one of the leading producers of sugar in Europe, announced that it will sell its shares in the Serbian sugar plants.
If Nordcuker will completely pull out of the sugar business in Serbia, or keep some of the shares, it is still unknown. Reason for this move by the German company is most likely in their recent financial troubles after acquisition of the Danish sugar plant “Danisco”. In 2006, Nordcuker entered Serbian market through MK commerce, member of the MK group.

Investment in education must increase

2010-03-01T03:40:00.000-08:00

Novi Sad, Feb. 20, 2010 (Serbia Today) – Minister of Education Zarko Obradovic stated on Thursday that Serbia’s further economic development is not possible without quality education for which higher investment is indispensable.

Opening the 6th international education fair “Guidelines” in Novi Sad Obradovic said that the road towards the EU is not possible without a quality, modern and efficient education system. He said that just like other countries, Serbia is also aware of that fact, pointing out that the development of education will require more commitment in order to boost the quality of all people employed in the system.The Minister stressed that this implies Serbia’s engagement in increasing financial contributions for the education sector. He said it is necessary to work systematically in all segments of the education sector, adding that this fair is an opportunity to present Serbia’s achievements to the domestic and international public. Following the opening address, Obradovic and Assistant Minister of Education Bogoljub Lazic toured the stands and participated in the roundtable discussion “Reform of Grammar School Education”. Over 60 exhibitors will be presented at the education fair, which will last until 20 February, including state and private universities from Greece, Hungary, Italy and Serbia.

Three bids for construction of Corridor 10 northern link

2010-02-24T03:35:00.001-08:00

Belgrade, Feb.18, 2010(Serbia Today) – Tender bids for the construction of 110 kilometers of the northern part of road Corridor 10, from Novi Sad to Horgos and from Subotica to Kelebija, were opened on Tuesday at the Ministry of Infrastructure. It was stated that three bids had been received.

The bids were submitted by a consortium of Serbian companies led by PZP from Belgrade, Primorje from Slovenia and Hidroelektra Niskogradnja from Croatia, in consortium with Vojput from Subotica. The consortium of Serbian companies offered the lowest price of RSD 9.97 billion, the Croatian company offered the price of RSD 11.55 billion, while the Slovenian company’s offer was RSD 13.47 billion. President of the Commission Dejan Kovacevic recalled that the documentation for the construction of Corridor 10 was purchased by 25 companies, and announced that a report of that Commission will be published in a few days. Kovacevic said that the Commission will consider all complaints from consortium Vojput and Hidroelektra Niskogradnja, after which it will make an announcement on the offers.

Investors from Italy interested in cooperating with Serbian businesses

2010-02-21T04:45:00.001-08:00

Belgrade, Feb.13 , 2010 (Serbia Today) – Minister of Trade and Services Slobodan Milosavljevic told reporters on Thursday that Italian investors are interested in cooperating with Serbian businesses in the areas of energy, commerce and infrastructure, primarily the Belgrade–Bar rail line project.

In a statement to Tanjug news agency, Milosavljevic, who is attending the Investment Forum of Italy and the countries of Southeast Europe in Verona, said that he held a meeting today with Italian Minister for Economic Development Claudio Scajola. It was concluded at the meeting that there is huge potential on both sides which should be utilized and that the Italian government supports Fiat’s presence and development plans in Serbia, said the Minister. He remarked that during his stay in Italy he will also talk with the Italian Deputy Minister for Economic Development Adolfo Urso and hold several bilateral meetings with representatives of Italian companies and ministers from states taking part in the forum. Milosavljevic voiced the expectation that Italian investors will increase their presence in Serbia in future, noting that the reconstruction of the Belgrade–Bar railroad is important for Italy since it implies railroad and road links between central and southern Europe, through the Balkans. He also explained that the energy power line, that will reach Italy across the Adriatic, is also significant, reiterating that energy and infrastructure are priority investment sectors for Italian companies.

Best Entrepreneur Award for 2009 presented to Stublin

2010-02-21T04:42:00.001-08:00

Belgrade, Feb. 12, 2010 (Serbia Today) – Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic presented the Best Entrepreneur Award on Wednesday to the owner of locks and chains production firm Stublin in Stojnik, Radovan Milojevic.

Dinkic said that the top five entrepreneurs shortlisted for the award can count on loans on favorable terms from the Development Fund. He also pointed out that entrepreneurs are courageous people with energy and purpose, and added that successful entrepreneurs need support. Deputy President of the Intesa Bank Executive Board Giancarlo Miranda stressed that this year the jury decided to present the runner-up, Mitar Obradovic, owner of the confectionary factory Nelly, with an award of €5,000. The other three entrepreneurs shortlisted for the Best Entrepreneur in the SME category are Miodrag Radovanovic, owner of the Radovanovic wine cellar, Zoran Knezevic, owner of the DIV Trades and Branka Radovanovic, co-owner of the PS Tech software company.The award is presented as part of a campaign organized by the Blic daily and Intesa Bank for the third year in a row, with the aim of promoting the Serbian entrepreneurial sector.

Inflow of funds to Serbia from Serbians living abroad 5.5bn dollars in 2009

2010-02-19T03:54:00.000-08:00

Belgrade, Feb. 10, 2010 (Serbia Today) – Serbian Minister for Diaspora Srdjan Sreckovic said today that foreign remittances and inflow from Serbian immigrants increased by over 15% in 2009 and that they totaled $5.5 billion, according to World Bank estimates.

Sreckovic said that this is more than 14% of the country’s total GDP and more than half of Serbia’s entire exports. In addition, financial support to Serbia from the Diaspora was bigger even than the support from the International Monetary Fund and other financial institutions. The Minister said that this financial support contributed to the relative stability of the foreign exchange rate, since these foreign currencies mostly went to final use and thus their offer on the market increased substantially, which maintained the rate of the dinar. Sreckovic said that the greatest inflow of foreign remittances came from Germany, Switzerland, Austria, the United States, Canada, Australia and Sweden. He explained that the foreign currency inflow may be even higher because much of the money enters the country through informal channels to avoid large banking commissions typically ranging from 0.15% to 0.4%. The Minister pointed out that this data highlights the great financial potential of our Diaspora. Sreckovic said that since 2000 the Diaspora had invested more than $550 million in small and medium-sized enterprises, which now employ about 22,000 people. It is clear that a more active economic policy towards the Diaspora and offering specific investment projects in the future can give great impetus to the economic development of Serbia, concluded Sreckovic.

Real Estate Prices in Belgrade are among lowest in Europe

2010-02-17T01:38:00.000-08:00

Belgrade, Feb. 08, 2010, ( Source Blic) - Recent studies show that Belgrade has the lowest prices for renting apartments and offices in the region.

Other than Budapest, in which the amount of available apartments has been greater than the demand in the last two years, Belgrade is the cheapest larger city in Southeast Europe, with apartments costing less than in Sofia or Tirana even. The prices for renting offices in all of Serbia have fallen to a level they have not been at since 2000.
According to research done by the consulting company Colliers, the average monthly cost for renting an A-class office or apartment in Belgrade is currently at EUR 13.9 per square meter. Office space manager in Colliers, Boško Tomašević, said that people looking to buy should take advantage of the “buy while its cheap” principle.
He said that some who rent sometimes break off agreements that are under favorable conditions and go to a new location, therefore, there are always locations springing up that are available but were being rented out for a longer period of time previously.
Both old buildings in the direct center of Belgrade and the modern office spaces in New Belgrade have a large percentage of locations that are not occupied. Colliers stated that in the second half of 2009, the increase in available A-class locations was 17.5 percent, and B-class locations on the outskirts of the city increased in availability by 20 percent.

China and Serbia signed power plant deal worth $1.25bn

2010-02-15T04:03:00.000-08:00

Belgrade, Feb. 05, 2010 (Serbia Today) - Serbia’s public power enterprise EPS, Chinese CMEC company, and the Kosotolac power plant signed on Wednesday (Feb. 04) a pre-contract worth over a billion dollars.
The contact agreement, related to the plant’s revitalization, was signed by EPS General Manager Dragomir Marković, representative of CMEC Jin Chunseng and Director of Kostolac thermoelectric power plant Dragan Jovanović. The project includes the revitalization of the existing blocks B1 and B2 of the Kostolac B plant, each of 350 MW capacity, and their desulphurization, it was announced. The deal, worth USD 1.25bn, will also see an increase in the capacities of the open pit Drmno to 12 million tons of lignite per year, and the construction of new block B3. Minister of Energy and Mining Petar Škundrić, who attended the signing ceremony at the Serbian government in Belgrade this Wednesday, said that the Chinese partner will take part in the project with approximately 85 percent of total funds, which exceeds the figure of USD 1bn. Škundrić also told reporters that this was one of the biggest investment ventures in the forthcoming investment cycle in the energy area, adding that the project should promote strategic cooperation between Serbia and China.

Action plan for reviving production of SIK Kopaonik agreed

2010-02-12T01:23:00.001-08:00

Belgrade, Feb 03, 2010 (Serbia Today) – Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic and his associates held meetings with representatives of furniture company Simpo and public company Srbijasume, at which it was agreed to make an action plan for reviving production at the forest industry complex SIK Kopaonik.
During this month, production will be launched in the saw-mill, as well as production of hardboard with the existing equipment, which will give work to almost 300 people who are employed in the company. This production will be based on profitable grounds because there is a demand for these products, both at home and abroad. Srbijasume will provide a regular supply of intermediate goods to SIK Kopaonik, while the Ministry of Economy and Regional Development will provide the working capital necessary for starting up the production. The possibility of opening more factories within the SIK Kopaonik system will also be contemplated with Simpo experts. Agreement was also reached to open an entirely new factory in autumn to produce high-quality hardboard. In order to realize this investment, the Ministry of Economy and Regional Development will secure a favorable €5 million loan through the Development Fund for the purpose of procuring new equipment. Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic will visit SIK Kopaonik in early March and once the investment in equipment is realised, he will officially open a new factory for manufacturing high-quality hardboard in autumn, the statement adds.

The Construction of Elite four-star Hotel in Smederevo under question mark

2010-02-04T00:19:00.000-08:00

Smederevo, Jan. 29, 2010 (Serbia Today) - In spite of the announcement by investor Integral energy from Belgrade that the elite hotel in Smederevo will receive its first guests at the end of 2010, the works have not even started yet. The investor has no money for restoration of the old hotel, and the unofficial information is that the project worth 10m EUR is ruined and that the building is for sale.
Citadela Terme is the name of a modern four-star hotel that was supposed to be built in the place of the dilapidated hotel of former company Jedinstvo. In addition to the computer animations of the exclusive facility, the investor's website also contains the information that the hotel will have 106 rooms, three restaurants, congress hall, spa center and indoor aqua park after the restoration. The complex would occupy the surface of nearly 3 ha and, because of the thermal waters whose temperature ranges between 25 and 31 degrees Centigrade, construction of two outdoor swimming pools with thermal water was in the pipeline as well. According to the website, the deadline for the hotel to be opened is the end of this or the beginning of the next year.
However, instead of a four-star hotel, the ruined building at the entrance to the city is still standing and the restoration has not even begun.
“We don't know what happens with this project. The investor visited us last year to ask about necessary documentation and licenses. We don't have any official information on the destiny of this project” says Vladan Biskupljanin, the Assistant Mayor for Investments and Development.
Unofficially, due to the crisis and lack of money, the project is already given up and the owner is looking for someone to buy the old hotel. However, the investor claims that it is not giving up in spite of the problems.
“ We do not make hostel, but small tourist attraction, which requires a lot of money. The crisis contributed to the fact that the banks do not want to provide support. Even foreign partners are interested, but nobody's offering the money. The sale exists as an idea, but the situation is the same. Nobody wants to pay a dime” says Milan Marković from Integral Energy.

“Pantomarket Stočar” expands its meat and dairy export capacity

2010-01-27T01:28:00.000-08:00

Belgrade, Jan. 26, 2010 (Serbia Today) - Čačak-based company “Pantomarket Stočar” invested 1.3m EUR in a new slaughterhouse and a small dairy last year, according to CEO Slavko Đalović, as reported in Politika. Able to process 100 cattle or 150 pigs a day according to HACCAP standards, the new slaughterhouse was built in the location of Čačak`s old slaughterhouse, next to the company’s farm in Mrčajevci. The acquired dairy in Zdravčići near Požega has a daily capacity of 1,000 liters of milk for cheese and ice cream.

In 2009 Pantomarket Stočar exported 8.0m EUR worth of meat to Montenegro and another EUR 0.3m of high quality beef to Italy. With only 77 employees the company ranks second in the value of exports from the Čačak region. The company’s capacity is 1,800 heads of cattle per round. “Last year we grew 3,000 heads of cattle, while 3,600 calves were grown in 2008. Our plan is to reach 5,000 heads of cattle per year,” said Đalović.

Aleva invests up to 7m EUR in new factory

2010-01-27T01:22:00.000-08:00

Belgrade, Jan. 25, 2010 (Serbia Today) - People from Novi Kneževac-based food company Aleva announced that between 5 and 7m EUR would be invested in the new factory in that town in 2010.
Aleva's Marketing Director Mirko Asanović said that that company for production of spices and spice pepper had achieved positive result in 2009 and registered bigger turnover than in 2008.
As he pointed out, in addition to the sales in local market and the markets of regional countries, Aleva is also present in Russian Federation (RF) for few yearsnow.
“The company signed the contract on export worth about 8m EUR with Moscow-based national distributor RKK at the end of the last year - said Asanović and added that the company from Novi Knjaževac exported cayenne pepper, spice and food additive "kulinat" and soups to that market..” Aleva is the only manufacturer of instant soups in Serbia. These soups are easy to prepare and they satisfy the needs of a modern fast-living man” - said the people from the company. The company was successfully privatized in 2005 and it is now a part of Flory Trading Group, which also owns factory for production of instant baby food Flory in Kruševac. Baby food from Kruševac is exported to Turkey, Iraq, Iran, Algeria and Libya, and export of these products to Russia and Ukraine is in the pipeline.

Trošarina closer to realization

2010-01-26T02:29:00.000-08:00

Belgrade, Jan. 24, 2010 (Serbia Today) - The “Verano Group” is now obtaining permits and approvals for the reconstruction and upgrading of “TC Trošarina” in Belgrade, it is reported in eKapija (Jan 14 and 19, 2010). Located on 5.18 ha between Vojvode Stepe Boulevard and the settlement Banjica, the multiuse development will consist of 73,000 m2 within three underground levels, a ground floor and two upper floors. Completion of the project is expected to take two to three years.

World Bank warns Serbia about loans

2010-01-25T04:07:00.001-08:00

Belgrade, Jan. 21, 2010, (Serbia Today) - Serbia should make better use of approved loans or risk having the money reduced or given to someone else, said Simon Grey, head of the World Bank‘s Belgrade office, in an interview with Blic reported January 18, 2010.

“Definitely there is a problem. There are some signs of improvement, but (we) can not say everything is fine regarding the withdrawal of approved loans.” As specific examples Grey pointed to loans for irrigation and drainage and the central registry for pensions. He also said that for the year 2010 the World Bank will not approve any (new) investment loan to Serbia except for USD 200m to support to the budget.

“I do not know whether you can call (reducing the loan or giving it to someone else) a penalty, but it will be one of the options if the situation does not improve.” the Head of the World Bank's Office in Serbia warned. “Therefore in April Director of the World Bank for South-East Europe Jane Armitage is coming back to Serbia to look at hoe money is spent on approved projects.”

Investors interested in Negotin wind park

2010-01-23T09:08:00.000-08:00

Negotin, Jan. 21, 2010 (Serbia Today) - The possibility of a wind park in the municipality of Negotin has interested several potential investors. Representatives of “Solar Wind Energy“ have spoken with the President Municipal Temporary Organ, Ljubiša Đorđević, about installing their measuring poles on Popadija to assess the feasibility of a wind farm with a capacity of 45 MW, and have indicated that a letter of intent will soon be sent. Also representatives of the Austrian company “Pricon Business Creation“ have made presentations to local officials about their wind farms in the Czech Republic, Poland, Austria, Hungary and Croatia. The company says it is interested in building a wind farm with ten 2 MW turbines within the municipality of Negotin in next year. The general position of Negotin's local self-government is a willingness to provide maximum assistance to all who want to invest in the municipality of Negotin.

Telenor" bids for new fixed landline telephone license

2010-01-20T02:08:00.000-08:00

Belgrade, Jan. 16, 2010, (Serbia Today) - "Telenor Srbija" was the only company to submit a bid for a license to become the second landline telephone operator in Serbia, the Republic Telecommunications Agency (Ratel) announced on January 12, 2010
The Minister of Telecommunications of Serbia, Jasna Matić, expects the tender will be successful and that the offer of "Telenor" will be suitable. All the necessary documentation was submitted and the financial bid will be opened prior to January 18th. The Minister said that if the bid of "Telenor" is inappropriate, the tender's weakness would be analyzed and the selection procedure would be repeated. “The aim of the tender is to enable citizens to select the least expensive package of combined mobile and fixed telephone and internet services,“ said Matić. He noted that the new draft law anticipated the complete liberalization of the telecommunications services market in Serbia by the end of 2011.
The representative of "Telenor", Goran Vasić, said that if "Telenor" got the license for landline telephone services, it would start providing services within one year. The goal was to offer subscribers a single internet, mobile and fixed landline service. “’Telenor’ is willing to resume investments in development of telecommunications in Serbia and offer new, better and more modern services,” he told the press. Vasić did not want to speak at this point in the tender process about the prices that "Telenor" would offer, but he point out that the fixed telephony market in Serbia was the cheapest in the region and in Europe. He also said that Telenor" would invest in development of its own telecommunication infrastructure, although part of it would have to be rented.

Documentation for participation in the tender was also purchased by "Vip Mobile", by the Serbian-American group "Konsing" and by Cypriot "Kerseyco Trading Limited", but they declined to submit bids. The new license is intended to end the monopoly on fixed landline telephone services now enjoyed by the state-owned company "Telekom Srbije."

Reservoir Capital" studying feasibility of new hydroelectric plants

2010-01-20T02:05:00.000-08:00

Belgrade, Jan. 12, 2010, (Serbia Today) - The Canadian company "Reservoir Capital" is performing feasibility studies for the construction of two new hydroelectric plants on the Lim River near Prijepolje, as reported by “Beta“.
The run-of-river power stations “Brodarevo 1" and "Brodarevo 2" would produce a total of 48 MW of power and cost an estimated 150m USD. Data from numerous geophysical, hydrological and ecological tests will be analyzed by economists and energy experts.
If the studies are positive, documentation and financing for the plants will be undertaken this year. The CEO of "Reservoir Capital", Miljana Vidović, told "Beta" that the company was currently competing for several hydropower projects in Serbia, Montenegro and Bosnia and Herzegovina.

Michelin sole owner of "Tigar Tires" factory

2010-01-11T08:52:00.000-08:00

Pirot, Jan. 06, 2010 (Serbia Today) - The French company Michelin became the sole owner of the car tire factory "Tigar Tires" in mid-December 2009 by paying the last installment of the purchase price to “Tigar.” According to Dragan Nikolić, CEO of "Tigar", as reported by Beta News Agency, "Tigar" decided three years ago to sell its share in the Pirot-based factory because of global trends in the automobile industry and because it was impossible to keep the pace with Michelin in making new investments in the joint venture.
Nikolić pointed out that the factory has the same number of workers, 2,500, as it did when "Tigar" decided to sell the business. The workers have obtained a "safe sanctuary", and management is working as successfully as always.

SIEPA expects investments of 2 billion EUR in 2010

2010-01-05T15:42:00.002-08:00

Belgrade, Dec. 29, 2009 (Serbia Today) - Foreign investment in Serbia in 2010 may reach 2 billion EUR, mostly from suppliers of car parts for "Fiat", said Vesna Perić, CEO of the Investment and Export Promotion Agency (SIEPA) as reported by Beta Press Agency .
“Serbia needs between 3 and 4 billion EUR, but achieving 2 billion EUR worth of investments would be a very good result as well” - Ms. Perić said. According to her, there are many electronic and metal /plastic processing companies, suppliers of "Fiat", that will invest in Serbia in 2010. It was good, she said, that none of the investors had given up in 2009, but had waited to assess global demand in 2010 and 2011.
SIEPA's plan for 2010 is to focus on exporting domestic finished products to the former Soviet Union and North Africa. The Western European market is significant for semi-finished products because it is the region where Serbian companies have enough space to be competitive and become suppliers.
Perić also said that SIEPA would obtain 306m RSD from the budget for the year 2010. “We are satisfied with the fact that we are going to receive more than we got the last year (240m RSD) because the Government has recognized the need for larger funds for the growth of export and foreign investments” . The funds will be spent on organizing more trade fairs and on more market research. SIEPA has the program for internationalization of companies, according to which it covers 50% of costs for introduction of certificates, re-certification, standardization and other marketing activities that are necessary for export - said Perić and invited companies to apply for the program.
She said that Serbian companies signed contract worth 30m EUR at the trade fairs in foreign countries in 2009. Perić estimated that it was very good that Serbia had attracted 2 billion USD worth of foreign investments in the year of the financial crisis, the same as in 2008.

RTB "Bor" and "Glencore" to open gold mine

2010-01-05T15:42:00.001-08:00

Belgrade, Dec. 31, 2009 (Source: eKapija) - Mining-Smelter Basin (RTB) "Bor" and multinational company "Glencore", one of the world's most powerful mining corporations, will start the business of activation and exploitation of gold mine "Čoka Marina 1", near Majdanpek.
This was confirmed for "Novosti" by Blagoje Spaskovski, the Director General of RTB "Bor".

- In agreement with the representatives of "Glencore", following the activation and commencement of exploitation, the concentrate from "Čoka Marina 1" will be melted in their smelter in Kazakhstan - Spaskovski explains.

- That is because mine "Čoka Marina 1" is rich with gold, silver and copper, as well as lead, zinc and cadmium. Therefore, that raw material can not be melted in the smelter in Bor since we do not have the technology to prevent serious environment pollution, which would be the result of melting of that concentrate in Bor-based smelter.

"Čoka Marina 1" has the verified reserves of about 240,000 tons of ore, about 4.4% of which is copper, 14 g per ton is gold, and nearly 100 g per ton is silver. Let us just say that the deposits with 1% of copper and 2 g of gold per ton are considered as exceptionally rich.

- Exploitation of "Čoka Marina 1" will bring as the net profit of about 28m USD - Spaskovski points out.
By the way, this mine was discovered in 1981, but it has not been exploited to the date because there has been no appropriate technology for melting the concentrate from that deposit.

The Target Inflation Rate for 2010 – 6 pct

2009-12-29T13:29:00.001-08:00

Belgrade, Dec. 22 2009 (Serbia Today) – According to Serbian News Agency Tanjug, the main goal of the central bank's monetary policy in 2010 will be achieving its target inflation of six percent.
The National Bank of Serbia (NBS) said today that this figure will have a margin of plus or minus two percent.
The target inflation rate for 2011 is 4.5 percent, with a margin of plus or minus 1.5 percent, while the rate for 2012 is four percent plus or minus 1.5 percent, an NBS memorandum on inflation targets states.
According to the NBS, the established inflation targets reflect the intent to achieve stability of prices through gradual reduction of inflation, without causing macroeconomic disturbances.

Atlas Holding Company to expand

2009-12-29T13:28:00.000-08:00

Belgrade, Dec. 21 2009 (Source: eKapija) - Atlas Holding Company, a member of the Austrian "Asamer" group of companies, announced last Tuesday (December 15, 2009) that its priority for 2010 was to establish new partnerships in markets in this region and in the EU where it has never been before.
Since 2001 Atlas has invested 75m EUR in the production and processing of stone and other building materials in Serbia. This year Alas invested 14.5m EUR in "Zorka Keramika" and in "Keraben, a Spanish company that produces ceramic tiles. The Company's priority in 2010 and thereafter is to invest an additional 2-3m EUR in order to produce and market 2m square meters of "Keraben" tiles in Serbia. Zorka Keramika" has begun to invest 750,000 EUR in new energy saving production processes, aimed at reducing consumption of fuels by 15%.
The subsidiaries of Atlas Holding Company are "Zorka Keramika", "Zorka Opeka", "Zorka Alas Kamen" and "Alas Rakovac".
Atlas also announced that it fulfilled its investment plans and kept its workers despite the economic crisis of 2009, which impacted negatively on public construction works financed by the state.

Fund "KD Exclusive" to merge with fund "Triumph"

2009-12-20T13:48:00.000-08:00

Belgrade, Dec. 16, 2009 ( Source: eKapija) - Investment fund management company "Citadel" has been given the consent by the Securities Commission for the merger of fund "KD Exclusive" and fund "Triumph".
According to the plan of "Citadel", the merger of investment funds will be carried out on February 11th.
"KD Eksluziv", the open-ended property growth fund run by the namesake Belgrade-based company, will cease to exist upon the merger.
That fund will transfer whole property and all obligations to open-ended fund "Triumph", while the members of "KD Ekskluziv" will become the members of fund "Triumph".
The investment aim of "Triumph", as people from that property growth fund announced, will remain the same after the merger with "KD Ekskluziv", and that is high level of returns on invested funds, that is, high level of growth of net property and value of investment unit.
The decision on merger was preceded by the analysis of economic justification that showed that the merger of funds was in the best interest of the investors of both funds.
In addition, the merger will contribute to increase in the profitability of the fund created through the merger since overall fixed costs will be reduced.
"Citadel", a part of international finance group "Citadel Asset Management", manages four funds in Serbia - "Triumph", growth fund "Focus premium", property preservation fund "Focus cash fund" and closed-ended investment fund "Triumph Elite".
There are 14 open-ended investment funds in Serbian market, 8 of which are property growth funds, 3 funds are property preservation funds, and 3 funds are balanced funds.

USAID Partners and SEIPA Bring 2000 jobs to Prokuplje

2009-12-14T14:23:00.001-08:00

Belgrade, Dec.10th (Source USAID) - The cooperation from key partners the two key partners USAID established Local Economic Development (LED) and the Serbian Investment and Export Promotion Agency (SIEPA) has made a significant contribution to the Serbian job market, and brought a windfall to the residents of Prokuple by bringing in two thousand jobs.
A job fair was held where the applications of approximately 500 people will be chosen to work at a new factory. Five hundred more should be hired by the end of 2010 and then eventually another 1,000.
Leoni, a German manufacturer of automotive cables and wiring, had agreed to invest 15 million Euros in Prokuplje to buy and convert the defunct Fiaz brake factory into a modern car wiring plant. But how Prokuplje managed to come out ahead in competition with other locations in Serbia and the region is one of the best economic development stories of the year.
Leoni’s decision to invest in Serbia, despite strong competition from Bulgaria owes much to the USAID-established (LED) Office of Prokuplje and the (SIEPA).
“SIEPA called in October saying that the German company Leoni is inquiring about locations in Serbia, and said he had referred them to our municipality’s website, on which our office had put all information relevant to potential investors in our municipality. Soon after, representatives at Leoni made its first visit to Prokuplje, and I think that we had an exceptional presentation,” recalls Sveta Budjic, Head of the LED Office at the time, according to a USAID news release.
The LED office in Prokuplje together with the National Alliance for Local Economic Development (NALED), met with the Minister of Economy and Regional Development Mladjan Dinkic. This meeting lead to the government agreeing to offer a significant stimulus “carrot” to ensure that Serbia would not miss out on such a job creation opportunity.
The critical support from LED appears not just to have been the advocacy with Leoni, nor even the financial incentive provided by the government, but some quick response to some deficiencies at the Fiaz plant.
“We got in touch with the State Secretary at the Ministry of the Environment and Spatial Planning and people from USAID’s project. They helped us resolve this issue, which would have cost us the investment. Experts from USAID provided professional and technical support and recommendations, based on which the Ministry invested 300,000 Euros to clean and decontaminate the site”, says Sveta Budjic from LED.
Smaller businesses will be getting a significant shot in the arm the arrival of Leoni. Business Incubator in Prokuplje, which had provided technical assistance to the LED office, has already drawn up a contract with Leoni to lease them some office space and to provide consulting services, a local textile company will supply worker’s uniforms, and a carpentry manufacturer will be involved in replacing doors and windows for the new factory.
This Business Incubator, which opened in 2007, with the support of USAID is one of the most successful in the country – employing about 80 individuals in 15 companies. Almost 70% of the businesses which started there have survived on the market and are now expanding their activities.

Besna Kobila: Southern Serbian Skiing

2009-12-09T15:51:00.001-08:00

By: Bojana Jankovic
Vranje, Dec.8th 2009 (Serbia Today) - The public company “Ski-resort Besna Kobila” announced that will be open for the New Year. Besna Kobila is picturesque mountain with great snow conditions the year round. It has recently begun to develop its slopes and the skiing facilities with the help from the Serbian Government.
“Thanks to the Ministry of Economy and Regional Development access roads are completed and the main lodge for the mountain, which has a capacity of 56 beds and 3 apartments, will be ready for our big opening this New Years,” said Mr. Dejan Manic, director of ski resort Besna Kobila.
Located in Southern Serbia, just 42 kilometers away from city Vranje, Besna Kobila is part of the beautiful mountain ranges that typify the region. The new investment in this region promises to open up previously undiscovered terrain.
“Ski-resort Besna Kobila was opened 20 years ago with just one ski lift. This was the starting point for the winter tourist center in the region, but demand was not so great at the time. With the completion of the Besna Kobila Lodge we have come a long way,” said Manic.
Manic sees great things for this humble ski center, and believes that the beauty and the terrain will help to make Besna Kobila a draw for future investment and more winter sports fans.

Russian Loan Deal Reached

2009-12-07T08:03:00.001-08:00

Belgrade, Dec. 7, 2009 (Source: Serbia Today) Serbian PM Mirko Cvetković said a Russian loan of 200 million dollars for the budget has been agreed upon, but not formalized yet.
The interest will be around 3.6%, the second lowest after the one from the World Bank or the EU, he told Novosti.
The public debt forms 31.6% of the GDP and includes old foreign currency savings, so the state debt to foreign creditors actually amounts to some 20% GDP. The total foreign debt is 72.2% of the GDP, as it includes debts of Serbian firms with foreign creditors.

Support for Development Projects in Uzice

2009-12-07T08:01:00.001-08:00

Belgrade, Dec. 7, 2009 (Serbia Today)– First Deputy Prime Minister and Minister of the Interior Ivica Dacic said today after talks with Uzice City authorities that he advocates equal development for all of Serbia.
Dacic stressed that he supports development projects in the Uzice region, including construction of a road network, an airport, a free trade zone, a regional waste depot etc.
Dacic and Uzice Mayor Jovan Markovic visited today the building site of a development center, which is being financed by the Uzice authorities and the Interior Ministry.
The facility, which will provide 620 square meters of office space, will accommodate certain city administration departments and citizens’ organizations, while the police will also acquire space for some of its departments.
Speaking about the latest outbreak of fire at the Prvi Partizan ammunition factory, Dacic stressed that special attention must be paid to the issue of who takes responsibility in such cases.
“I feel concerned over the fact that another fire broke out in the factory after the tragic accident of September 3 which killed seven workers. Fortunately, this time there was no harm done to life or property, but we must establish why the fire broke out,” said Dacic.
He confirmed that the police have submitted to the court their report on the causes and consequences of the explosion in September and that the Prosecutor’s Office has initiated proceedings.

Serbian and Chinese Chamber of Commerce Sign Agreement

2009-12-06T14:46:00.000-08:00

Belgrade, Dec.5th, 2009 (Serbia Today) - The Serbian Chamber of Commerce has signed an agreement on cooperation with the Chamber of Commerce and Industry of China fior for the export and import of machinery products.
The Serbia-China Business Forum the Memorandum of cooperation between the Serbian Chamber of Commerce and CCI China for the export and import of machinery produce.
The President of the China Chamber of Commerce for export and import of machinery products Zhang Zuing and President of the Serbian Chamber of Commerce Milos Bugarin, signed the memorandum of cooperation with the aim to promote and expand the trade and investments between machinery and electronic industry of Serbia and China.
Both countries will help each other to exchange the machinery and electro products and services, to provide information on the cooperation and to create possibilities for the partnership among their members. The chambers will organize visits of business delegations from both countries, research markets and organize business seminars together.
China and Serbia will provide information on main international exhibitions and fairs being organized in their markets with a view to promoting bilateral trade and services of machinery and electronics.

Energy sector investments expected in Kostolac

2009-12-06T14:45:00.001-08:00

Belgrade, Dec.5th, 2009 (Serbia Today) - The Development of a new a new thermoelectric plant is expected to be built in Kostolac with the help of a loan from China, announced Interior Minister Ivica Dacic and Energy Minister Petar Skundric.
The project is plans for the increasing technical efficiency and a restoration of the Drmno mine for the production of 12 million tons of coal yearly, which is a prerequisite for building a new bloc of thermoelectric plants to produce between 350 and 600 megawatts.
Interior Minister Ivica Dacic and Energy Minister Petar Skundric said that the credit arrangement that is being negotiated with Chinese partners would secure funds for new projects in Kostolac. The project is estimated to cost EUR 850 million, according to Serbian news service B92. Skundric said that the investments which are to be coordinated between the Serbian government and the Chinese investors would be worth close to EUR 1 billion.
“Next year, we will begin the largest investment project in the Serbia electro-system in Kostolac. We have done everything that was necessary and created the conditions for reaching an agreement for securing funds for these projects,” Skundric said.
Dacic said that the Serbian government has formed a working group headed by the Energy Minister, which would lead the negotiations for securing the credit that would finance these projects in the energy sector.
“There is an interest being shown by potential Chinese partners that could secure as much as EUR 850 million in the revitalization and construction of new capacities. I think that about EUR 600 million is expected to be needed for the construction of the new mine and plant. I hope that the negotiations will be completed as soon as possible,” Dacic said.

NBS: Easier Loan Approval Now

2009-12-04T02:29:00.001-08:00

Belgrade, Dec.4, 2009 (Serbia Today) - Vice Governor of the National Bank of Serbia, Mira Eric-Jovic, announced at the Fifth Annual Financial Services and CFO Forum, that this institution would relax refinancing loan regulations.
“The regulations being prepared by the NBS will provide free banks to have no obligation to create additional reservations for refinancing loans, which means that they shouldn’t be more expensive,” Eric-Jovic.
The Vice Governor underlined that the existing reserve for loans in domestic banks are far higher than the current level of unsecured loans.
“Even if the level of default claims increased to 30%, the banking sector wouldn’t have capital adequacy lower than 16.4%, which shows that domestic banks are highly solvent, especially when compared with banks of countries in the region,” she said.The current level of loans with collection periods of longer than 90 days – amounts to about 10%.
Commenting on the announcement of KBC Bank regarding its intention to withdraw from the domestic market, the Vice Governor said that a potential owner would have to obtain approval from the NBS, which means it is a mere name change, which will not affect clients.
“It means that debtors have to pay their obligations, and that depositors can collect their deposits whenever they want,” she said.

Russia, Serbia in Nuclear Plant Talks

2009-12-03T05:56:00.000-08:00

Belgrade, Dec.2, 2009 (Serbia Today) - The governments of Russia and Serbia are in negotiations to build a nuclear power plant in Serbia, the Russian ambassador to Belgrade says.
"The construction of a nuclear power plant in Serbia is being given serious consideration," Aleksander Konuzin was quoted as saying this Monday.
He stated that Serbia wishes to export electricity, and added that the country has the resources to do so.
"Russia is prepared to help Serbia with this intention through partnership and joint investments," the Radio-Television of Vojvodina (RTV) reported.
Konuzin reminded those present that Serbia had recently reached agreements to build hydro electric plants with Germany and Italy, and that Russian experts are currently working on modernizing the Djerdap 1 (Iron Gate) plant on the Danube, and that Russia is also ready to build more hydro electric power plants in Serbia.
The ambassador also noted that the construction of several natural gas heating plants has already been agreed.

Bridge Over River Drina

2009-12-03T05:54:00.000-08:00

Belgrade, Dec.1, 2009 (Serbia Today) - Uzice Mayor Jovan Markovic’s has launched an initiative to build a 90 kilometer highway from Pozega in Western Serbia, across the Drina River, to Visegrad, in the Serbian enclave of Bosnia-Herzegovina, according to Belgrade daily Danas.
Prime Minister of Republic Srpska (RS) Milorad Dodik and Serbian Prime Minister Mirko Cvetkovic has accepted Uzice Mayor Jovan Markovic’s initiative to build Pozega-Visegrad highway.
Serbian Prime Minister supported the idea after their recent meeting in Banja Luka.
It is estimated that the investment would be worth approximately EUR 250 million and the governments of Serbia and Republic Srpska would provide the investment.
Experts have proposed two routes for the future highway, one, favored by Markovic and Dodik, that would go from Pozega, Uzice, Kotroman to Visegrad and Podromanija.
The second route would run from Pozega and Uzice, through Bajina Basta, Fahovici and Han Pijesak to Podromanija.
“The highway must be a government issue and I am sure that the Serbian government will support our initiative. Since connecting the two countries is of utmost importance, the size of the investment should not be an obstacle,” said Markovic.
Dodik stated that this project is a “great chance for development for both Serbia and RS, that is, Bosnia-Herzegovina.”
The initiative to build the highway was also supported by Visegrad Mayor Tomislav Popovic.
“The construction of this highway would connect Visegrad and Serbia and bring us closer to Europe. The town would become a tourist destination because we have a lot to offer and the highway would attract foreign investors, from which not only Visegrad would benefit, but also RS and Bosnia-Herzegovina,“ said Popovic.
Infrastructure project such as bridges and highways are already contributing to Serbia’s economic recovery, and it was announced the unemployment in Serbia decreased by 1.36 % in October compared to September’s rate, according to the National Employment Service.
Of the total number of unemployed people in Serbia actively looking for work, of which there are 727,000, more than half are women, according to Serbian news service B92.
Of the total number of unemployed, 64 % have been unemployed for a long period of time, which means that they have been looking for a job for over a year.

IBRD Loan for USD 200 Million Signed

2009-12-03T05:53:00.001-08:00

Belgrade, Nov 30, 2009 – Serbian Minister of Finance Diana Dragutinovic said on Friday that the Serbian government signed the USD 200 million loan agreement with the International Bank of Reconstruction and Development (IBRD), and finalized this phase of the planned budget stabilization program.
Dragutinovic said at a press conference that the World Bank gave final approval for the USD 500 million loan to Serbia on November 17, and the document was finally prepared for signatures this last week.
The USD 200 million installment of the loan will be provided this year. Dragutinovic said that the Serbian Parliament is expected to ratify the bill concerning the loan by the end of this year.
Dragutinovic explained that there are two loan agreements, one of which concerns funds for supporting the private and financial sector and the other is part of the program loan for supporting public financing and stabilizing the budget.
The loan has annual interest rate of 1% and is to be repaid over the next 20 years.
Head of the World Bank Office in Serbia, Simon Gray, said that the loans for assisting the Serbian budget have been approved in order to help the public sector reform process and to create better conditions for the development of the private sector.

Corridor 10 Open

2009-12-03T05:52:00.001-08:00

Belgrade, Nov.30, 2009 (Serbia Today) - The fruit of foreign and Serbian investment can finally be enjoyed now that both sections of a ten kilometers stretch in the Corridor 10 freeway are open for traffic. Ecology and Spatial Planning Minister Oliver Dulic said that the completion of these sections has set the standard for the functioning of public works in Serbia.“What I can proudly say is that this is the first time a highway was built under the new construction licensing procedures, within the budget, and under the new quality standards for Serbia’s highways,” said Dulic.
Dulic said that all section of highway from Horgos to Belgrade will be complete by the end of 2011, according to Serbian news service B92.
“The fact that there were no problems during the construction of the roads is an important sign. There were no problems with payments to workers and the construction companies are satisfied with their participation in the project, which is important for future cooperation,” Dulic said.
Work will begin in the spring on another 20 kilometers of highway between Horgos and Belgrade, and once it is finished there will finally be an updated highway linking Belgrade and Subotica.

EUR 5 Billion for Infrastructure by 2012

2009-12-03T05:50:00.000-08:00

Belgrade, Nov.28, 2009 (Serbia Today) - The recent formula of working with international lenders and builders to take on large scale infrastructure projects has done much to stimulate the economy and forge closer economic ties with world economic leader such as China, Germany, and Russia.
In recognition of the importance of such projects in bolstering the Serbian economy, Prime Minister Mirko Cvetkovic announced that Serbia will invest more than EUR 5 billion in developing its road, railway and energy infrastructure by 2012.
"We will invest more money than we have in infrastructure, because that is an investment in Serbia's future," Cvetkovic stressed an article published in Belgrade weekly NIN.
This would increase the country's economic activity significantly, said the premier, and announced that the budget deficit would be "eliminated within four years," said Cvetkovic, according to Serbian news service Tanjug.
Describing the government goals for 2010, Cvetkovic stated that the chief aims were a fast economic recovery and an increase in the standard of living.
He put macroeconomic stability and financial discipline as the goals of the 2010 economic policy.
"One of our first aims will be to balance the budget, meaning to eliminate the budget deficit within four years," said Cvetkovic.

Automotive Industry Reduces Trade Deficit

2009-12-03T05:49:00.001-08:00

Belgrade, Nov 27, 2009 (Serbia Today) – Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said today that the automotive industry might be the chief support for reduction of the foreign trade deficit in the middle term.
Speaking at the conference "Improving the approach to international market for producers and suppliers in the automotive industry in Serbia", Dinkic said that in light of the new investments that are being planned, the Ministry of Economy and Regional Development is sure that that it will generate exports of over EUR 1 billion per year.
He said that over 150,000 people live from the automotive industry and that there are 86 companies in that field right now, of which one third are foreign - mostly from Slovenia, Germany and Italy.
The Deputy Prime Minister said that agreement with the Italian company Breda Menarinibus will be signed in December, for the production of buses in the Ikarbus factory.
Speaking about producers who have already announced that they will begin production in Serbia, Dinkic said that these are German company Drexel Maier, Slovenian Grah Automotive, which has already positioned itself on the Serbian market and Dutch VDL Bus Chassis which will make buses with Novi Sad-based Neobus and export them to the EU market.
Dinkic said that Fiat's investment will be the biggest and further large investment is expected to be released by the end of this year.
Speaking about incentives for those who wish to make production in Serbia, he said that the state is paying between EUR 3,000 and EUR 5,000 per new workplace and financing training through the National Employment Service, which is EUR 900 per trainee.
Participants in the conference agreed that the formation of the car cluster in Serbia in 2005 and its putting into work in 2007 has led to significant results, such as quicker deliveries, higher worker productivity and lower costs.
Director of the Serbian automotive cluster Igor Vijatov said that Serbia's automotive cluster has 39 members, 34 companies and five faculties and scientific institutions.
A cluster means a network of companies and institutions with the common aim of increasing competitiveness and attracting better suppliers to the sector.

Serbia, Kuwait Boost Bilateral Relations

2009-12-03T05:46:00.000-08:00

Belgrade, Nov 26, 2009 (Serbia Today) – Serbian Prime Minister Mirko Cvetkovic and Kuwaiti Prime Minister Sheikh Nasser al-Mohammed al-Ahmed al-Sabah met earlier this week in an effort to establish closer cooperation and increased economic ties.
Following the meeting with Al-Sabah, Cvetkovic told the press that the door to prospective Kuwaiti investors are open in Serbia, adding that economic cooperation between the two countries is the best way to overcome the global economic crisis.
Cvetkovic noted that Serbia and Kuwait have had satisfactory relations for quite some time, voicing his belief that talks in Belgrade will strengthen the political dialogue and cooperation in the economic, financial, investment and cultural sectors, military industry and other spheres.
Cvetkovic noted that the overall trade between the two countries, although much greater in the past, stood at less than US $500,000 in the first half of 2009, adding his hopes that it will increase in the future.
Al-Sabah, who is heading the Kuwaiti delegation on its official visit to Serbia, voiced his gratitude for Serbia’s support during the Iraqi occupation of Kuwait led by former Iraqi strongman Saddam Hussein.
You stood by our side in the international arena during those events, you were devoted to international law and we are deeply grateful for that, the Kuwaiti Prime Minister said.
He said that Serbia and Kuwait have close political, economic and cultural ties.
After the meeting, Serbian Culture Minister Nebojsa Bradic and Kuwait’s Foreign Minister Sheikh Mohammad al-Salem al-Sabah signed a Program of Cultural Cooperation between Serbia and Kuwait.
An agreement on tourism cooperation was signed by Serbian Minister of Trade and Services Slobodan Milosavljevic and Kuwait's Commerce and Industry Minister Ahmad al-Haroun. Another agreement on economic and technical cooperation was signed by Serbian Minister of Labour and Social Policy Rasim Ljajic and Kuwaiti Finance Minister Mustafa al-Shamali.
A an agreement concerning civil aviation was signed by Director General of the Civil Aviation Directorate Nebojsa Starcevic and Head of Kuwait’s Civil Aviation Favaz Abdul Aziz al-Farah.

Galenika’ to be Sold Next Year

2009-12-03T05:44:00.000-08:00

Belgrade, Nov.26, 2009 (Serbia Today) - Pre-qualification tender for the sale of ‘Galenika’ shall be announced by the end of the month, announced Vladislav Cvetkovic, Acting director of the Privatization Agency.
“We shall call on the investors to express their interest in a letter of intent in which they shall be expected to present their development plan for the company. ‘Galenika’ is an established company and the Government expects only qualified bidders,” said Cvetkovic, in an interview with Serbian daily ‘Blic’.
Q: Is your optimism based on any concrete reason?
“At the moment the list of potential serious investors in 'Galenika’ is rather long. We want to choose a the best buyer of ‘Galenika’ not only in the view of money but in the view of the long term investment plans as well.”
Q: Recently you announced privatization of public enterprises in the next year?
“We expect strategy for privatization of public communal enterprises to be finished soon by the Ministry of economy and regional development. The model of privatization shall not be sale of those enterprises but securing investors and their capital for them’.
Q: What about privatization of sport clubs?
“The existing situation in these clubs is not in the interest of either the State, the citizens, or the clubs. The equity division in these clubs is very complicated and should be determined first. The State shall not tolerate such situation to continue. It shall not be the classic way of privatization but one that shall secure development of sports and quality management”
Q: Is any big privatization planned in 2010?
“Privatization of Telecom Serbia, JAT, Nikola Tesla Airport, or EPS should not be expected to take place in the next year”
Q: About one fifth of privatization contracts have been cancelled. Isn’t that too many?
“It is important to say that there is large number of companies we tried to sell several times. Privatization has been going on for a long time and had it been quicker and more efficient we would have been more ready for the potential buyers. Nothing was invested in those enterprises in the past 20 to 30 years’.

NIS Accepts Auditing Reports

2009-12-03T05:42:00.000-08:00

Belgrade, Nov.25 (Source - B92) Serbian Oil Industry (NIS) managing board on Monday confirmed that the company had losses of RSD 8billion in 2008.

The losses will be covered from the budget, said member of the board Dusan Petrovic.

Two credible auditing firms calculated that instead of the reported RSD 2 billion profit, NIS in fact lost RSD 8 billion (EUR 85 million) before 51% of the previously state owned company was sold to Russia's Gazprom in early 2009.

Petrovic told B92 that a decision on how to cover the losses will be made in the first half of next year, but that he was convinced the money would come from the state budget.

"The citizens have no reason to worry because I am convinced that as soon as in 2010, NIS will make progress and a serious profit," said he.