Serbian market has perspective

 
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

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

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

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

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

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

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

 
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

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

 
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

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

 
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

 
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

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.