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The Government of the Republic of Serbia

In the service of citizens

Great contribution of construction industry to economic growth

Belgrade, 26 November 2018

Prime Minister Ana Brnabic spoke today with representatives of the construction industry of Serbia about the improvement of business operations and efficiency in this area.

As one of the key industries in Serbia that is directly or indirectly linked to more than 30 branches of the economy, construction has a huge impact on the GDP growth.

Brnabic underlined that it is a challenge for the government to make this growth sustainable and for it to persist in 2019 and 2020.

The proposed budget for infrastructure investments in 2019 is more than RSD 200 billion, the biggest to date, which means that the construction industry must have the strength to continue being the motor of our growth, the Prime Minister said.

In addition to the continuation of major road and railway infrastructure projects, Brnabic also mentioned the construction of apartments for security service members, the expansion and construction of science and technology parks in Belgrade, Nis and Novi Sad and other facilities of scientific and innovation infrastructure, the projects of completion of renovation and construction of clinical centres in Serbia, community health centres and general hospitals, in which a total of €1 billion will be invested.

She underlined that the proposed amendments to the Law on Public Procurement will eliminate the occurrence of dumping prices and that the greater focus will be on the quality of the offer instead of the price, which has not been the case so far.

The goal of this measure is to improve the financial position of our construction companies and the quality of works made.

The lack of workers is the most pronounced problem in the construction industry and it was discussed at the meeting.

Retraining and the improvement of the capacity for the training of workers for various construction professions was examined as one of the measures for overcoming this problem.

Also, it was pointed out that the introduction of relaxations for the import of construction equipment that is not produced in Serbia will be considered, which will increase the efficiency of realisation of projects.

The participants in the meeting concluded that it is necessary to increase the inspection supervision in order to suppress the gray economy in the construction sector and praised the amendments to the Law on Planning and Construction that will solve in practice many of the problems that builders currently have.

The meeting was also attended by Deputy Prime Minister and Minister of Construction, Transport and Infrastructure Zorana Mihajlovic, Minister of Labour, Employment, Veteran and Social Affairs Zoran Djordjevic, President of the Serbian Chamber of Commerce Marko Cadez, Director of the Public Investment Management Office Marko Blagojevic and Director of the Construction Directorate of Serbia Nebojsa Surlan.