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The Government of the Republic of Serbia

In the service of citizens

Strengthening road infrastructure speeds up EU integration

Nis, 13 July 2005

Serbian Prime Minister Vojislav Kostunica said during a visit to a construction site on the Nis and Dimitrovgrad highway project today that the strengthening and expanding of the road infrastructure in Serbia is of great importance in the process of European integration.

Prime Minister Vojislav Kostunica and Ministers Velimir Ilic and Predrag Bubalo during the visit to the construction site of the Nis-Niska Banja highway

Kostunica, accompanied by Minster of Economy Predrag Bubalo and Minister of Capital Investment Velimir Ilic on a visit to the Nisava district, said that one of the government’s strategic goals is to build a robust road infrastructure in the country.

He said that a country is close to Europe as much as its road infrastructure is developed and he expressed belief that the heritage of this government, when it comes to building, will be substantial.

Ilic said that the works on the highway section between Nis and Niska Banja are going according to plan and he added that the cost of the project, combined with another beltway that is being built around Nis, comes to 396 million dinars.

The Serbian government’s delegation also visited the machinery producer Masinska Industrija Nis (MIN), where Kostunica said that the government is doing everything to encourage the economy in this region and to make people’s lives easier.

He said that MIN is a driving force of economic development in Nis and he announced that the restructuring and privatisation of enterprises in this area is planned for.

Bubalo said that MIN can count on support from the Serbian government when it comes to exports.

Kostunica said that in talks with local businesspeople, officials, and citizens of Nis focused on the development of infrastructure, economy, and local self-government.

He said that the Serbian government believes that economic progress and better living standards depend on the development of infrastructure.

Kostunica also said that the economy must be developed to an extent that will make it competitive in the region and beyond and he added that privatisation makes full sense only if it means new jobs and better living standards.

Kostunica announced that a new industrial park, with 250 employees, will be opened in Nis in September.

Ilic announced that the highway concession could be granted by the end of the year and he confirmed that a total of 250 million dinars has been approved towards building local roads around the city of Nis. He recalled that some €6 million has been set aside for the construction of beltways around Nis in the past two years.

Bubalo said that recent changes to the Law on privatisation have made a number of large public sector enterprises more attractive for buyers and he expressed the hope that privatisation in Serbia will be completed by early 2007.