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The Government of the Republic of Serbia

In the service of citizens

Large number of infrastructure investments to be realised in the next two years

Nis, 27 July 2005

Serbian Minister of International Economic Relations Milan Parivodic said today that Serbia will see a great number of infrastructure investments in the next two years.

Milan Parivodic, left, and Eugenio Sidoli at today's press conference

Author: Tanjug

During a visit to tobacco company DIN in Nis, Parivodic said that investment will mainly go to the road infrastructure, gas pipelines, and telecommunications, because these are foundations crucial for the functioning of a country’s economy.

Aside from a large number of infrastructure investments, the country should not only expect direct investment but also investment in existing plants, said Parivodic and added that a large number of companies will not be able to find a buyer in the privatisation process. He explained that their property will be sold out as real estate suitable for investment.

Parivodic pointed out that the Serbian government wants to protect existing investors, because their success means Serbia’s success. He recalled that the privatisation of DIN represents the biggest investment in Serbia since October 2000 and he reiterated that he expects an investment boom in Serbia is September.

DIN General Manager Eugenio Sidoli said that output at the Nis factory has been increasing and he explained that infrastructure investment will be followed by a continuation of investment in products, employees, and production process.

DIN is one the most successful factories in Nis, which was bought in August 2003 by Philip Morris for €387 million.

The new owner pledged to invest €64 million in the factory over five years and not to lay off workers.

After the privatisation, 1,450 workers, or some 60 percent of the workforce, left DIN voluntarily. The average severance payment was around €54,000, and it cost the company total of €78 million by the end of 2004.