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The Government of the Republic of Serbia

In the service of citizens

Serbian Railways, Zastava Trucks sign contract worth €600,000

Belgrade, 2 November 2005

General Director of Serbian Railways (Zeleznice Srbije) Milanko Sarancic and representatives of Kragujevac-based Zastava Trucks signed a contract today on the purchase of 30 trucks valued at €600,000.

On the occasion, Sarancic said that Zastava Trucks gave the best offer at the tender, adding that trucks will be leased over a five-year period. The company serving as the intermediary in the leasing process is Lipaks, a Serbian company that specialises in leasing Zastava vehicles.

The freight vehicles are essential for the effective and thorough performance of railway services, added Sarancic.

The signing ceremony was attended by Minister of Capital Investment Velimir Ilic who said he was pleased to see a domestic company, Zastava Trucks, take part in a tender and prove it is a quality company and has a market for its products.

He pointed out that a delegation of the International Monetary Fund, whom he met with the other day, had no comments regarding the work of the railway company, and said that it has fulfilled all agreements on restructuring and subsidising.

Serbian Railways should sign a contract on a €140 million loan next year, Ilic said and added that the European Union is expected to provide another €58 million for the purchase of railcars.

The management of Serbian Railways informed Ilic that in three months the tender commission will choose a bidder for the construction of the new central railway station Prokop, for which €200 million of direct investment will be secured.

By mid-2006, the railway bridge near Bogojevo should be reconstructed as well. The project will be financed through a donation of the Belgian and Norwegian governments, along with a €300,000 contribution from the Serbian government. The entire project is worth €750,000.