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The Government of the Republic of Serbia

In the service of citizens

Project for activating potentials along Danube river presented

Belgrade, 5 April 2006

Serbian Assistant Minister of International Economic Relations Gordana Lazarevic said today that the aim of the project called "The integrated socio-economic developmental plan for rehabilitation of the basin of the Middle Danube and the internal system of waterways in Serbia" is to activate Serbia's potentials along the Danube river.

Author: Fonet

Lazarevic told a press conference that the project is based on a Serbian government's initiative that has been accepted by the European Agency for Reconstruction (EAR) as an executive agent of the European Commission and that its aims to create foundations for intensified investment in Serbia for the sake of using the potentials that exist along the Danube.

She stressed that one of the goals of this €1 million project is to create a basis with its quality, scope and ideas for further activities on development oriented projects that would identify areas, towns and sectors to which investment should be directed in the following period.

According to Lazarevic, the first results of the project should be expected by April 2007.

Lazarevic recalled that 80% of Serbia's economy is linked to the Danube basin and that this river used to be a transport hub and that in 1990 alone it brought Serbia $150 million from river traffic.

The Danube potentials in Serbia were restricted and damaged during the economic sanctions and the bombing, Lazarevic said and added that this project opens the possibility for renewing the potentials of this river in the field of traffic and in the development of modern institutions for management of waterways.

Lazarevic emphasized that apart from the development of traffic and economic activities in ports and shipyards, there are also great possibilities for launching the issue of ecological protection of the Danube river and its tributaries, as well as for the development of tourism. She added that this project envisages a full reconstruction of river waterways in Serbia, including the Sava, part of the Morava, the Tisa and all channels that require renovation.

Lazarevic explained that a project committee has been formed which includes the Ministry of International Economic Relations and all competent ministries that will give their contribution and use this project to the maximum for promotion of their activities, so that it could become a good basis for attracting foreign investors and tourists.

Economic Advisor of the European Commission's delegation to Serbia-Montenegro Esmeralda Hernandez-Aragones said that this project fits in the scheme of the European action plan for regulation of the development and use of internal waterways in the Union's territory, which the EU drew up two month's ago and in which the Danube (Corridor 7) has a special place in the trans-European transport network.

EAR's programme manager Hasso Molineus said that the recovery of the Danube basin should contribute to economic development and attraction of foreign investment, which will enable the development of economic sector and create new jobs.