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The Government of the Republic of Serbia

In the service of citizens

€339 million to be invested in transport infrastructure development

Belgrade, 31 July 2006

Serbian Minister of Finance Mladjan Dinkic said today that within the framework of the National Investment Plan €339 million will be invested in the development of transport infrastructure and priorities are Corridor 10, a highway through western Serbia, border crossings and regional roads.

Speaking at a press conference regarding the presentation of the sectoral plan for investments in transport infrastructure within the framework of the National Investment Plan, Dinkic said €214 million will be secured from privatisation proceeds, and €125 million in loans, adding that significant investments are envisaged also in local infrastructure in less developed regions.

He stressed that investments in the area of Belgrade-Novi Sad and Belgrade-Pozega are particularly important, as well as the investments in southern branch of Corridor 10 towards Nis- border with Bulgaria and Leskovac-border with Macedonia, for which a sum of €10 million has been allocated.

When it comes to regional projects, the most important ones include construction of the bridge at Raca, for which €6 million have been secured, the Kragujevac – Batocina highway, roads important for tourism – towards Mt. Stara Planina, from Mokra Gora toward Mt. Tara, the Raska-Golija-Ivanjica road, and the Ivanjica – Studenica road, said the Minister of Finance.

According to Dinkic, €85 million will be invested in the construction and repair of local roads, funds will be distributed according to surface area, density of population and degree of development in the municipality, and money will be given out in phases as individual projects are completed. Similarly, €10.5 million will be invested in the border crossings of Ribarci, Gradina, Batrovci, Presevo and the border crossing with Romania.

Serbian Minister of Capital Investment Velimir Ilic pointed out that construction works will be particularly difficult in the areas Studenica – Ivanjica, for which a sum of €6.13 million has been allocated. The key project is the ring-road around Uzice, which the EU insists upon, but which is an extremely expensive project worth €9.5 million. According to Ilic, a bridge must be constructed there towards Kadinjaca, which will be the highest one in Serbia.

Ilic said that it is very important to eliminate “black points”, and added that €4.5 million is intended for Stopajna where 100 people die annually. He added that ring-roads around Belgrade, Novi Pazar and monasteries are very important.

The Minister said that investments in local roads and hillside and mountain areas are very important for stopping population outflow from these areas, especially in areas of Kursumlija, Bosilegrad, Dimitrovgrad and western Serbia.