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The Government of the Republic of Serbia

In the service of citizens

RSD 500 million for infrastructure projects

Belgrade, 7 September 2007

Serbian Minister of Trade and Services Predrag Bubalo said today that the government at its session today adopted amendments to the Decree on establishing a programme on distribution and use of funds for the projects of road, communal, energy and tourist infrastructure in 2007, and RSD 500 million will be allocated for this purpose from the budget.

Predrag Bubalo

Bubalo told a press conference that RSD 156.5 million will be spent on building tourism facilities and infrastructure in Palic, while for Divcibar a sum of RSD19 million is intended for projects of building a water supply system and electricity supply facilities.

He said that a sum of RSD 224.7 million is envisaged for Mt Stara Planina for reconstruction of the electricity network, roads, parking spaces. Funds worth RSD 30 million are intended for Gornje Podunavlje for construction of hydro-technical facilities.

According to the Minister, in Donje Podunavlje a sum of RSD 23.8 million is to be spent on regulating and using land for recreation, making footpaths, and RSD 12 million on lighting facilities in the Resavska caves.

The Minister said that RSD 11 million will be spent on building an electricity transformer station, while Sokobanja will get an amount of RSD 11.5 million for renovating streets, pavements and footpaths. Golij received a sum of RSD 3.5 million for completing spatial planning, and Vlasina was allocated RSD 8 million for financing the tourist information centre Surdulica.

Bubalo said that the government adopted amendments to the Decision on allocation of funds envisaged by the Law on the budget of the Republic of Serbia for 2007 for realisation of the National Investment Plan.

The government today approved the Report on the work of the Commission for Public Purchase of Consultancy Services for preparation and implementation of the strategy for privatisation of the public air company "Jat Airways", thereby selecting Rothschild as the privatisation advisor. The job is worth nearly €3 million, said Bubalo.

He said that the Information was adopted on the need to realise the project of moving the habitation of Vreoci, which implies providing living conditions to 3,300 residents.

The Minister recalled that the strategy for development of energy in Serbia until 2015 establishes basic goals and directions in this area, as well as the programme for carrying this out.

According to Bubalo, it is envisaged that the area in the municipality of Vreoci for coal production could be thus widened in order to provide uninterrupted and regular production of electricity.

Bubalo said that the government also adopted the Information on the realisation of the project of development of the tourist complex Palic, the basic goal of which is to make an attractive destination for family holidays.

He said that Deputy Prime Minister Bozidar Djelic informed members of the government today that conditions for concluding technical negotiations with the EU have been created and by the middle of October the Stabilisation and Association Agreement will be initialled.

He said that Djelic informed the government that the SAA is nearly complete and a few articles are still to be harmonised at the final and fifth round of negotiations on September 10 in Brussels.

The Minister stressed that the European Commission validated a few proposals by Serbia, and that Serbia accepted a few of their suggestions.

Bubalo said that he will soon travel with Serbian Minister of Energy and Mining Aleksandar Popovic and Serbian Minister of Education Zoran Loncar to Banja Luka to work on continuation of the realisation of the agreement on establishing special parallel relations between Serbia and Republika Srpska.

He said that the government adopted the Information on the first session held yesterday by the Council for Cooperation between Serbia and Republika Srpska for monitoring and implementing the agreement on special parallel relations.

Bubalo said that the first meeting will be held with Republika Srpska ministers of energy, trade and education and agreement will be reached with them on realisation of the first joint projects in these three areas.

According to Bubalo, Serbian Foreign Minister Vuk Jeremic informed today members of the government that Belgrade and Podgorica held an exchange of demarche today.

He stressed that the government decided that it recognises all internationally recognised countries and the government’s firm stand was expressed that a solution must be found for Bishop Filaret’s entry into Montenegro and that he should be allowed to resume carrying out his duties.