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The Government of the Republic of Serbia

In the service of citizens

Competition for NIP funds for 2009 to be announced on March 31

Belgrade, 26 March 2008

Serbian Minister without Portfolio in charge of the National Investment Plan (NIP) Dragan Djilas announced today that the competition for funds from NIP for 2009 will be announced on March 31 and will be open until May 15.

Djilas told a press conference that the government in its session on March 20 decided that the new government should make a decision on the projects funded from NIP.

He pointed out that the forthcoming elections will not affect the implementation of projects from NIP this year and recalled that RSD 47 billion is this year’s budget for NIP, RSD 3.4 billion of which have been used.

Djilas said that the value of NIP-funded projects in central Serbia is RSD 36.6 billion, nearly RSD 9 billion in Vojvodina and RSD 1.3 billion in Kosovo-Metohija.

According to him, 973 projects will be financed this year, nearly half of which was launched earlier.

I expect the maximum use of NIP funds, Djilas said and noted that each unused dinar for investment is lost as it cannot be transferred to next year.

NIP’s strategic priorities are infrastructure projects, which increase employment rate and the level of education, strengthen rural development and create conditions for survival of Serbs and other non-Albanians in Kosovo, he said.

Djilas also note that RSD 2.7 billion has been allocated for works on the Belgrade ring-road and works on sector-4 are expected to be completed by October. He added that constructors have been paid RSD 700 million so far.

He recalled that RSD 800 million from the NIP has been allocated for the overhaul of the Pancevo Bridge and the tender for contractor for the first portion of works is underway.

According to him, the works should begin in mid-May and last between 18 and 24 months. Apart from the renovation, another railway track will be added, noted Djilas.

Djilas stressed that funds from the NIP can be used for financing national and regional projects, however a number of projects is of local importance, which is why every municipality got one project and the minimum sum each of them will be granted is RSD 40 million.

He specified that RSD 300 million has so far been used for stimulating the creation of new jobs and RSD 200 million for improving the condition of the Serbian fire brigades. Djilas also announced that in the upcoming days the decision will be made as to which aircraft for extinguishing fire will be bought.

Djilas told a press conference that the government cannot join the project to construct the Horgos-Pozega motorway unless the concessionaire provides guarantees that the motorway will be completed.

At tomorrow’s session, the government will try to come up with a compromise solution which will give the concessionaries enough time to fulfill the contractual obligations.

Djilas explained that if the concessionaire abides by the contract, the works on the motorway will start on time, but if they submit demands for an alteration of the contract, the government will have to contemplate them carefully.

Djilas said that the government Committee for Economy and Finance decided yesterday to discuss this issue at a government session.