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The Government of the Republic of Serbia

In the service of citizens

Austrian Development Agency sets aside €250,000 for Srbijasume

Belgrade, 21 December 2004

Serbian Minister of Agriculture, Forestry and Water Management Ivana Dulic-Markovic and representatives of the OBF AG Austrian consulting firm signed today an agreement on a €250,000 donation from the Austrian Development Agency (ADA) for the restructuring of Srbijasume, a public forest management company.

Dulic-Markovic stressed that the restructuring of Srbijasume must be a development programme, and not a social one. She added that this company should make up much more than the current 0.5 percent of GDP.

The Minister said that the realisation of this project will give back strength to forest farms and show which parts of the company can be privatised, and which are of public importance for the country.

Head of the Serbian Forest Directorate Aleksandar Vasiljevic said that a project on developing a plan of implementation of Srbijasume's restructuring will be realised over the next six months. He went on to explain that employees must also show support for the plan so that it could be successful.

Vasiljevic said that the realisation of the project is the first step in further restructuring of the company. It will be followed by a reduction in the number of employees, from 3,800 to 2,500.

Austrian Ambassador to Serbia-Montenegro Hannes Porias said that this project is very important for Srbijasume and that Austrian forest management experts also worked on its preparation.