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The Government of the Republic of Serbia

In the service of citizens

Government decides to establish two public companies in the field of energy

Belgrade, 27 January 2005

Serbian Minister of Energy and Mining Radomir Naumov said that, in line with the Law on energy, at its session today the Serbian government brought forth the Decisions on the formation of a public company for production, distribution and trade of electrical energy and a public company for transfer of electrical energy and the management of the transfer system.

Speaking at a press conference held after the government session, Naumov said that these two companies will start working on July 1, 2005. By that time, remaining preparations will have been completed, including the formation of administrative bodies and registration in the corporate registry.

Commenting on the problem of power supply to Serbian villages in Kosovo-Metohija, Naumov explained that only UNMIK and the Kosovo power utility company hold the competency to solve that issue.

The Minister stressed that when the Electric Power Industry of Serbia (EPS) managed power plants and transfer systems in Kosovo-Metohija, there was no discrimination and everyone received electric energy regularly and continuously. Naumov stressed that the Ministry of Energy, the Serbian government, the Coordinating Centre for Kosovo-Metohija and EPS are ready to provide regular power supply immediately upon being allowed to do so.

According to Naumov, already on December 28 last year, the Ministry gave a proposal for a solution to the problem of power supply, and the government adopted a Conclusion at its session today which confirms once more the readiness of EPS to supply parts of the system in the province with electrical energy. That means that EPS would guarantee to the Kosovo system the supply of electrical energy needed for Serbian villages in the province.

The Minister recalled that the international community has invested €500 million into the electric power system of Kosovo in the past four years and has assessed that the current situation is now half as good as it was in 1999.

Serbian Minister of Justice Zoran Stojkovic said that the Bill on amendments to the Law on offences stipulates the reconciliation of regulations in all categories of offences and a tenfold increase in fines.

According to the Minister, these amendments are very important because collection of fines will increase budgetary revenues. In addition, a correctional approach to offenders will be applied as well.

The Decree amending the Decree on the control and payment of revenues for the Republic of Serbia for goods sold to Kosovo-Metohija stipulates that control of operations is to be carried out through a competent body equipped for payment of public revenues. Also, as trade is carried out in the territory of one single state, the formation of customs will be avoided and a psychologically difficult barrier for Serbian citizens in the province will be removed, the Minister of Justice pointed out.

Speaking about cooperation with The Hague Tribunal, Minister Stojkovic said that the Serbian government expects positive outcomes and added that Prime Minister Vojislav Kostunica will inform the public on all details concerning cooperation with The Hague after the completion of talks with EU delegations.

Serbian Minister of Agriculture, Forestry and Water Management Ivana Dulic-Markovic said that the Bill on seeds defines seed categories and ways of labelling packages in order to better secure the position of domestic seeds on the international market. It also defines supervisory institutions for recognition of types and the process of production of seeds, as well as conditions for production of seeds for foreign clients. Only accredited laboratories will be allowed to carry out the inspection of seeds.

According to the Minister, the government adopted a Decree on the use of incentives for promotion of villages in 2005. The decree envisions state refunds to agricultural producers under the age of 40 who make capital investments in their farms. The refunds could total between 30 and 50 percent of the money invested. The government also passed a Decree on the use of funds for the renovation and mechanisation of agricultural equipment, such as irrigation systems, and equipment for fruit, vegetable and cattle production, Dulic-Markovic said while highlighting that all these incentives refer only to registered farms.

She pointed out that a Decree regulating agricultural loans was also adopted. All those who were approved loans through banks in 2004 and did not receive funds will be paid in 2005 through budgetary revenues.