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The Government of the Republic of Serbia

In the service of citizens

Declaring South Stream a national project is in Serbia’s interest

Belgrade, 10 September 2012

Minister of Natural Resources, Mining and Spatial Planning Milan Bacevic said in an interview for today’s issue of Danas daily that it is in Serbia’s interest to declare the construction of the South Stream gas pipeline a national project and thus facilitate the work of investors and eliminate the problem of expropriation.

Author: rts.rs

The Serbian government’s official website gives excerpts of the interview.

The South Stream pipeline construction project:

At one of the government sessions in September the South Stream gas pipeline construction project will be declared a national project to facilitate the work of investors. The state has interests in declaring this a national project because this will help eliminate the problem of land expropriation. Local self-governments would take it upon them to resolve the issue of expropriation in agreement with the government.

When will the construction of the South Stream section through Serbia begin?

The Agency for Spatial Planning has already completed a large number of spatial plans and only a few more remain to cover the route of the pipeline. Russia has announced that the project will begin on their territory in mid-December. Bulgaria has completed a large portion of preparatory works and it now remains for us to do the paperwork. There is no doubt that Serbia will greatly benefit from this project because our companies will be among those engaged on it, while people in local self-governments will also have an interest of their own.

When will the South Stream pipeline be fully completed?

Had everything began on time, the South Stream pipeline would have been launched by the end of 2015. As things stand now, we may have a delay of several months, but the Russians have the capacity to pull out the entire route of the pipeline.

Which companies are interested in the privatisation of oil shale in Serbia?

Twenty or so companies have applied to the tender to see the documentation and some of them asked to take over the documentation too. The biggest interest was voiced by Gazprom Neft, together with the Oil Industry of Serbia (NIS) and a Chinese and an Estonian company, all of which took the documentation. These are companies that have the necessary technology but we will not place favours with any of them. Those who come up with the best offers will be given the job of strategic importance for our energy sector.

Natural resources in Kosovo-Metohija:

It is a fact that Serbia lays claim to all natural resources in Kosovo-Metohija. The fact that the province is currently under protectorate does not give anyone the right to give up on this treasure. Serbia has its Constitution which binds the government to prevent attempts to seize the resources in the province. I do not know if we will make it, but we must nevertheless keep trying and doing our best to protect both ore deposits and water reserves in the province. This issue will have to be discussed with representatives of the self-proclaimed Kosovo state.

Construction of Danube–Morava–Vardar navigational canal: Along with the South Stream, this is the biggest project Serbia can launch on its path to recovery and big investments. This project would be the best way to link all of the EU’s economic interests because this is the shortest route for the transport of goods, people and the placement of capital in southern Europe and off towards Asia. We can also speak of the considerable energy potential, bearing in mind that several hydroelectric power plants can be built on the Morava River. On the other hand, if we had a well-regulated river flow, we would not have been this stricken by droughts that have caused over RSD 2 billion in damages. Transversal canals can be built to create an irrigation system that would cover 80,000 hectares during droughts and at the same time these canals could be used to prevent floods. In the talks we are yet to have about this project, we will discuss this with Germany, as well as Russia and China.

What is the value of this project?

According to previous estimates, the construction of the Danube–Morava–Vardar canal would require $15–20 billion. Still, we must draft a completely new business plan and conduct new research. This project may be realised through a public partnership or a concession.