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The Government of the Republic of Serbia

In the service of citizens

Corridors of Serbia represent large amount of capital

Belgrade, 26 February 2005

Serbian Minister of Capital Investment Velimir Ilic gave an interview for the weekend edition of the “Danas” daily about interim measures at JAT Airways, the building of a cargo terminal at the Belgrade Airport, and the proposal for giving concessions for construction, use and maintenance of the Horgos-Pozega highway. The official Serbian Government website presents a portion of this interview.

Velimir Ilic

The introduction of interim measures at JAT Airways:

The introduction of interim measures to JAT Airways was necessary. There was conflict between the management and the worker unions, as well as between the unions themselves. A salary agreement for all could not be signed, as every union had its own proposal and common ground could not be found. The government set up a restructuring program of JAT Airways and defined what must be done each month. The new acting general director was given a programme that needs to be realised and we are monitoring its progress on a weekly basis.

Can Serbia lose its only national air carrier?

This cannot happen as we are in favour of revitalizing the company. It should have an optimal number of employees and we wish to have everyone provided for. Certain groups will be separated and work independently or will receive severance packages if they wish so, amounting to 250 euros per year of employment. After these measures we expect that the national air carrier will be stable.

The social programme for workers who voluntarily leave JAT Airways?

We will fulfil every promise made on behalf of the government. Our aim is to have a thriving company, with satisfied and well-paid workers, but this must be based on solid foundations. We do not want a national air carrier that could go under at any moment. We desire a stable company, because JAT Airways is one of the strongest Serbian brands. JAT Airways had an annual turnover of 200 million dollars and we want it to be healthy.

The construction of the cargo terminal at Belgrade Airport?

Two serious candidates have applied for this job and a committee has been appointed, which has verified the detailed tender documentation. They conducted an analysis and chose the contractor that offered the better terms. This is why neither I as minister, nor the government, can legally influence the decision, nor propose a contractor. The committee has done its part. We also have a committee for protecting contractor rights, which can file a complaint. If the committee were to note any irregularities it could annul the tender.

The proposal for granting concessions for construction, use and maintenance of the highway Horgos-Pozega?

The question of the Horgos-Pozega highway is unresolved, and it is necessary for Serbia, as the Ibar Highway presents a death trap. This section was only technically maintained, it has not been invested in. It is true that Serbia has built several roads in Vojvodina because of Corridor 10 and is now largely investing in this area. We now have a quota of 100 million euros and 90 percent is being invested in Vojvodina, in the bridge near Beska and the completion of the section from Beska to Novi Sad. The Serbian Government and the Serbian Road Directorate have taken this obligation upon themselves. Our aim is to bring middle Europe to the Adriatic and create a new corridor which would be a branch of Corridor 10, which needs to be given European approval and inclusion in important European corridors. Croatia is already building its corridor and if it completes it before us, we will be side-stepped. We need to complete Corridor 10 quickly because Romania and Bulgaria are also constructing their own routes, in order to transfer road traffic towards the Middle East over there. Corridors are currently Serbia’s biggest capital. If we allow our neighbours to get ahead of us, we will become the blind alley of Europe, which won’t invest in our road network. Our goals have to be set higher, to have the whole of middle Europe circulate through Serbia.

Privatisation of Mobtel and a third mobile operator?

The government has formed a commission to deal with the privatisation of Mobtel, which has completed its share of the work. A meeting of the most competent people in the government will be held soon, in order to resolve the issue of Mobtel with the BK Company. We have given proposals for a tender, for a financial advisor, in order to begin the privatisation process according to the law. We will have the help of the Ministry of Economy, which deals with privatisation issues. It is very unpopular for a minister to work on this. At this point Serbia will not have a third mobile operator, as one operator is being currently privatised. After that we will consider a third operator.