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The Government of the Republic of Serbia

In the service of citizens

Al Dahra Agriculture to invest in river transport in Serbia

Belgrade, 18 April 2013

Minister of Finance and Economy Mladjan Dinkic signed two memoranda on cooperation with the management of company Al Dahra Agriculture from the United Arab Emirates (UAE) today.

Author: Tanjug

Dinkic signed the Memorandum on recapitalisation of the Yugoslav River Shipping (JRB) company, which is worth between €20 million-€40 million, with General Manager of Al Dahra Hamad Saeed Sultan Al Shamsi.

The second memorandum, which refers to the sale of 43 acres of land in Pancevo for the construction of a river port in the city at a cost of €10,000 per acre, was signed by Dinkic, Al Shamsi and Deputy Mayor of Pancevo Sasa Pavlov.

Dinkic announced that the signing of concrete contracts for both projects is expected before the summer holiday, and that an agreement with Abu Dhabi Fund for Development for the construction of the irrigation system in Serbia will be signed in May.

Based on the first signed memorandum, Al Dahra Agriculture should become a minority owner of JRB with 30% to 49% of shares, while the money that this company pays for the minority stake would be used for restoration of the river fleet and the purchase of new ships, the Minister explained.

He added that an analysis will be made in eight weeks and that is when the exact level of investment needed for JRB and the purchase of new ships will be known.

Dinkic explained that the second memorandum envisages the sale of 43 acres of land for the construction of a river port in Pancevo, in which at least €5 million would be invested and which will be among the biggest in Europe.

According to him, an analysis will be made in a few weeks on the basis of which it will be determined the exact amount of the investment, after which the contract will be signed.

Investments in JRB and construction of Pancevo port are additional to the agreement on joint investment in Serbian agriculture worth €400 million that was signed at the end of March in Abu Dhabi, the Minister underlined.

He added that Al Dahra Agriculture should take over by the end of the summer the agricultural complexes in Serbia for which contracts were signed in Abu Dhabi, that is, as soon as it makes the payment.

He announced that Al Dahra wants to start by the end of August the construction of the first animal feed plant on the location of the factory 7.jul in Surcin.

Paul highlighted the importance of investments of Al Dahra for development of Pancevo, adding that it is a big step forward for this industrial centre, which has a large number of unemployed.

The construction of the port in Pancevo is a precondition for the exit of Pancevo on the Danube Corridor, which is a development opportunity for this city, he explained, adding that the land on which Al Dahra will build the port of Pancevo is now 100% owned by the city, and that it is a on “Greenfield" area that has no infrastructure.

Paul pointed to the importance of the recapitalisation that Al Dahra will make in two agricultural complexes, Starcevo and Omoljica in the municipality of Pancevo, whose 70% of the territory is covered by agricultural land.