Ministerie van Buitenlandse Zaken, Ambassade Belgrado February 2012 Volume 1, Issue 1 EL&I Newsletter and Montenegro

Source: NBTC - Luider Imago Fotobureau

Welcome

Dear Reader! - inform Dutch businesses of Your comments and contri- opportunities in Serbia butions would be of invalua- Inside this issue: ble help in this endeavor. It will be practical, an im- Please mail your feedback to Welcome to the first EL&I portant part of the Embas- newsletter of the Nether- us! Welcome 1 sy’s outreach, including the lands Embassy in ! Embassy’s webpage, my This newsletter is a co- Embassy twitter-account, Nenad Mitosevic’s Embassy Business News 1-3 production of the Agricultural and Economic Sections of LinkedIn group, Nevena Ni- Laurent Stokvis the Embassy. Its title, “EL&I kolic’s Embassy Facebook, newsletter” is a direct refer- business drinks, one-on-one Ambassador to the Republic Energy in Montenegro 3 ence to the Ministry of Eco- meetings and incidental of Serbia and the Republic of nomic Affairs, Agriculture events. It should also be a Montenegro and Innovation of the Neth- meeting place for the Neth- Municipalities in Serbia 4 erlands. erlands business community, buying heifers to exchange information, The newsletter will: views and tips in the precompetitive phase. Events in February 3 - promote the Netherlands as a country of enterprise EU integration issues, eco- with a strong international nomic diplomacy, trade and Holidays info 4 competitive position and an investment related questions eye for sustainability. are core business of the Em- bassy. I would like this - promote cooperation newsletter to become a val- Where to stay and what 5 among Dutch businesses in ued window for presenting to see next month Serbia and beyond as well as our work in this respect. between these businesses and the embassy

In this edition:

 Royal FrieslandCampina takes over two dairies in Serbia Business News  Serbia considers oil and gas shale exploita- tion Royal FrieslandCampina Salford is majority owner of activities in Hungary, Roma- to buy Imlek and Suboti- shares in both Imlek and nia and Greece, this acquisi-  Municipalities to help ca dairies Subotica Dairy with 79% and tion boosts overall competi- farmers in Serbia 82% respectively. The re- tiveness of Royal Fries- Investment fund Salford maining shares are traded landCampina in South East Capital Partners agreed on on Belgrade Stock Exchange. Europe.  Green building expo in sale of Imlek and Subotica Through acquisition of these Belgrade dairies to Royal Fries- two dairies Royal Fries- landCampina. Companies landCampina will also take have signed memorandum of  February 15th and 16th over strong market positions understanding regarding the public holidays in Serbia in the markets neighboring acquisition of the dairies. Serbia. With already existing Page 2 EL&I Newsletter Volume 1, Issue 1

Business news (continued)

Seeking a strategic part- Railway modernization in sumption of plastic bags in ner April Serbia is 250 per person.

This month, the Serbian State railway company DELTA to reconstruct ho- Government is expected to Zeleznice Srbije and Czech tel Continental Belgrade take a decision on calling a consortium Enixus are ex- tender for advisor for select- pected to sign the first Delta Holding will close hotel ing a strategic partner for agreement in April on mod- Continental in Belgrade for the exploitation of oil shale ernization works on the Nis- reconstruction which will last in area of Aleksinac. Exploi- Pirot railroad, part of Corri- 12 months and will cost EUR tation of oil shale, from dor 10. The works on 60- 30 million. Delta also has a which 500-600.000 tons of kilometer railroad will cost project for construction of a oil could be produced a year, EUR 53 million. The same new shopping mall in Bel- could start in six to seven companies will carry out the grade, in area of Autoko- years. The state will certain- electrification of Nis- manda that will span on ly have share in a future Dimitrovgrad railroad which 200.000 square meters and consortium, which will also is the only section of Corri- will cost EUR 200 million. Source: Agency NL include a local company from dor 10 that needs electrifica- Aleksinac. Potential of Ale- tion. The whole project Construction of new wind ksinac region estimated at amounts EUR 120 million. park two billion tons of oil shale. EUR 75 million for over- Elektroprivreda Srbije an- haul of Clinical Center in nounced the construction of Belgrade a new wind park in the area EUR 400 million for high- of Kostolac with the power of way construction The overhaul of Clinical Cen- 30MW. The estimated cost of ter in Belgrade, which will the construction is between Public company Koridori cost EUR 75 million, is ex- EUR 35 and 40 million. Tech- Srbije announced that in pected to start in the second nical and investment docu- 2012 priority will be given to half of 2012. By that time all mentation is to be completed Corridor 10 towards the Bul- related documentation by the end of September garian border and the Corri- should be approved and all 2012. dor 11 highway from Bel- contractors selected. The grade to Montenegro. EUR Serbian Raspberry is a reconstruction will take three Serbian raspberry pro- 50 million for upgrade of years and will be carried out ducers set up nationwide irrigation in Serbia in new alliance of producers in stages. Reconstruction of alliance 2012 Clinical center in Belgrade is from southwestern Raspberry producers from Minister of agriculture stated part of the project of Euro- southwestern Serbia formed that EUR 50 million from the pean Investment bank (EIB). Serbia with 7000 alliance called Serbian Rasp- state budget will be allocated The project also includes the berry which numbers 7000 members for an upgrade of the irriga- reconstruction of the clinical members. More associations tion which is the start of centers in Novi Sad, Nis, from other parts of Serbia major works in the irrigation . For this other are expected to join in the system. He also announced clinical centers Serbia will coming period. This alliance new set of legal regulations start inviting bids in the first gathers 80% of producers for the support of agricultur- Quarter of 2012. This EIB- cultivating raspberries on al production. funded project amounts to EUR 200 million. 5,500 hectares of land and produce 65,000 tons per Invitation for bids for two year.Serbian Raspberry is sections of Belgrade- Serbia to use biodegrada- ble bags only now the representative body Montenegro highway for raspberry producers in According to the Minister of It is expected that in the the country. Infrastructure and Energy coming few months’ only Serbia will invite bids in the biodegradable bags will be New regional recycling coming months for two sec- used in Serbia. Faculty of center in Batocina tions of future “Corridor 11” Technology in Novi Sad is In March, the private compa- highway from Belgrade to authorized to issue certifi- ny “Brzan Plast” will open in Montenegro’s coast. The two cates that bags are degrada- Batocina first center for re- lots of the highway Obreno- ble within a period between cycling of tetra-pak. This vac-Ub and Lajkovac-Ljig one and four years. Certifi- will be the first center of this are ready for realization. cation costs are EUR 489 for kind and will recycle tetra- Minister added that Turkey local and EUR 950 for foreign pak from other countries of and Azerbaijan were offered bag producers. Annual con- the region. Only in Serbia to participate in this project. around 16.000 tons of this EL&I Newsletter Volume 1, Issue 1 Page 3

Business news (continued)

Mercator to invest EUR 12 minimum of EUR 25 million million in overhaul of hy- of revenues in the last three permarket in Belgrade years. Slovenia’s biggest retailer Formation of merchant Mercator will pour EUR 12 fleet of Montenegro million in 2012 into renova- tion of Mercator hypermar- The first freight transoceanic ket Center in Belgrade. Hy- ship built in China has been permarket will be closed delivered to the representa- from May to September due tives of the new company to the works on 50.000 Navigation of Montenegro. square meters. According to This is the start of the for- the reports, Mercator has mation of the merchant fleet invested into Serbia around of Montenegro. This ship is EUR 500 million since 2002 one of two, both with capaci- when it started operating on ty of 35 thousand tons. The the local market. building of both ships is fi- nanced from Chinese side Truck factory Priboj for and with the loan of Exim sale Bank. Total value of the loan is 47,4 million USD . Loan The Agency for privatization maturity is 15 years with 5 opened a tender for 86.49% years grace period and fixed Source: Po rt of Rotte rdam of Truck Factory Priboj. interest rate of 3%. Deadline for application is March 16. And obligatory deposit is EUR 500.000. Po- tential bidders must have been in production and dis- tribution of trucks and buses in the last three years. Bid- ders should also have had

Energy in Montenegro

Tenders in the first half of In order to obtain important the year The total value of this pro- role of Montenegro in the ject is around EUR 150 mil- According to Prime Minister field of energy, this project lion. The installed capacity Luksic, the Government of of interconnecting underwa- should be 118 megawatts. Montenegro already has pro- ter cables between Montene- ject for exploration and pro- gro and Italy will be a priori- duction of oil and gas. The ty in Government’s activities. next step should be a tender Several public tenders in for concessions for explora- At the same time prime Min- first half of 2012 tion of crude oil and produc- ister said that the realization of contracts for concessions tion of carbon dioxide in Montenegro aims to Montenegrin submarine ar- for construction of small ea. The tender is announced hydroelectric power plants is attract investments in for early spring 2012. also one of the main items Sources close to the Govern- on the Government’s agen- the energy sector ment say that there is great da. Total investment interest for this project and amounts EUR 140 million. that around twenty compa- Activities in planning the nies from all over the world construction of wind power submitted their letters an- plants are to be completed nouncing participation at the during 2012 for two loca- tender. tions in Mozura and Krnovo. Page 4 EL&I Newsletter Volume 1, Issue 1

Municipalities in Serbia buying heifers

In order to boost the animal per Municipality. The inten- expand and improve the husbandry in Serbia, Minis- tion of the Ministry is to sup- cattle breeding in this re- try of Agriculture and Trade port the import of several gion. Municipality of Paracin expects the financial support supports local authorities in thousand heifers. So far the from the Ministry of Agricul- buying heifers and distrib- heifers were given through ture. The price of one head uting them to the farmers. lottery system to registered is EUR 2000 and Paracin Heifers (Simmental breed farmers in Municipality of Municipality needs EUR mainly) are purchased by , Krusevac and Svi- 600.000 to carry out this project. local authorities and given to lajnac. the farmers that are in dairy or meat production business already. The Ministry of Agri- Municipality Paracin to culture is covering 80% of buy 300 heifers the price of the heifer and Mayer of Paracin announced Source: Ene rgizing the f uture local authorities contribute that the Municipality is ready with 20%. Between 200- to purchase 300 Simmental heifers and distribute them 300 heifers are purchased to the farmers in order to

Events in February

Serbia Green Building Serbia. City of Belgrade sup- Expo International exhi- port SGBExpo. bition and conference will Serbia’s first constitution take place in Belgrade 23-25 Belgrade fair activities in February 2012 at BEL Expo February in 1835 was modeled on Center Novi Beograd (Central Hall). Experts from Foodrex - food and bever- the Dutch Constitution all over the world will discuss age fair 09-12.02.2012. latest questions concerning BeoWine, Wine fair – 23- projecting and constructing 26.02.2012. green buildings, cooperation between companies and Tourism fair (ITTFA) – 23- market issues. This is the 26.02.2012. first time that a manifesta- tion like this takes place in

Holidays info

February 15th and 16th stitution was Constitution of National holidays in Ser- the Netherlands. This Holi- bia day is celebrated two days so that companies and Gov- February 15 is day of Consti- ernment institutions will be tution. On that day in 1835 closed. Note that Friday may Serbia for the first time in its be considered a bridge day. history, as a free country, got a Constitution, after the centuries of the Turkish domination. Known as Sretenjski Ustav, did not last very long and had only few articles. Model for this Con- EL&I Newsletter Volume 1, Issue 1 Page 5

Where to stay in Belgrade

Square Nine, a luxury hotel in central Belgrade has re- ceived the best Hotel Archi- tecture award as part of the annual International Hotel Awards. The awards are sponsored by Bloomberg TV and exist since 1994. Wall- paper Magazine listed Square Nine as the one of the World’s Best Business Hotels in 2011. Forbes Mag- azine also named this hotel one of the best new hotels opened in 2011.

Culture recommendation in February

This month we recommend 17 February you concerts of the Belgrade Conductor: Emiliano Patarra Philharmonic Orchestra at Soloist: Peter Soave, ban- the Kolarac Concert Hall: doneon This month’s cultural Programme: Gershwin, Piaz- zolla, Villa Lobos, De Falla recommendation are 10 February concerts of the Belgrade Conductor: Uroš Lajovic 24 February Conductor: Muhai Tang Soloist: Ognjen Popović, Philharmonic Orchestra clarinet Soloist: Aleksandar Madžar, Programme: Mozart, Eybler, piano Rott Programme: Strauss, Mo- zart, Stravinsky

Contacts

Netherlands Embassy Belgrade

Simina 29, 11000 Belgrade, Serbia www.nlembassy.org [email protected]

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