The Investors Guide Belgrade 2009/2010 by CorD Magazine

SPECIAL EDITION

THE INVESTORS GUIDE

BELGRADE 2009/2010

2009

2010

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2 / The Investors Guide - Belgrade 2009/2010

Belgrade 2009/2010 - The Investors Guide / 3

Belgrade 2009 /2010

The investors guide

EDITOR IN CHIEF Tatjana Ostojić t.ostojic@cma.rs EXECUTIVE EDITOR Mark R. Pullen ART DIRECTOR Tamara Ivljanin t.ivljanin@cma.rs EDITORIAL CONTRIBUTORS Mark R. Pullen, Ana Stojanović, Željko Popivoda, Jelena Mickić PHOTO Slobodan Jotić, Časlav Vukojičić, Marko Rupena TRANSLATORS Snežana Bjelotomić PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Tanja Milićević, t.milicevic@aim.rs; Ana Zagajac, a.zagajac@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica The Investors Guide Belgrade 2009/2010 published by: alliance international media Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@ allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2009 This issue is audited by

CONTENTS

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ALEKSANDAR BIJELIĆ, Belgrade City Manager Welcoming new investors DRAGAN ĐILAS, Mayor of Belgrade - ELIMINATING CORRUPTION & VIOLENCE IVANA VESELINOVIĆ, President of Luka Beograd CITY ON THE WATER MIROSLAV ČUČKOVIĆ, City Council Member responsible for investments - A CITY OPEN TO NEW FOREIGN INVESTMENTS BOBAN KOVAČEVIĆ, General Director of Belgrade Parking Services - 12 MORE UNDERGROUND GARAGES NEEDED . DOING BUSINESS - WHY INVEST IN BELGRADE?

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DOING BUSINESS COMPANY REGISTRATION . DOING BUSINESS BUSINESS OVERHEADS

. DOING BUSINESS - INVESTMENT INFRASTRUCTURE . DOING BUSINESS INVESTMENT INCENTIVES . DOING BUSINESS FOREIGN BUSINESS REGISTRATION . BARAJEVO MUNICIPALITY - Branka Savić, President of the Municipality of Barajevo ENVIRONMENTALLY-FRIENDLY AREA . GROCKA MUNICIPALITY - Radovan Todorović, Chairman of the Municipality of Grocka - TALE OF TWO HALVES . LAZAREVAC MUNICIPALITY - Branko Borić, President of the Municipality of Lazarevac - FROM COAL TO CLEAN AIR

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ABC Serbia

4 / The Investors Guide - Belgrade 2009/2010

MLADENOVAC MUNICIPALITY - Branislav Jovanović, President of the Municipality of Mladenovac OPEN FOR COLLABORATION . ECONOMICS - PRUDENCE PROPOSED . DAVID BANJAI, BALL Packaging Europe SUCCESS STORY . NOVI BEOGRAD - Nenad Milenković, President of the Municipality of Novi Beograd and President of the Standing Conference of Towns and Municipalities of Serbia (SKGO) OUTSTANDING BUSINESS RESULTS . CENTRE FOR DEVELOPMENT AND LOCAL ECONOMY – Novi Beograd - EXCELLENT INVESTMENT LOCATION . OBRENOVAC MUNICIPALITY Željko Jovetić, President of the Municipality of Obrenovac AGRICULTURE & TOURISM . PALILULA MUNICIPALITY - Danilo Bašić, President of Palilula Municipality - BIG SCALE AGRICULTURE & INDUSTRY . RAKOVICA MUNICIPALITY - Bojan Milić, President of the Municipality of Rakovica - BELGRADE’S MOST INDUSTRIALISED AREA . SAVSKI VENAC MUNICIPALITY - Tomislav Đorđević, President of the Municipality of Savski Venac SAVA AMPHITHEATRE: IDEAL FOR INVESTORS . GORDANA DOSTANIĆ, Director of the Belgrade Stock Exchange - SERBIA: MARGINAL MARKET . FOREIGN INVESTORS ON THE BSE - RESUSCITATING THE MARKET

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. VESNA PERIĆ, director of SIEPA - WELCOME TO BELGRADE! . SOPOT MUNICIPALITY - Živorad Milosavljević, President of the Municipality of Sopot - GOOD NETWORK OF ROADS . STARI GRAD MUNICIPALITY - Mirjana Božidarević, President of the Municipality of Stari Grad - HEART OF THE CITY . SURČIN MUNICIPALITY - Vojislav Janošević, President of the Municipality of Surčin -BELGRADE’S YOUNGEST MUNICIPALITY . VOŽDOVAC MUNICIPALITY - Branko Arsenijević, President of Interim authority Municipality of Voždovac BELGRADE’S SOUTH GATE . VRAČAR MUNICIPALITY - Branimir Kuzmanović, President of Vračar Municipality - MOST APPEALING FOR RESIDENTIAL DEVELOPMENTS ZEMUN MUNICIPALITYBranislav Prostran, President of the Municipality of Zemun - EXCELLENT LOCATIONS FOR INVESTMENT . ZVEZDARA MUNICIPALITY Milan Popović, President of the Municipality of Zvezdara ATTRACTIVE MOTORWAY-SIDE LOCATION . ČUKARICA MUNICIPALITY - Milan Tlačinac, President of the Municipality of Čukarica - AT THE CROSSROADS . TOURISM - IDEAL CITY BREAK DESTINATION . BELGRADE ANNUAL CULTURAL CALENDAR . DIRECTORY OF CITY CONTACTS

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We will do our utmost to ensure Belgrade is positioned on the global business map in the best way possible. elgrade has no time to waste; its development should not be restricted any longer, since we need to make up for the years that we have lost. Hence, the main tasks of the current city government are to enable investors to obtain required permits in the shortest possible time, awhile shortening construction deadlines and cutting back on costs. Despite the ongoing economic crisis, we want to see every single plan for Belgrade implemented: building the bridge across Ada Ciganlija, reconstructing roads and tram lines, acquiring new city transportation, building nurseries and schools, providing a regular energy supply and everything else that is crucial to the normal functioning of a metropo-

“Despite the ongoing economic crisis, we want to see every single plan for Belgrade implemented” lis. That is not all, though. A preliminary contract on construction of the Zemun – Borča Bridge has been signed, while we are also considering the construction of a metro and there are many other things to be done. Furthermore, we are considering the provision of social funding in order to provide assistance wherever and whenever it is needed. In the first decade of the 21st century, our city’s economic structure is quite different and foreign investors have been quick to notice just how much the investment climate has changed for the better. The service sector blossomed in

FOREWORD

Welcoming new investors

the previous period – namely financial services, banking, software, telecommunications, trade, catering and tourism – and many renowned global companies have now been successfully operating on our market for years: Microsoft, Coca-Cola, Ball Packaging Europe, Metro Cash & Carry, numerous foreign banks and quite a few other household names. Belgrade is situated along the most important rail, road and waterway corridors in Europe. It is a natural link between East and West, but its potential is yet to be utilised to the fullest. One of Belgrade’s advantages lies in its unused construction potential along the river banks, which represent a fantastic development opportunity, and we should not forget the Belgrade workforce that is well educated, learns fast and speaks foreign languages. The percentage of the population that is fluent in English is the highest in Central and Eastern Europe, while computer literacy is also relatively high. By continuing to invest in new infrastructure and the revitalisation of existing road and rail links, as well as raising the level of utility standards, we will create the necessary prerequisites for the potential investors who are set to grow in number as the global crisis subsidies. We will do our utmost to ensure Belgrade is positioned on the global business map in the best way possible, as well as making sure the city maintains its image as a great organiser of major international cultural and sporting events and a good host to the many tourists and businessmen that come here.

Aleksandar Bijelić, Belgrade City Manager

Belgrade 2009/2010 - The Investors Guide / 5

POLITICS & BUSINESS

DRAGAN ĐILAS, MAYOR OF BELGRADE

ELIMINATING CORRU “B By Ana STOJANOVIĆ

“By October 2011 we will have a bridge across Ada Ciganlija; in 2013 the Borča – Zemun Bridge will be completed and we are preparing to sign a contract on the start of construction works on the bridge near Obrenovac. By building a bypass and city railway, together with the aforementioned bridges, we are going to have a tight commuter system that will resolve many traffic congestion problems in Belgrade.” 6 / The Investors Guide - Belgrade 2009/2010

elgrade and other cities in Serbia have been waiting for a very long time to get the utility police. In the spring of next year we’ll finally have that service, which will help us to bring order to metropolitan utility services and increase the security of all our citizens. We have already launched various campaigns in Belgrade aimed at prohibiting the sale of alcohol to minors and banning gambling for youngsters under 18 years of age. The utility police will help us to effectively fight illegal construction, excessive noise, pollution and everybody who thinks that they can harass other citizens without being punished. This year we will set aside 200 million dinars from the city budget to help the Belgrade Police Administration. The next thing we are going to do is to provide funds for the establishment of the utility police,” said Belgrade Mayor Dragan Đilas on 22nd October 2009, presenting the concept and benefits of introducing communal police in 23 cities in Serbia. Mayor Đilas thinks that the police will be able to financially support themselves by fining unruly citizens, but that is not a priority at the moment. The plan is for Belgrade to have about 350 communal police officers, whose work will be financed from the city budget. “Our idea is not for the utility police to write tickets every step of the way, but to help bring order to our cities and for individuals to finally realise that they cannot do anything that crosses their mind, irrespective of municipal order,” Mayor Đilas explains. Certain street names were changed almost a decade ago, but the idea wasn’t to erase the whole street – rather to give back names that these streets had had before World War Two – said Mayor Đilas in his guest appearance on TV B92 in mid-October. “So it happened that certain Russian gener-

POLITICS & BUSINESS

UPTION & VIOLENCE als lost their streets, so to speak, while some historical persons, like Tsar Nikolai, were given back theirs. We are going to correct these injustices in Belgrade. The streets will bear the names of those people who fought to liberate Belgrade and played an important role in fighting fascism. The things that happened after Belgrade was liberated, including the executions of certain people in 1944 and 1945, are pretty well-known and the people who did those things will never have streets named after them. The fact remains that Belgrade’s liberation was met here with an exhilaration of a triumph over fascism and the Nazis. A commission, which we specially set up to decide about street names, is made of people who do not care much about politics. My opinion is that it is quite logical for a Belgrade boulevard to be named after the Red Army, since it was this army that took part in liberating the city,” Mayor Đilas told B92’s Jugoslav Cosic. He also announces that Brice Taton, the young Frenchmen that was brutally murdered on the streets of Belgrade, will have a street named after him as a memorial and a great cautionary tale. Speaking of honorary citizens, Mayor Đilas says that the former Japanese Ambassador to Serbia, H.E. Tadashi Nagai, was prevented from being bestowed with this title because MPs from the Serbian Radical Party were against it, thus the majority needed for the city assembly to adopt such a decision was not achieved. “I was wholeheartedly in favour of that initiative because since 5th October 2000 Japan has donated over €30 million to Belgrade. I promised the former ambassador that once

Belgrade pays on time; we have no debts or overdrafts we acquire a majority of MPs that respect what Japan has done for Belgrade so far, he will get the title of honorary citizen for sure. Until that happens, we are going to erect a fountain in honour of the people of Japan for everything that they have done for us in the last eight years. There is no country that has done so much for Belgrade’s transport, hospitals, apartments for injured war veterans and many other things,” Đilas says. Speaking about fighting street and football hooligan violence, the mayor says that the state needs to be more adamant in tackling this serious problem.

BELGRADE AND CHICAGO “Through the Belgrade-Chicago twinning programme, we are going to take huge steps in developing the city, since there is a lot we can learn from Chicago. I expect a regular direct flight Belgrade – Chicago to be established next year, which will be very important for Serbs living there and anybody from Chicago wanting to come to Serbia in order to invest in our economy. I am thankful to Mayor Daley for all the help he’s has been giving us,” said Mayor Đilas during his official visit to Chicago this October.

“The state needs to have a clear determination to deal with people who call themselves football fans or patriots and are doing such things. The people who are harassing others have to end up in prison. Many criminals, drug dealers and blackmailers are hiding behind these so-called football fan clubs or patriotic organisations. Every person that holds a political function in Serbia needs to speak out, regardless of the impact that will have on their political ratings,” insists Mayor Đilas, adding that the police need to do their job properly, not overstep their boundaries but be resolute in dealing with these “tough guys”. “The utility police will not be allowed to deal with security issues, since this is something that regular police need to do, but bringing order to the city’s utility sector will improve Belgrade’s image,” the mayor adds. Commenting on the fight against corruption, Mayor Đilas pointed out that a lot more can be purchased in today’s Belgrade than before for the same amount of money, thanks to the city Public Acquisitions Agency. “The money that we have managed to save in this way is really substantial and with that money we can do things that other local selfgovernments cannot. We want individuals and companies that are working in the city’s interests to have the best partner possible in Belgrade. There are no tenders that are annulled and with much less money we are doing as much, if not more, than before. Aside from that, we want those in positions of power to treat Belgrade as they would treat their own home. I was the one who insisted on many people in the city government being replaced, not because they were embezzling money, but because they were not behaving in an economically prudent manner – buying things at much higher prices,” Mayor Đilas says. He outlines that there is a plan to cutback on the number of civil servants in the Belgrade government and te municipalities, while salaries have already been reduced and the use of government cars has been severely restricted etc. All of this was Belgrade 2009/2010 - The Investors Guide / 7

POLITICS & BUSINESS

Božidar Đelić, Deputy Serbian PM, Eric Saintrond, the FISU Secretary General, and Dragan Đilas, Mayor of Belgrade, at the opening of the World Student Games ‘Universiade’ in Belgrade done not because it has been ordered from a higher instance, but because it was sorely needed, Đilas adds. Announcing October’s official visit of the President of the Russian Federation, Dmitry Medvedev, Belgrade’s mayor said that the city, as always, would mark the 65th anniversary of Belgrade’s liberation in an appropriate manner. “Every year the city government and President Tadić lay commemorative wreaths on the graves of Serbian and Russian soldiers who fought for the liberation of Belgrade. It is really important for us to have the U.S. Vice-President and Russian President come here, since that just tells us that our country does have an important stand in the world,” Mayor Đilas explains. Speaking in his guest appearance in the ‘Viewer’s Interview’ on TV Studio B earlier this year, Đilas said that Belgrade needs to be an open city, where hooligans will not be tolerated. “Although we all know that life has become increasingly difficult because of the crisis, people need to feel safe. The state needs to be determined and, according to information at my disposal, the relevant authorities have realised that things have gone too far and that hooligans need to be stopped in their tracks. There is no excuse for a handful of people causing so much trouble and strife for the rest of citizens who want to live a normal 8 / The Investors Guide - Belgrade 2009/2010

life. This is not a matter that we should compromise on. These are very small groups of people that are just waiting for a reason, be it ‘The Pride Parade’ or football games, to cause disorder and we should have zero tolerance for that. If we stop now, things will escalate even more next time. It is about time for these people to understand that they are

Belgrade and other cities in Serbia have been waiting for a very long time to get the utility police not stronger than the state,” Đilas said. Speaking about the economic crisis, Mayor Đilas said that Belgrade was the first city to start saving, adding that restructuring large systems is a must. “We need to appoint managers or strategic partners without political parties meddling too much; if a company generates losses, its executives cannot give themselves high salaries, as they have in the past,” Đilas insists. “Belgrade pays on time; we have no debts or overdrafts. We have lowered the price of many services. We confer with each other and shall continue to do so. We are not go-

ing to stop building nurseries and schools. The crisis will pass and we are fully aware of what is realistic and what is not.” Speaking about planned reconstruction works on the strategic Gazela Bridge, the Belgrade Mayor says that this project needs to be carefully thought out, since the bridge is one of the most important transport routes in the city. He has suggested that work on the top layer of the bridge should start before the bridge over Ada Ciganlija. “By October 2011 we will have a bridge across Ada Ciganlija; in 2013 the Borča – Zemun Bridge will be completed and we are preparing to sign a contract on the start of construction works on the bridge near Obrenovac. By building a bypass and city railway, together with the aforementioned bridges, we are going to have a tight commuter system that will resolve many traffic congestion problems in Belgrade,” says Mayor Đilas. Speaking about the future of the Belgrade Fair, Mayor Đilas noted that the City of Belgrade was the Fair’s founder and that the initiative for the fair to become a public enterprise should not come as a surprise: “The Fair is one of those companies that are crucial to the development of Belgrade. I will not consent to this company being sold at a bargain price and, I reiterate, the price offered for the Fair was insulting,” the mayor concluded.

Belgrade 2009/2010 - The Investors Guide / 9

CORPORATE IVANA VESELINOVIĆ, PRESIDENT OF LUKA BEOGRAD

CITY ON THE W “We attracted a great deal of attention at the fairs we have participated in so far, including the one in Cannes, which is the biggest European fair of its kind. Living beside the water is the next big thing in the world.”

How do you deal with the financial crisis that has gripped the entire world? The crisis in the real estate sector will last a bit longer than it will in, let’s say, industry and other branches. Studies conducted by our London consultants, as well Cowi and King Sturge, show that the market will pick up in 2011, with full recovery expected in 2012. The first thing that will recover is the purchasing power to buy residential real estate, then retail parks, followed by shopping centres and, last but not least, office space. It is difficult to make predictions, but in our plans we have defined 2011 as a year when we will start offering this project to investors.

We do hope that the Law on Spatial Planning and Construction will facilitate investments iebeskind’s project, entitled ‘City on the Water’, is by far the most attractive and ambitious aspect of Belgrade’s future. We are talking to the president of the Luka Beograd, Ivana Veselinović, about progress made on the project and the affects of the global economic crisis on development.

The plan to gradually build a brand new “City on the Water” over the next 18 years in the current location of the Luka Beograd. Could tell us more about this project and what the new city will look like? Major construction and architectural projects represent the investment future of both Belgrade and Serbia. Liebeskind’s 10 / The Investors Guide - Belgrade 2009/2010

project ‘City on the Water’ is the finest and most ambitious dimension of Belgrade’s future. For the first time since the construction of New Belgrade, Belgrade needs to design and construct such a large metropolitan area; a brand new part of the city. The plan is to provide housing for 25,000 people and jobs for 100,000. Since this is a huge project, it has to be implemented in phases. It is divided in four phases, with each phase lasting between four and five years. There won’t be any separate zones: residential quarters will be intertwined with commercial and office space; there will be schools, nurseries, health clinics and sporting facilities. Your project is truly a real estate giant.

Do you think that we, in Serbia, will start to feel the first signs of economic recovery earlier than other countries? Unfortunately, the global economic crisis has spilled over into the Serbian economy. It started as a crisis in the country’s financial sector, i.e. as a solvency crisis, only to later evolve into an economic crisis, with the last stage being the social crisis. The state plays a crucial role here and the future of almost all Serbian companies depends, and will continue to depend, on what our government does when it comes to stimulating and providing incentives for the economy. Several government interventions have yielded results so far, but that is not enough. We still have the state on one side and the economic sector on the other, while everybody should deal with their own problems. On a diplomatic note, there is a great chance of establishing co-operation with Russia and China, as well as with Turkey, as of late. Unfortunately, the Serbian government and local companies did not join forces to develop these state agreements. Now specific

WATER

projects should follow and build on. Construction is the most stimulating platform for economic development. The multiplier of the economic influence that construction exerts on the rest of the economy is three; hence it is only logical for the government to pay special attention to this sector. We are still waiting for the relevant ministry to invite us to take part in compiling a development strategy for residential construction and other construction branches. Considering that your project costs quite a lot, how much has it been affected by the global economic crisis and how much by the situation in our country? The economic crisis has affected all companies, including those in real estate and construction. As such, it is natural that the biggest companies have suffered the most. The number of interested investors has reduced; less money is invested in long-term investment growth and more in speculative markets. On large and highly regulated markets, there is quite a lot of mortgaged real estate that will yield quick profit once the

THE PORT WILL STAY

he Port will not be relocated any time soon. It will stay where it is, where it will render port services to the City of Belgrade. We are especially proud of the port on the River Sava, which functions as a docking facility for tourist ships. Some 60% of all tourists that visit Belgrade come via this port. The land that the Port occupies in no way interferes with the ‘City on the Water’ project. When it comes to technological process and environmental standards, it will be like a quiet neighbour to the future tenants and visitors of this part of town. This is nothing new and it works well in other big cities, such as Barcelona, Lisbon, Hamburg, Stockholm, Glasgow, Thessalonica, Rotterdam and Amsterdam; it will also work in Belgrade.

“City on the Water” crisis subsides. The investment future of the ‘City on the Water’ project is closely related to the investment attractiveness of Serbia. Firstly, Serbia needs to impose itself as an ultimate investment destination, which, in turn, will mean that individual projects will be treated with the importance they deserve. So, the solution is primarily of a systematic nature. We attracted a great deal of attention at the fairs we have participated in so far, including the one in Cannes, which is the big-

The crisis in the real estate sector will last a bit longer than in industry and other branches gest European fair of its kind. Living beside the water is the next big thing in the world. Since the beginning of the crisis, investors have been more than keen to take part in our ‘City on the Water’ project. However, the situation has changed in the meantime and certain decisions have been postponed. Since tough times boost creativity, so we are inspired to look for new ways to finance the project. Among other things, Belgrade citizens will be given an opportunity to invest large or small amounts. You will hear more about that soon. Is the Luka Beograd’s land still disputed by the city authorities? The dispute between the Port and city authorities pertains to undeveloped land downstream from the Pančevo Bridge and not the land being developed for the ‘City on the Water’ project. Legally speaking, the whole dispute is pretty meaningless since for over 29

years the city authorities didn’t find any legal grounds to register this land in relevant land books and then, all of a sudden, the whole issue has been brought up. We won this dispute at the County Court on two occasions and are waiting to see what the court will say about our new appeal. I really don’t find it prudent to comment on this matter anymore, since court proceedings are still pending. The new Law on Spatial Planning and Construction has been adopted. Would you say that this law favours investments? We have been waiting for this law for a very long time. Serbia has been constantly criticised by investors that construction land, i.e. the right of use over land, was the last residual of model where property use to belong to the state. Finally, after almost 60 years, construction land is being privatised, which, in itself, is a great reform endeavour. Actual nature of this law will be defined by 25 bylaws and one act, which have not been adopted and content is still unknown. We do hope that the law will facilitate investments, it is in everybody’s interest. If that is not the case, Belgrade will not be an interesting location for international investors. Current construction land fees are already higher than in any other city in the region. I do hope that the so-called populist approach will be avoided, which will turn this law into nothing more than a revised privatisation. Such retroactivity would certainly have a negative impact on the already low rating that Serbia has in international statistical bulletins. I think the main project actors - Minister Oliver Dulić and Mayor Dragan Đilas - are fully aware of the risks involved and will be able to find solutions that will put Belgrade ahead of other cities and countries that surround us. Belgrade 2009/2010 - The Investors Guide / 11

INTERVIEW

MIROSLAV ČUČKOVIĆ, CITY COUNCIL MEMBER RESPONSIBLE FOR INVESTMENTS

A CITY OPEN TO NEW FOREIGN INVESTMENTS “As a local self government, we have prepared good quality locations suitable for both greenfield and brownfield investments. I would like to reiterate that incentives for developing infrastructure, which is something we are fully engaged in, are among the main incentives we offer.” By Ana STOJANOVIĆ Photo Marko RUPENA he situation in Belgrade this time last year, in terms of foreign investors’ interest in opting for the Serbian capital, was in no way indicative of the drop in investments that can be seen in the city today. Despite the economic crisis, Miroslav Čučković, City Council Member, says that the investment situation in Belgrade is quite good. Indeed, in the summer of 2008, German company

12 / The Investors Guide - Belgrade 2009/2010

Continental bought Kolubara Univerzal – investing a total of 11 million euros, hiring 250 workers and beginning implementation of an investment programme worth €4 million. At the same time, several German and Austrian car parts and textile manufacturers visited Belgrade. Meanwhile, we saw some Italian companies coming to Belgrade – mostly those dealing with renewable energy (wind turbines and small hydro-electric power plants) and gas thermo-electric power plants, as well as constructors of large shopping centres. Today the situation is somewhat different, which

is one of the topics we are discussing with Miroslav Čučković. Quite a few investors postponed or gave up on investing all together. How big was the reduction in investment activities in Belgrade this year compared to last? Compared to last year, the number of investors that invested in Belgrade dropped by 30%. Bearing in mind that, for example, the reports compiled by the German Chamber of Commerce show that investments made by German companies in Europe de-

INTERVIEW clined by around 37%, we are not far off the European average. Despite this being a cause for concern, we are getting ready for the recovery that will happen in the following few years. One of the main tasks of the City Council is to provide foreign investors with adequate locations in accordance with their main business activities, i.e. the industrial branch they belong to. In the case of electricity and machinery producers, we can offer locations in industrial zones near the thermo-electric power plants Obrenovac A and B. If we are talking about fruit and vegetable producers, there are locations in the industrial zones in Mladenovac and Grocka, while if an investor is looking for a cargo centre, we have available locations in Surčin, near the airport. There are also several locations near the bypass, as well as in northern Belgrade and along the Pančevački and Zrenjaninski roads. What projects do investors consider worth investing in within Belgrade? They are especially interested in infrastructural projects, like reconstructing city railway lines, which is one of the biggest projects of its kind in Europe. There is also construction of the bridge that will link Zemun to Borča, which is set to become the biggest construction site on the River Danube in years to come. Councilman Čučković also explains that the city government was preparing for the negative affects of the economic crisis last year. As a local self government, the city did its utmost to attract as many foreign investors as possible, issuing quite a number of building permits. It takes an investor two months at the most to obtain a

location permit, i.e. operating and building permits. Mr. Čučković says that state incentives make the job of local governments much easier and these incentives are much higher than in other regional countries. The state also provides subsidies for greenfield investments. Depending on the kind of production facility is being established, the state’s subsidies vary from €2,000 to €10,000 for each new workplace created – provided that a company hires at least 50 new workers. Last year the city authorities assembled private land owners in groups, in order to be prepared when a large investor inquires about a land plot that has several owners. Do city authorities provide special incentives for foreign investors? Strictly implementing comprehensive regulatory reform (CRR), as instructed by the Ministry of Economy, is the first step towards ensuring an efficient state administration able to deal with investors. As a local self government, we have prepared good quality locations suitable for both greenfield and brownfield investments. I would like to

thing that cities in the region are not so keen on doing. We should also mention the excellent job that both the country’s president and government are doing by concluding several trade agreements with world powers, which, again, is something that not many regional countries have done. I would also like to mention our very favourable tax policy. Following the economic crisis, many global companies decided to relocate east in order to reduce their overheads. Cheap labour is certainly something they find appealing. Aside from that, the city authorities have invested quite a lot of money in infrastructure to ensure that investors will not face obstacles in that respect when they decide to invest in Belgrade.

Strictly implementing comprehensive regulatory reform (CRR) is the first step towards ensuring an efficient state administration able to deal with investors

BELGRADE BYPASS

“T

he state authorities are responsible for building the city’s bypass. We, as city authorities, are not. However, we do hope that the bypass will be completed in stages in accordance with the plans devised by the Ministry of Infrastructure and the National Council of Infrastructure, i.e. by the end of 2012.”

reiterate that incentives for developing infrastructure, which is something we are fully engaged in, are among the main incentives we offer. The city government is of the opinion that one of the main comparative advantages that Belgrade and Serbia have over other cities and states is our high quality and relatively cheap workforce. In order to perpetuate this advantage, the city decided to invest in education, whether directly or indirectly, through revitalising schools, faculties and nurseries, while providing scholarships for talented young people. Could you tell us what Belgrade’s comparative advantages over other regional cities are? Above all, it is a good quality workforce structure, then the determination to fight corruption in every shape and form – some-

Do you expect large companies to invest here next year too? Absolutely. We, the city authorities, are at their disposal and want to be of assistance to any foreign company wanting to hire Belgrade’s workforce. It is our imperative to reduce pressure on the public sector in terms of employment and for Belgrade’s citizens to start finding employment in the biggest global companies, like IKEA. The Swedish furniture maker has been negotiating with the Serbian government and are close to reaching an agreement about opening a production facility in Belgrade. Belgrade 2009/2010 - The Investors Guide / 13

INTERVIEW

BOBAN KOVAČEVIĆ, GENERAL DIRECTOR OF BELGRADE PARKING SERVICES

12 MORE UNDERGROUND “I expect us to see the first locations on offer by next year. We are currently in the process of adopting spatial planning documentation.”

xxx

By Tatjana OSTOJIĆ Photo Časlav VUKOJIČIĆ ccording to the General Director of Parking Service (Parking servis), Boban Kovačević, one of the company’s main tasks is to fully utilise existing resources. “By introducing parking zones for Vračar and lower Dorćol in Belgrade, we have opened up a way to using certain resources that so far haven’t been utilised so much or used for specific purposes. Downtown Belgrade has many

14 / The Investors Guide - Belgrade 2009/2010

Even with the latest price increase, we still charge the cheapest parking fees in the region courtyards that haven’t been used much for parking so far, for various reasons. In a way, it’s our task to use the existing parking places even more, together with the citizens of Belgrade and through joint investments, regardless of these places not actually being classified as public surfaces. Once we expand the capacities, I expect the parking situation in Belgrade to become much better. We are currently at a stage when we a try-

ing to make an optimal use out of parking places that are already here, i.e. the streets, public garages and courtyards“, our interlocutor says. According to Kovačević, today in Belgrade, more cars can park in the same place than seven years ago. Earlier, one parking place in downtown was used by one or two cars the most. Today, in the red parking zone, up to seven cars can use just one parking place, while, in the green

INTERVIEW

GARAGES NEEDED zone, up to three or four cars can park. „This means that we have increased the parking almost sevenfold“, Kovačević outlines.

ing Service that can be done much better and differently, but, at this moment, I can say that the company functions well.

Parking Service is one of the few successful public utility companies in Belgrade. Parking Service is a successful, well organized company. Often, Parking Service is viewed as a very wealthy company, without any problems, that can function pretty well regardless of the way in which it is organized. Of course, this is not true. We have been trying in the past eight or nine years to show that things can be done differently. Based on the offer / demand analysis, we came up with an optimal way to use parking lots in Belgrade. True, this is just one segment of the company’s operations and it is also the most visible one. In addition to that, Parking Service

Is the privatisation of Parking Service imminent? Are you going to look for a strategic partner soon? I think that Parking Service is a company that is on the backburner when it comes to privatization. The City Assembly founded the company in order to deal with matters of parking on their behalf. Our property is not as interesting as that of other public enterprises. The most valuable assets that we manage are the ones that can never be privatized, like pavements. We do have a certain number of trucks and some real estate, as well as quite a few employees who work in city garages. I am not sure that Parking Service will look for a strategic partner

Building underground garages is one of the safest jobs, especially in the time of crisis really contributes a lot so that Belgrade can function well. There is a department in the company that makes sure that over 300 heavy trucks don’t pass through the city centre. The customs terminal, which was built by the Belgrade city authorities and Parking Service in the suburbs, is the only customs terminal that was built for that exact purpose. Over 300 trucks are custom-cleared every day in the terminal. Certainly, there are certain things in Park-

or will be privatized soon. The city needs the company in the current shape and form. This is what Belgrade mayor, Dragan Đilas also advocates. He also wants the city authorities to start offering underground garages to third parties. These garages are an absolute must in Belgrade, since the city simply cannot build as many parking lots as it needs, and in the short period of time, in order to resolve the current problems with parking.

ECONOMIC CRISIS

conomic crisis affected us both directly and indirectly. Today, we are saving much more and every dinar we save we invest in infrastructure. We don’t have it easy, the city budget doesn’t have it easy, our suppliers and partners are in the same situation. Still, our prices are quite low, in contrast to the quality of our services. Even with the latest price increase, we still charge the cheapest parking fees in the region, including Montenegro and Bosnia. For example, parking in Zagreb is two euros, while in Belgrade it is less than half a euro. Parking Service doesn’t only collect parking fees, but also regulates the traffic in the city through the parking system. This tool, which is very important in managing traffic, is not used enough in Belgrade.

Garages in Belgrade How many garages Belgrade lacks at this moment? The plan is to build 12 underground garages on the locations that are considered the most critical. It is very difﬁcult to talk about how many parking spaces will these garages have at this moment. What we need to do is to offer parking locations underneath public surfaces to third parties, in order to deal with fewer property issues. On the other hand, we need to advocate city’s interests in this business, so that the city can get the needed parking places which, in time, will become its ownership. These 12 garages are currently ’talk of the town’ among every single company or person that have anything to do with public garages. The following organizations are involved in this project – the Institute of Urban Planning, the Urban Planning Secretariat, BelBelgrade 2009/2010 - The Investors Guide / 15

INTERVIEW grade Land Development Agency, Zelenilo and the Institute for Monument Protection. Out of 70 or so locations, these 12 emerged as the cleanest and potentially the simplest for construction. Also, we are currently dealing with the formalities of the project, i.e. what conditions will the city authorities offer regarding these locations. The city authorities are going to be partners in the project and will provide all required building permits. Getting the city authorities involved means that the contractor will get money from banks much easier, and thus start to build sooner. Once these garages are constructed, the pressure will be off streets. I expect that, come next year, we are going to have ﬁrst locations on offer. We are currently in the process of adopting spatial planning documentation. The network of public garages is now supposed to be discussed by the Planning Commission, which is just one step before forwarding the whole project to the City Assembly. I do hope that the Assembly will give a ’green light’ to the project, as an integral part of the city urban planning documentation, by the end of this year. Once this is done, we are going to be able to offer these locations publicly. Mayor Đilas is quite keen on going through with all of this, since he wants investment to be made in the city, regardless of the global ﬁnancial crisis. On the other hand, the fact remains that this is one of the safest jobs, especially in the time of crisis. Since this is a project that is of interest to all participants, we expect to generate quite a lot of interest for it. Do you know how big this investment is going to be? This differs from garage to garage and investments will depend on the project itself. At this moment, we cannot precisely say how much it will cost to build a garage, since there are a lot of preparatory works to be done that are not related to the construc-

to inform certain larger providers through a direct contact. However, I would not be surprised to see domestic companies participating in the ﬁrst round, and, come second around, for large providers to buy the business from them. Both ways are acceptable. The arrival of a large provider, like Vinci, would be an opportunity for us to review our services too. How much has the economic crisis afﬂicted the implementation of this project? I am sure it does quite a lot of damage. However, this is a project that is implemented crisis or no crisis. I can also say that this is one of the safest projects to realize.

The number of cars in Belgrade went up by a third in the last three years tion itself. These works also have bearing on expenses. Aside from the aforementioned locations, the city needs to bring order into public utility services, i.e., in our case, make sure that the parking is paid for. I am conﬁdent that the city will continue improving the parking regulation. In your opinion, who do you see as investors in these 12 underground garages? In my professional capacity, I would really like to see the biggest European providers getting on board. The city authorities will do their utmost to thoroughly inform the public about the construction of these garages. I believe that we are going

FUTURE PLANS

e are getting ready to deal with the competition, to be ready when they come. Our personnel is quite interesting to them since they are the only people in town who know ins and outs of parking in Belgrade. We are going to do our utmost to keep all our personnel in the company once the competition arrives. We are getting ready for the market and a tough market game. At this moment, we are concentrating on being a public enterprise, responsible for the existing resources.

16 / The Investors Guide - Belgrade 2009/2010

How many parking places does Belgrade need, aside from the existing ones? I cannot say for sure. We are in a situation where parking spaces in courtyards have already been rented out or garages have been turned into business premises. Without a doubt, Belgrade needs more parking spaces. I have to say that there is no city in the world that can provide all its downtown citizens or people who commute there with enough parking spaces at the same time. This just doesn’t exist. In some cities, which we consider role models, like London, there are rigorous measures to deter people from coming to city centre with their cars. At this moment, Belgrade needs 12 more garages. The number of cars in Belgrade went up by a third in the last three years. So, even when we ﬁnish these 12 garages, the city will need more parking spaces. You have promoted the idea of paying for parking via mobile phones abroad. When Parking Service introduced this way of supervising and paying for parking, it became a role model for many countries in the region. Over 10 towns in Serbia now charge for parking in this way. Even the Vienna authorities have inquired about the way this service functions. We are currently negotiating with several European towns about writing trafﬁc studies for them. When it comes to parking fairs, we are pretty well known.

Belgrade 2009/2010 - The Investors Guide / 17

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Airport City

WHY INVEST IN BELG Macro-economic stability, market size, low business costs, human resources, geographical position and investment infrastructure – these are just some of the important reasons to invest in Belgrade elgrade is slowly but surely evolving into one of the most attractive investment locations in this part of Europe. Since embarking on its democratic reform path, the Serbian capital has attracted over $3.5 billion of FDI, primarily in the service sector (banking, retail & wholesale and telecommunications). Investments were realised in other branches too, such as real estate and manufacture. Many multinational companies have branch offices in Belgrade, including Telenor, Mobilkom, Banca Intesa, METRO Cash & Carry, Microsoft, Ball Packaging Europe and many others.

BELGRADE: CITY OF THE FUTURE OF SOUTHEAST EUROPE The title “City of the Future of Southeast Europe” is the best confirmation of 18 / The Investors Guide - Belgrade 2009/2010

Belgrade’s economic potential. The city was given this award in 2006 by a prestigious FDI Magazine published by the Financial Times. Belgrade beat off the challenges of several other contenders for this prestigious title from Slovenia, Croatia, Bosnia & Herzegovina, Macedonia, Albania, Bulgaria, Romania, Greece, Turkey, Cyprus, and Malta. The award was given on the basis of the following indicators: ● Economic potential ● Business expenses ● Human resources ● Transport ● IT and Communication ● Quality of life ● Investment promotion strategies. Aside from confirming that Belgrade has carried out essential reforms to the business environment, the significance of this award

goes even further as a recommendation to foreign investors when it comes to choosing the best investment location. WHY INVEST IN BELGRADE? Macro-economic stability, market size, low business costs, human resources, geographical position and investment infrastructure – these are just some of the important reasons to invest in Belgrade, undoubtedly one of the most attractive business locations in this part of Europe. STABLE ECONOMIC SITUATION An increasingly favourable business climate in Serbia and Belgrade is based on a stable macro-economic framework with many positive indicators as follows: ● High economic growth of an average seven % per annum in the last three years;

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Serbian Parlament

RADE? â&#x2014;? Single-digit inflation rates, 6.6% in 2006; â&#x2014;? Balanced state budget; â&#x2014;? Record foreign currency reserves of over $14 billion; â&#x2014;? Low public debt, below a third of national GDP. GOOD MARKET POTENTIAL Belgrade offers great sales potential, both on the global and domestic markets, which is rooted in the following: â&#x2014;? Customs-free access to the EU, U.S., Russian and Southeast European markets, with over a billion consumers accessible for a number of industrial and agri-

cultural products; â&#x2014;? Dynamic growth of salaries and the purchasing power of the domestic population, with an average net salary of over â&#x201A;Ź350 a month. LOW BUSINESS COSTS Compared to other countries of the region, business costs in the Serbian capital and the country as a whole are favourable. This is due to: â&#x2014;? Low taxes, such as a 10% profit tax, 18% VAT and 12% income tax; â&#x2014;? Numerous investment incentives, such as state subsidies for direct investments amounting to between â&#x201A;Ź2,000 and â&#x201A;Ź10,000 per new employee, profit tax relief for a 10-year period on large investments, as well as tax exemption from paying income tax and social benefits for employing people under 30 and over 45 years of age;

DEVELOPED INVESTMENT INFRASTRUCTURE

s a result of many large investments being made in the past few years, Belgrade today has a modern transport and telecommunications infrastructure which includes the following: t 7FSZ FBTZ BDDFTT UP UIF & JOUFSOBUJPOBM NPUPSXBZ BOE /JLPMB 5FTMB *OUFSOBUJPOBM "JSQPSU t %FWFMPQFE *OUFSOFU DPOOFDUJPOT PG VQ UP .C T Great offer of first class business premise

â&#x2014;? Cheaper utility services, including electricity, gas and water. DILIGENT WORKERS According to most existing investors, the quality and price of labour are the key reasons for investing in Belgrade and Serbia. Human resources in the country are known for their: â&#x2014;? High work productivity, which is growing by an average of 11% annually (industrial sector); â&#x2014;? Excellent technical know-how, with a third of 14,000 students graduating from the natural science faculties; â&#x2014;? Very low labour costs, which are 50% lower than in the new EU members of Eastern Europe. FAVOURABLE GEOGRAPHICAL POSITION Serbia and Belgrade are at the very heart of Southeast Europe. Accordingly: â&#x2014;? Pan-European transport corridors 7 and 10 â&#x20AC;&#x201C; linking Western Europe to the Middle East â&#x20AC;&#x201C; run through Serbia; â&#x2014;? Serbia borders several EU members; â&#x2014;? Less time is required to transport goods to and from most important European markets.. Source: SIEPA Belgrade 2009/2010 - The Investors Guide / 19

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HR AS THE MAIN

COMPETITIVE ADVANTAGE

WORKFORCE ON OFFER The labour market in Belgrade and Serbia has been developing rapidly with the arrival of large international investors. Domestic and foreign companies are granted a number of incentives when hiring new workers. There are many employment agencies offering a wide range of services: from finding and training potential workers, to researching the salary range. Of the 330,000 people employed in Belgrade, a third of them hold a junior college or university degree. Moreover, around 200,000 citizens of Belgrade possess a university de-

Some 200,000 citizens of Belgrade possess a university degree, which is over 20% of the total workforce... Belgrade is an appealing destination for highly educated workers from other parts of the country. highly qualified and relatively inexpensive workforce is one of Belgradeâ&#x20AC;&#x2122;s main competitive advantages. Many local companies have traditionally co-operated with leading global enterprises through various contractual relations, which has made it possible for the local workforce to be exposed to global trends, adopt specific know-how and the highest business standards. The education system in Belgrade and elsewhere in Serbia is known for providing excellent technical education and, thanks to developed relations with Western countries, knowledge of English and other foreign languages is quite extensive. Finally, the price of the workforce in Belgrade is the same as in any other city in the neighbouring countries, but is significantly lower than in Central Europe.

The labour market in Belgrade and Serbia has been developing rapidly with the arrival of large international investors gree, which is over 20% of the total workforce. As the administrative and economic centre of Serbia, Belgrade is an appealing destination for highly educated workers from other parts of the country. EDUCATION SYSTEM A total of 14,370 students graduate each year in Serbia, with 1,006 of them gaining a Masters degree and no fewer than 383 obtaining a PhD. A third of these students possess technical knowledge. In 2005, a total of 10,226 students graduated from Belgrade universities, while most of the universities and colleges in the country are operating in line with the Bologna Convention. Managers are educated via graduate and post-graduate programmes that are implemented by domestic universities and the most distinguished European and global business schools, like HEC from France or Sheffield University and Edinburghâ&#x20AC;&#x2122;s Heriotâ&#x20AC;&#x201C;Watt from the UK. There are also a dozen international primary and secondary schools in Belgrade, with lessons taught in English, German and French. Source: SIEPA

20 / The Investors Guide - Belgrade 2009/2010

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COMPANY REGISTRATION he state-owned Business Registers Agency (APR) is in charge of company registration. The entire procedure takes 18 days to complete, which – according to the World Bank – is much shorter than in other regions of Europe and Central Asia (their average is 32 days).

COMPANY TYPES The company types in Serbia are almost identical to those of developed countries and are as follows: ● Shareholding company (a.d.), ● Limited liability company (d.o.o.), ● Limited partnership (k.d.), ● Partnership (o.d.). Aside from registering themselves as shareholding companies, banks and insurance companies have to be registered with the National Bank of Serbia (www.nbs.rs ). Leasing companies are usually registered as shareholding companies or limited liability companies and are also obliged to register themselves with the Business Registers Agency (www.apr.sr.gov.yu ). Source: SIEPA

MAIN FEATURES OF VARIOUS COMPANY TYPES IN SERBIA LIMITED LIABILITY COMPANY

SHAREHOLDING COMPANY

LIMITED PARTNERSHIP

PARTNERSHIP

Abbreviation

d.o.o.

a.d.

o.d.

k.d.

Minimum founding capital

500 euros

10,000 / 25,000 euros

Number of company members

Up to 50

Up to 100 for closed shareholding companies, unlimited for open shareholding companies

At least 2

Responsibility of each member

Limited by each member’s share

Unlimited and undivided

Unlimited and undivided for complimentary partnerships, limited by a member’s share in limited partnerships

Special features

Trading in securities allowed only for closed shareholding companies

Belgrade 2009/2010 - The Investors Guide / 21

DOING BUSINESS

BUSINESS OVERHEADS Overhead costs in Belgrade are quite low compared UP PUIFS MBSHF DJUJFT JO $FOUSBM BOE &BTUFSO &VSPQF 5BY SBUFT BSF BNPOH UIF MPXFTU JO UIJT QBSU PG &VSPQF while the average salary is quite close to those of OFJHICPVSJOH DPVOUSJFT BOE VUJMJUZ FYQFOTFT BSF MPXFS than elsewhere in the region TAX RATES The Serbian tax system is known for its very low tax rates. Profit tax is one of the lowest in Europe, while VAT, income tax and social contributions are below levels in Central and Eastern Europe. MAIN TAX RATES Overall rate â&#x20AC;&#x201C; 18% VAT Special rate â&#x20AC;&#x201C; 8% ProďŹ t tax 10% 20% (dividends, proďŹ t Withholding share, author fees, interest tax rates) Salaries â&#x20AC;&#x201C; 12% Income tax Others â&#x20AC;&#x201C; 20% 10/15% (if the annual income tax is below or Annual above 8 average annual income tax salaries in the country respectively) Progressive rates ranging Property tax from 0.4% to 3% Pension and disability insurance â&#x20AC;&#x201C; 11% Social Health insurance â&#x20AC;&#x201C; 6.15% contributions Unemployment insurance 0.75%

VALUE ADDED TAX Serbiaâ&#x20AC;&#x2122;s VAT rate is as follows: â&#x20AC;˘ 18% (overall rate), â&#x20AC;˘ 8% (special rate). Value added tax is paid upon delivery of goods or after a service is rendered, as well as on imported goods. The tax basis is comprised of a charge for delivered goods or rendered services, as well as excise, custom clearance fee, other import duties and other costs associated with the sale of goods and services.

22 / The Investors Guide - Belgrade 2009/2010

PROFIT TAX The corporate profit tax rate stands at 10%. The tax basis is comprised of taxable profit, as stated in the tax records. This profit is calculated on the basis of the profit stated in the end-of-the-year accounts, in accordance with the Law on Profit Tax. When it comes to dividends, profit share, author fees and interest rates, the profit tax is 20%.

INCOME TAX The income tax rate is 12% (salaries) and 20% (other income). â&#x20AC;&#x2122;Other incomeâ&#x20AC;&#x2122; entails income generated in agriculture, forestry, arts and crafts, author fees, industrial property, capital, real estate, as well as including capital revenues and other related income. Residents, i.e. individuals with residence in Serbia who live in Serbia for at least 183 days during the fiscal year, pay tax on income generated both in Serbia and abroad. Non-residents only pay taxes on income generated on Serbian territory. In the case of salary tax, every employee is considered a tax payer, but the employer is the one that calculates tax on their behalf and deducts the relevant tax amount from their salary. The tax basis, in the case of salary tax, is gross salary, i.e. a net salary plus social contributions.

ANNUAL INCOME TAX The annual income tax ranges between ten and 15 per cent, depending on the annual income. The lower tax rate is applied to those who earn up to eight average annual salaries in Serbia, while the higher rate is

applied in all other cases. This tax rate is applied if the annual income is above at least three average annual salaries in the country (for Serbian citizens) and at least five average annual salaries (for foreign citizens).

PROPERTY TAX The property tax rate is 0.4% for tax payers that have accounting books, while a progressive rate ranging between 0.4 and three per cent is applied in other cases, including the fixed tax amount. The property tax is paid in the case of the following real estate rights: ownership rights, usage rights, long-term lease of an individual housing or residential building, using city construction land over 10 hectares in size, as well as the ownership rights to securities issued under an individualâ&#x20AC;&#x2122;s name and a share in a limited liability company.

SOCIAL CONTRIBUTIONS Social contributions are as follows: â&#x20AC;˘ Pension and disability insurance: 11% â&#x20AC;˘ Health insurance: 6.15% â&#x20AC;˘ Unemployment insurance: 0.75% Both employers and employees are tax payers in this case, with the gross salary serving as a tax base. SOCIAL CONTRIBUTIONS Country Serbia

Contributions rate (%) Employer

Employee

Total

17.9

35.8

Poland

18.71

17.2320.12

35.9438.83

Bulgaria

12.43

23.9824.68

36.4137.11

Croatia

20.0

17.2

37.2

Slovenia

22.1

16.1

38.2

Hungary

13.5

33.5

The Czech Republic

12.5

35.0

47.5

Slovakia

13.4

34.4

47.8

Source: PricewaterhouseCoopers

DOING BUSINESS

INVESTMENT INFRASTRUCTURE

ith a developed network of roads, high speed telecommunication links, numerous first class business premises and building plots equipped with utility systems, #FMHSBEF PGGFST FYDFMMFOU DPNGPSUBCMF DPO ditions for successfully doing business.

AVERAGE SALARIES In 2006, the average salary in Belgrade was 27,476 dinars (โ ฌ327). According to the latest data from August this year, the average net salary has grown to 34,779 dinars (โ ฌ435), which is a result of a significant appreciation of domestic currency in relation to the euro. Meanwhile, tax paid by employers is significantly lower. The profit tax has been reduced from 14 to 12 per cent, with the tax base reduced by 5,050 dinars (โ ฌ65) on a monthly level. Following this, the total tax paid by employers was reduced from 73 to 63 per cent of a net salary. If we also consider tax incentives for employing people under 30 and over 45 or 50, the tax that an employer has to pay is even lower.

TRANSPORT INFRASTRUCTURE *OWFTUPST JO #FMHSBEF IBWF EJSFDU BD DFTT UP UIF & JOUFSOBUJPOBM NPUPSXBZ XIJDI CFMPOHT UP 1BO &VSPQFBO $PSSJEPS MJOLJOH $FOUSBM BOE 4PVUIFSO &VSPQF UP UIF .JEEMF &BTU *O UIF GPMMPXJOH GFX years, several large capital projects will be implemented to advance the transport infrastructure in the capital city. 5IFTF QSPKFDUT FOUBJM CVJMEJOH BU MFBTU UXP CSJEHFT BDSPTT UIF SJWFST 4BWB BOE %BOVCF as well as constructing a ring road that will ease traffic congestion in and around Belgrade. Goods can be transported via rivers too, since Belgrade lies on two navJHBCMF SJWFST o UIF 4BWB BOE UIF %BOVCF 5IFTF UXP SJWFST CFMPOH UP 1BO &VSPQFBO $PSSJEPS XIJDI MJOLT BMM %BOVCF DPVO USJFT UP UIF /PSUI BOE #MBDL TFBT WJB UIF 3IJOF .BJO %BOVCF DBOBM *nternational "JSQPSU /JLPMB 5FTMB JT LJMPNFUSFT GSPN downtown Belgrade and has an almost perfect geographical position, since it is located at the very intersection of air routes. Quite a few global airlines regularly fly from and to Belgrade, whether these are direct flights or layovers.

5&-&$0..6/*$"5*0/ */'3"4536$563& &WFO UIF NPTU EFNBOEJOH PG CVTJOFTT QFP QMF XJMM BHSFF UIBU #FMHSBEF PGGFST *OUFSOFU services tailored to their needs, with the following high speed connections: t *4%/ "%4- GSPN UP ,C T t $BCMF *OUFSOFU VQ UP .C T t 8JSFMFTT *OUFSOFU VQ UP .C T BUSINESS PREMISES #FMHSBEF DVSSFOUMZ IBT BSPVOE square metres of A and B class busiOFTT QSFNJTFT XJUI TRVBSF NF tres deemed top class. As a result of a recent real estate boom, the lease fees have been significantly reduced in the past year and currently stand at beUXFFO รป BOE รป QFS TRVBSF NFUSF PS GSPN รป UP รป QFS TRVBSF NFUSF GPS class B premises. Most of these facilities BSF MPDBUFE JO /FX #FMHSBEF XIJDI IBT emerged as the new central business district of the Serbian capital. CONSTRUCTION LAND 5IFSF JT B QPTTJCJMJUZ UP MFBTF TUBUF PXOFE MBOE GPS B ZFBS QFSJPE *O NPTU DBT es, the land is leased via public auctions, XJUI UIF SFRVJSFE GJYFE GFF BOE SFHVMBS NPOUIMZ QBZNFOUT 5IF #FMHSBEF -BOE %FWFMPQNFOU 1VCMJD "HFODZ XXX CFP land.com ) is in charge of leasing stateowned land. Source: SIEPA

UTILITY PRICES Prices of certain utility services, such as electricity, are the lowest in Southeast Europe. In terms of construction land and business premises, following the announced land reforms and construction of top of the range business premises, the associated costs will be reduced even further. Source: SIEPA Belgrade 2009/2010 - The Investors Guide / 23

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INVEST

the Serbian Investment and Export Promotion Agency (SIEPA). All required documents can be downloaded via the Agency’s website www.siepa.sr.gov.yu.

REGIONAL EMPLOYMENT PROGRAMMES

*OWFTUNFOU QSPKFDUT JO BMM CVTJOFTT BSFBT XJUI UIF FYDFQUJPO PG SFUBJM BOE XIPMFTBMF tourism, catering and agriculture) are eligible for non-refundable grants from the state budget ny company planning to invest in Belgrade can take advantage of a series of financial and tax incentives for its projects. Some of the most important incentives provided by the state include nonrefundable grants for new investments ranging from €2,000 to €10,000, as well as many tax incentives.

FINANCIAL INCENTIVES Financial incentives for greenfield and brownfield investments: Investment projects in all business areas (with the exception of retail and wholesale, tourism, catering and agriculture) are eligible for non-refundable grants from the state budget. The money should be spent on financing investment projects in the production sector and international services related to international 24 / The Investors Guide - Belgrade 2009/2010

trading or research & development. Investments in the production sector: • Total financial assistance: from €2,000 to €5,000 per new job; • Minimum investment required: from €1 million to €3 million; • Minimum number of new jobs: 50. Investments in the service sector: • Total financial assistance: from €2,000 to €10,000 per new job; •Minimum investment required: €500,000; • Minimum number of new jobs: 10. Investments in research & development: • Total financial assistance: from €5,000 to €10,000 per new job; • Minimum investment required: €250,000; • Minimum number of new jobs: 10. The grant application should be submitted to

The state provides financial assistance through regional employment programmes – on condition that an employer hires at least five new workers for an indefinite period of time. Grants go up to 100,000 dinars (€1,220 euros) per each new employed person. Preference is given to projects of strategic importance to regional development and those hiring workers that have been unemployed for a prolonged period of time. More information about this programme can be found at the Belgrade offices of the National Employment Service (NSZ). A list of NSZ branch offices can be found at www.rztr.co.yu.

“FROM REDUNDANCY TO EMPLOYMENT” PROJECT This project provides financial assistance for hiring workers that were left without jobs due to technological, economic or organisational changes to their respective companies, starting from 1st September 2006. The nonrefundable grants go up to 100,000 dinars (€1,220) and an employer that submits proof that he has hired these workers is eligible to receive the grant. More information about this programme can be found at the Belgrade offices of the National Employment Service (NSZ). A list of NSZ branch offices can be found at www.rztr.co.yu.

INTERNSHIP PROGRAMMES Internship programmes envisage state subsidies for the hiring interns for periods of six, nine or 12 months, depending on their education (high school, junior college, university). Applicable financial assistance is as follows:

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TMENT INCENTIVES a) 10,000 dinars (€120 euros) for interns with a high school diploma; b) 11,000 dinars (€135 euros) for interns with a junior college diploma; c) 13,000 dinars (€160 euros) for interns with a university degree.

More information about this programme can be found at the Belgrade offices of the National Employment Service (NSZ). A list of NSZ branch offices can be found at www.rztr.co.yu.

RETRAINING AND ADDITIONAL TRAINING Professional retraining and additional training is organised upon company requests, providing that there are no persons with such professions in the National Unemployment Service records or that those who are going to be retrained / additionally trained don’t have the required skills. The National Unemployment Service will co-finance such projects with up to 70,000 dinars (€860). More information about this programme can be found at the Belgrade offices of the National Employment Service (NSZ). A list of NSZ branch offices can be found at www.rztr.co.yu.

TAX INCENTIVES Profit tax / Tax exemption: Companies investing at least 600 million dinars (€7.5 million) of their assets and hiring at least 100 persons for an indefinite period of time are eligible for exemption from paying profit tax for a period of 10 years. In the case of concession investments, the company will be exempt from paying profit tax for a five-year period from the day of completion of the concession investment.

TAX LOANS Profit tax can be reduced by 20 per cent of the amount invested in basic assets during a period of one year, while in certain sec-

tors (agriculture, fishery, yarn and textile production, clothing and leather manufacture, basic metals, standard metal products, machines and appliances, office equipment and computers, electrical machines and appliances, radio and TV sets, communication equipment, medical, precision and optical

INCOME TAX

The basis for income tax is reduced by 5,000 dinars (€85) a month. Exemption from paying income tax for every newly hired worker is applied during the following periods: 1) Three years: a) for interns under 30

The state provides financial assistance through regional employment programmes – on condition that an employer hires at least five new workers for an indefinite period of time instruments, motor vehicles, trailers, semitrailers and other transport vehicles, recycling, cinematographic and video production) this reduction is 80 per cent. The profit tax is also reduced to the amount of 100 per cent of the gross salary of any newly employed worker during the two-year period since employment began, providing that the employer hasn’t reduced the number of his employees in that period.

LOSS TRANSFER Losses generated from business, financial and non-business transactions can be transferred to the profit stated in the annual balance sheet, for up to 10 years.

FAST AMORTISATION Fast amortisation at rates that can be 25 per cent higher than regular is applied to assets used in: 1) Preventing air, water and land pollution, noise reduction, energy efficiency, forestation, collection and recycling of waste, industrial raw-materials and energy fuels; 2) Science and research; 3) Educating and training workers. Fast amortisation is also applied to computers.

years of age and b) for workers living with disabilities; 2) Two years: a) for workers under 30 years of age and 2) workers over 45 years of age; 3) One year: for every worker, regardless of age or other criteria.

SOCIAL CONTRIBUTIONS Exemption from paying social contributions for every newly hired employee can be applied during the following period: 1) Three years: a) for interns under 30 years of age and b) for workers living with disabilities; 2) Two years: a) for persons under 30 years of age, b) a) for persons over 50 years of age and c) for workers over 45 years of age (80 per cent reduction).

CUSTOM FREE IMPORT OF EQUIPMENT If an investor wants to import equipment (with the exception of vehicles, vending machines and gambling machines) that will be used on the investment location, he is exempt from paying any customs or other import duties. Source: SIEPA Belgrade 2009/2010 - The Investors Guide / 25

DOING BUSINESS

FOREIGN BUSINESS REGISTRATION How can you register your business in Serbia? By Ana STOJANOVIC n terms of business registration, foreign nationals have an equal status to local citizens in the Republic of Serbia. They may establish any form of business in accordance with local laws: limited liability company, stock company, co-operative, branch office, representative office or other. Any foreign national wishing to set up a trade business as a private individual can easily do so with a passport, as proof of identity. Business registration in Serbia today can be completed within one working week, with minimum capital of €500 and US$60 for registration costs (for a limited liability company). As of May this year, systematic efficiency was further improved with the introduction of a one-stop-shop system, which entails electronic communication between the Serbian Business Registers Agency (SBRA) and three state agencies. Now the company founder simply files a single application for registration at SBRA’s desk and acquires a certificate of registration within five days, along with the company fiscal code (PIB) and registration with the pension, disability and health insurance funds. Thanks to these improvements, Serbia’s ranking in the last World Bank “Doing Business 2010” report jumped 35 places in the “business start-up” indicator, thus climbing from 108th to 73rd place globally. Considering the time and number of procedures required for starting a business, Serbia improved its overall ranking in 2009 by two places. Thus, a clear signal was sent to foreign investors that they are welcome and that Serbia is investing efforts to make this region a desirable place for doing business. According to SBRA data, 7,200 active companies have been founded by foreign nationals in Serbia. Among them, the most numerous are from neighbouring countries,

26 / The Investors Guide - Belgrade 2009/2010

primarily Slovenia, Croatia, Hungary and Bosnia & Herzegovina, but also Austria, Cyprus, Germany, Italy, the Netherlands, the U.S., et al. When choosing a legal form, foreign and domestic investors tend not to differ, most often opting to set up limited liability com-

According to SBRA data, 7,200 active companies have been founded by foreign nationals in Serbia panies and representative offices of foreign legal entities. When it comes to legal forms, SBRA draws particularly attention to the difference between branch offices and representative offices of foreign legal entities. Namely, a branch office is a separate, legally independent organisational unit of the founder, permanently conducting activities for which the founder is registered; its business capacity cannot exceed that of its founder. A representative office, meanwhile, is a separate, legally dependent organisational unit of the founder. It does not have the capacity of a legal entity and is founded for

the purpose of market research, marketing and other activities which do not require the stipulation of contracts on behalf of, and for the account of, the representative office. Therefore, a representative office practically conducts preparatory activities aimed at stipulating a contract, which will be signed personally by the founder of the representative office. The first step when registering is to check the availability of the desired business name on SBRA’s official website: www.apr.gov. rs. Information on supporting documents and fees is also available via the website, as are free copies of company registration forms, (in the official language and alphabet of the Republic of Serbia). Registration forms may also be obtained in SBRA’s head office and branches. A foreign legal entity seeking to register a limited liability company must file: a registration form, proof of founder’s identity, a copy of the entry from the Register in which the entity is registered, a bank receipt confirming payment of the deposit to a temporary account, a decision on the appointment of an authorised representative, (unless this is laid down in the company’s instrument of incorporation), the certified signature of the authorised representative and proof of payment of the registration fee.

Belgrade 2009/2010 - The Investors Guide / 27

BARAJEVO

INTERVIEW: BRANKA SAVIĆ, PRESIDENT OF THE MUNICIPALITY OF BARAJEVO

ENVIRONMENTALLY BRANKA SAVIĆ: “Our suggestion is environmentally-friendly industrial branches that don’t pollute the environment: agriculture, excursion tours and hunting tourism...” CONTACT: GORAN JELIĆ / Svetosavska 2, 11460 BARAJEVO; +381 (0) 11/8302-118, +381(0) 64/8756-022; +381 (0) 11/8302-444; under construction; goran.jelic@barajevo.org.rs; all

By Tatjana OSTOJIĆ he Municipality of Barajevo was established in 1956 following the amalgamation of Barajevo, Baćevac, Boždarevac, Guncate and Lisović. Other villages joined the municipality in 1957 and 1960. The municipality is located within the boundaries of greater Belgrade, i.e. in its southern part. We are talking to municipal president Branka Savić about the municipality’s investment potential.

What features of Barajevo Municipality would you like to mention as being important to investors? The municipality comprises 13 villages and 15 local communities. The municipality’s headquarters are located in Bagrdan, which lies 18 kilometres from Kosmaj and 14 kilometres from Duboko upon Sava. The Municipality of Barajevo is considered a transit route from the Posavina District to Kosmaj and Kolubara to the south. Barajevo covers 213 square kilometres and, in terms of land conﬁguration, the area is mostly hilly with valleys located near rivers – some of which are as wide as a kilometre. The land slopes slightly southwards, so all small rivers and creeks gravitate towards the River Beljanica. The highest point in the municipality is Parcanski Vis (408 metres asl) in the east, which dominates the entire area. According to the 2002 census, the Municipality of Barajevo has a population of 24,641. Due to the close 28 / The Investors Guide - Belgrade 2009/2010

proximity to urban Belgrade and the natural beauty of this area, several thousand weekend houses have been built here and, when inhabited, these houses push the municipality’s population above 30,000. The most important transport routes in the municipality are the Ibarska byway, the Lipovica – Kosmaj local road

The most important transport routes in the municipality are the Ibarska byway, the Lipovica – Kosmaj local road and the Belgrade – Bar railway and the Belgrade – Bar railway. Barajevo is 27 kilometres from urban Belgrade via the Ibarska road and 24 kilometres by train. The municipality has good transport links to Lazarevac, Sopot, Mlad-

enovac and Aranđelovac. All 13 villages in the municipality are connected via a network of asphalted roads.There are a total of 1,100 companies registered in the municipality, with most of them engaged in retail, construction, transportation and the processing industry.Close to 4,500 hectares of land is forested, with 3,000 hectares privately owned. Public enterprise Srbijašume manages the forests that are not privately owned. What is the structure of the workforce here? The Barajevo high school has 900 pupils in 30 classes. Once they graduate, they will become junior economists, agriculture technicians, agricultural machinery operators, car mechanics, shop assistants and hairdressers. Currently, 45% of the Barajevo population over 15 years of age has graduated from high school and 2.5% of them have a university diploma. According to data from 2005, the municipality has 2,403 unemployed residents – of which 1,293 are women and 1,110 are men.According to 2006 records, there were 1,590 unemployed persons (with

CULTURAL AND HISTORIC HERITAGE The cultural and historic heritage of the Municipality of Barajevo is quite impressive. What makes the municipality so special is the authenticity of its cultural and historic monuments. The log church in Vranić, Matić House, Vuksan Monument in Beljina, Jeftić House and Stevanović House in Šiljakovac are just a few of the area’s most important landmarks. Some of them are even protected by the Belgrade Institute for the Protection of Monuments of Culture.

BARAJEVO

-FRIENDLY AREA work experience) and 1,057 school-leavers classed as ﬁrst time jobseekers. The biggest group of unemployed citizens are older, equating to 24.9% of all unemployed. Some 24% of those unemployed are between the ages of 31 and 40, while 21.9% are between 41 and 50.

business here? We adhere to all of the deadlines stated in the Law on Spatial Planning and Construction. Could you give us the names of the

mostly an oak forest. As Belgrade and its suburban municipalities develop, so the role played by forests changes. People are becoming more aware of the fact that forests are not only raw-material or energy resources, but also play social and other

Does the municipality have an industrial zone? Yes. The Municipality of Barajevo has an industrial zone called Trebež. What can the municipality offer potential investors at this moment; do you provide special incentives to investors and what industrial branches do you recommend as being most suitable for investing? We have the lowest fees and duties of all Belgrade municipalities. Our suggestion is environmentally-friendly industrial branches that don’t pollute the environment: agriculture, excursion tours and hunting tourism. We are close to urban Belgrade (the big-

Barajevo has the lowest fees and duties of all Belgrade municipalities gest market in Serbia) and have complete infrastructure. Barajevo is also close to regional transport routes and railways. The municipality is also suitable for the construction of processing facilities; it has an improved structure and is suitable for cattle breeding, eco-agriculture and organic food production. The long-term EU strategy envisages investments in agriculture and food industry in the Balkan countries. The Republic of Serbia also stimulates development of agriculture and the food processing industry. How long does it take for an investor to acquire all necessary permits and documents in order to start up a

Dragan Đilas, Belgrade Mayor, and Aleksandar Antić, President of City Hall, visit Ravni gaj in Barajevo most signiﬁcant investors in the municipality so far? There are quite a few small and medium-sized enterprises. What sets your municipality apart from other Belgrade municipalities? The Municipality of Barajevo is rightly called an environmentally-friendly municipality. We have areas of outstanding natural beauty, such as the Lipovička Forest, which ‘protects’ the municipality from pollution coming from other municipalities. There are no large industrial systems that could pollute the environment here. The Lipovička Forest is located at an altitude of 160 to 290 metres asl and is

important environmental roles. The tourist aspect of such natural wealth, as forests are, should not be overlooked either. Considering that the municipality’s population is mostly engaged in agriculture, this branch takes an important place in the local economy. The most important features of agriculture here are an abundance of arable land, favourable agri-ecological conditions, tradition and experience in agricultural production, adaptability to land cultures, running farms as family businesses and favourable conditions for fruit and vegetable cultivation. If the potential offered by these branches is fully utilised, then overall economic development will be quite evident. Belgrade 2009/2010 - The Investors Guide / 29

GROCKA

TALE OF TWO HA RADOVAN TODOROVIĆ, CHAIRMAN OF THE MUNICIPALITY OF GROCKA: “Despite its unprecedented growth, the municipality is sharply divided into two opposing parts in terms of both demographics and economics.” CONTACT: RADOVAN TODOROVIĆ, CHAIRMAN OF THE MUNICIPALITY OF GROCKA / 39 Bulevar oslobođenja, Grocka; +381(0) 11/8501-312; www.grocka.rs; predsednik@grocka.rs; Serbian & English

rocka is a suburban settlement and one of the 17 municipalities constituting the City of Belgrade. The municipality lies to the east of Belgrade in the northern part of the Šumadija region. Its northern section is part of the Podunavlje macro-region in the Danube Valley, while the southern section is located around the River Ralja Valley, which is a tributary of the Velika Morava’s Jezava section. Other rivers in the municipality are Bolečica and Gročica. At an altitude of 71 metres asl, the town of Grocka is one of the lowest parts of Belgrade. While the western part of the municipality naturally gravitates towards Belgrade, the eastern part radiates, historically and geographically, towards the City of Smederevo. The Municipality of Grocka covers an area of 289km² and includes 15 settlements. All of them – with the exception of the urban municipal seat of Grocka – are statistically classified as rural: Begaljica , Boleč, Brestovik, Dražanj, Grocka, Kaluđerica, Kamendol, Leštane, Pudarci, Ritopek, Umčari, Vinča, Vrčin, Zaklopača and Živkovac. Grocka Municipality has an official population of 75,466 (2002 census) and an estimated population of 78,825 (as of 31st December 2005), equating to 273 residents per km². Thanks

30 / The Investors Guide - Belgrade 2009/2010

to inward migration and the highest natural increase of all of the city’s municipalities, Grocka has been one of the fast growing areas of Belgrade for decades, with average annual population growth of 1.2% since 2000. Population here has boomed in the last 30 years, more than doubling the number

Tourism represents a major opportunity for the municipal economy of inhabitants (1971-2005: 2.23 times; between 1971 and ‘81 the population grew by 4.5% annually). As in the other similar areas surrounding Belgrade, the rapid population growth has not been accompanied by an equal development of infrastructure (good roads, waterworks, sewage system, waste disposal, etc.). With Serb refugees from Bosnia, Croatia and Kosovo & Metohija, it is estimated that the population has al-

ready broken the 100,000 barrier. The ethnic structure (2002 census) shows Serbs at 94.7%, Montenegrins with 0.8%, Roma with 0.6% and ‘ethnic Macedonians’ at 0.5%. ECONOMY Despite its unprecedented growth, the municipality is sharply divided into two opposing parts in terms of both demographics and economics. Grocka’s western part merges with the complete urban area of Belgrade and has experienced a boost of population and an economic boom, with hundreds of small companies located there (Kaluđerica, Boleč, Leštane, Vinča, Ritopek). The eastern part, meanwhile, is an agricultural and fruit growing area and, apart from the Town of Grocka itself, is experiencing depopulation. Grocka’s microclimate is perfect for fruit cultivation and vineyards, with the area east of Boleč renowned as one of the best fruit growing areas in Serbia. Conditions are especially good

HISTORY

ne of the streets in the old town of Grocka became part of the wider Belgrade City area in 1955. In 1957, following the dissolving of the Mali Mokri Lug Municipality, the eastern section (villages of Kaluđerica, Leštane and Vinča) were attached to Grocka. In the early 1960s, the municipalities of Umčari and Vrčin were disbanded and incorporated into the Municipality of Grocka. Since the elections of 2000, Grocka has become the most politically turbulent of all of Belgrade’s municipalities.

GROCKA

LVES

for growing peaches, apricots, plums, cherries and grapes. Of the other agricultural products, wheat is the most important. The experimental farm Radmilovac is located near Vinča, as a section of the Agricultural Faculty of Belgrade University. At the moment,

the settlements of the western part of the municipality. Traffic is important here and some major transport routes pass through the municipal territory, including the Smederevo Road and the BelgradeNiš railway and highway. There are also several docks in settlements on the Danube (Vinča, Grocka) with the prospect of a marina to be built in Grocka in the next few years. Other important facilities in the municipality are a geomagnetic observatory in Brestovik, Nuclear Institute (with now defunct nuclear reactor) and Belgrade

by residents of urban Belgrade) are located in Grocka along the bank of the Danube. The Rajinovac Nunnery in Begaljica, planned future marina and Grocka Aqua Park, as well as the prehistoric archaeological site at Vinča, could all be used to boost the local tourism economy. As a result of the marked economic and demographic discrepancy between the western and eastern parts of the municipality, a movement is seeking to split the municipality into two or three. Primarily, this relates to dividing the municipality in two, with the

Center of Grocka

Radmilovac is being expanded into a huge experimental area for future agricultural production. As a result of this, the industrial processing of fruit is developed in Grocka, Vinča and Boleč, where large plantations and the refrigerators of agricultural company PKB Beograd are located. Several mills are also located in Grocka and Vinča. Moreover, the textile industry is also developed in the municipality (Grocka, Dunav factory, aka Partizanka), while hundreds of small family-owned factories and workshops are located in

The industrial processing of fruit is developed in Grocka, Vinča and Boleč City waste disposal site in Vinča. Tourism represents a major opportunity for the municipal economy, though is currently underexploited. Almost every village has its own summer festival - like the Golden Cauldron (Zlatni kotlić) in Grocka or Days of cherries (Dani trešnje) in Ritopek - and three weekend settlements (mostly owned

western half becoming a new municipality of Vinča and the eastern remaining the Municipality of Grocka. There is also a possibility of Vrčin splitting from Grocka to form a new municipality of Avalski Venac with other subAvala Mountain settlements currently in the Municipality of Voždovac (Beli Potok, Zuce, Pinosava). Belgrade 2009/2010 - The Investors Guide / 31

LAZAREVAC

FROM COAL TO CLE BRANKO BORIĆ, PRESIDENT OF THE MUNICIPALITY OF LAZAREVAC: The Kolubara mine basin is the biggest coal producer in the Electric Power Industry of Serbia (EPS) system. Almost 70 percent of all coal produced in Serbia takes place in the Kolubara basin. CONTACT: BRANKO BORIĆ, MUNICIPAL PRESIDENT / Karađorđeva 42, Lazarevac; +381 (0) 11/8123-191, 8121-503, 8126-500; www.lazarevac.rs; protokol@lazarevac.rs; Serbian & English

By Tatjana OSTOJIĆ he Municipality of Lazarevac is situated in a picturesque area of the Šumadija region known as Kolubara. Beside the River Kolubara, the municipality lies at an average altitude of 147 metres/asl. It is located 55 km southwest of Belgrade proper and covers an area of about 384 square kilometres. The northwest of Lazarevac municipality is covered in meadowland, while the southeast is mountainous. The highest point in the municipality is the Stubičke Vis, at an altitude of 393 metres/asl, while the lowest point is in the north-western area of the municipality, where the River Kolubara leaves the municipality (90 metres/asl). This area experienced sudden industrial development (mining and energy) during the second half of the 20th century, when large inward migration occurred and virtually all areas of town life were modernised.

POPULATION The Municipality of Lazarevac is made up of 33 towns, villages and smaller settlements. The Town of Lazarevac is the biggest settlement in the municipality and its administrative, cultural and economic centre. Due to its pronounced economic activity, most of the municipality’s population work in Lazarevac itself, as do residents of neighbouring municipalities,. The biggest villages

32 / The Investors Guide - Belgrade 2009/2010

in the municipality are Veliki Crljeni, Vreoci, Baroševac and Rudovci – all of which have developed economies. The municipality’s other villages are entirely rural in character. According to the 1991 census, the population of Lazarevac numbered 58,882. The average population density in the

The natural advantages of the Municipality of Lazarevac are considered as representing a solid foundation for tourism development municipality is about 153 inhabitants per square kilometre , which is 52 per square kilometre  more than the aver-

age population density in Serbia. Lazarevac has great potential for the development of tourism (in the northern part of the municipality) and the production of environmentally-friendly products (in the southern, ecologically clean part of the municipality). INDUSTRY The Kolubara mine basin is the biggest coal producer in the Electric Power Industry of Serbia (EPS) system. The Kolubara basin is 60 kilometres southwest of Belgrade, covers an area of 600 square metres and has signiﬁcant reserves of brown coal, standing at 2.2 billion tonnes. Almost 70% of all coal produced in Serbia takes place in the Kolubara basin. Most of the brown coal (90%) is used to generate electricity in thermo-electric power plants Nikola Tesla in Obrenovac, Kolubara in Veliki Crljeni and Morava in Svilajnac. The Kolubara mine basin produces close to 750,000 tonnes of raw coal and around

CULTURE

any historical artefacts - from prehistoric times to the modern era - can be found in the Municipality of Lazarevac. Cultural heritage is considered one of the main tourist attractions, with heritage capacities taking the form of “cultural trails”, such as the Sacral Path of Lazarevac that leads to all religious buildings located on the municipality’s territory (Brajkovac, Čibutkovica, Baroševac, Junkovac, Leskovac, Petka, Vreoci, Sopić, Lazarevac). Additionally, there are many cultural monuments, archaeological sites, examples of sacral architecture, public monuments and memorials, as well as popular architectural facilities. The municipality has another kind of cultural heritage in the form of material and spiritual nature, which represent a wonderful addition to the cultural richness of this area.

LAZAREVAC

AN AIR 700,000 tonnes of dry coal. The Kolubara basin has four mine seams: Polje B, Polje D, Tamnava Zapad and Tamnava Istok - all of which are equipped with the latest equipment for continuous coal production, with an annual capacity of 60 million cubic metres. OPPORTUNITIES FOR INVESTING IN TOURISM The natural advantages of the Municipality of Lazarevac are considered as representing a solid foundation for tourism development. Lazarevac has a very favourable geographical position. Aside from belonging to the Belgrade region, the municipality has a good spatial position in relation to major transport arteries connecting routes in central Serbia. Two very important transport routes pass through the municipality: the Ibarska byway and the

Lazarevac has great potential for the development of tourism, industry and the production of environmentallyfriendly products Belgrade-Bar railway. The diverse geology of the area is especially advantageous for the development of recreational tourism, while the municipality boasts extremely abundant forests that could also be used to develop recreational tourism. The forests are easily accessible and well-connected to the town area.

The picturesque Town of Lazeravac is located some 55km from urban Belgrade and is an ideal tourist destination Lazeravac’s lowland areas are suitable for development of various recreational and sports fields. Over thirty football fields, including five equipped with top surfaces; more than twenty sports courts and modern shooting ranges make Lazarevac an ideal place for training camps as preparation for major sporting events. Numerous waterways (Očaga, Lukavica, Šušnjarica, Stubica, Krivaja, Crna međa and others), lakes and ponds represent rich natural resources and should be used as the foundation for the development of recreational facili-

ties in the town. These natural features provide a good basis for the development of hunting and ﬁshing, as well as rural tourism. The Kolubara mine basin also has recreational facilities. Some are ideal for motorcycle rallies, motor-cross and mountain biking. Currently, the municipal authorities are carrying out forestation projects in the surrounding hills, which are located between the valley lakes – making this area an ideal resort. There are over twenty small lakes surrounded by picturesque forests that can also be used for recreation and tourism. Belgrade 2009/2010 - The Investors Guide / 33

MLADENOVAC

OPEN FOR COLLABO BRANISLAV JOVANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF MLADENOVAC: “Anybody who is seriously considering launching production in our municipality will be given full logistical support from me, as the municipality’s president, and all relevant services.” CONTACT: BRANISLAV JOVANOVIĆ / Gradska opština Mladenovac, Janka Katića 6, 11400 Mladenovac; +381 11 8241 - 610, 8241- 620; +381 11 8230 - 145; www.mladenovac.rs; banejovanovic@mladenovac.rs; no language barriers, various interpreters available

By Tatjana OSTOJIĆ he geographical position of the Municipality of Mladenovac is considered as its most important potential and comparative advantage over neighbouring municipalities – says Branislav Jovanović, President of the Municipality of Mladenovac.

An increase in transit transport is quite noticeable in Mladenovac. Aside from having a good network of roads, what other features of the municipality are important to investors and what sets your municipality apart from other municipalities in Belgrade? The loan taken out by the municipality two years ago was spent on asphalting every single local road. Aside from the fact that the Belgrade–Niš railway runs through our municipality, we have a customs office right next to the railway station and are only ten minutes from the Belgrade–Niš motorway – thus being connected to the whole of Serbia – I would like to mention two more things. The M23 regional road (Belgrade – Kragujevac), which also passes through Mladenovac, has witnessed sharp increases in traffic activities in the past few years. According to some studies, we could easily call this a motorway due to the sheer volume of traffic, while internal analysis 34 / The Investors Guide - Belgrade 2009/2010

carried out by the Mladenovac police showed that an average of 1,500 vehicles per hour pass through the intersection of the M23 road (at the entrance to Mladenovac). This makes the road one of the busiest in the country. To some people this is just trafﬁc, but to me it is money. The Municipality of Mlad-

All companies in Mladenovac, aside from the Petar Drapšin Concern, have been privatised enovac and the City of Belgrade are currently working on construction of a bypass around Mladenovac, in order to redirect vehicles coming from the direction of Smederevska Palanka to non-metropolitan roads, which, in turn, will lead to greater transit rates. All BRIDGE

believe that the race is on. Although, according to some unwritten rule, investments usually enter our country from the north and gradually ‘slow down’ when they hit the south of Belgrade, Mladenovac is a bridge that cannot be missed. There isn’t much room on it, but whoever comes here first is a winner for sure.

companies in Mladenovac, aside from the Petar Drapšin Concern, have been privatised. However, in my opinion, those privatisations haven’t yielded the desired results, primarily due to mistakes made by the companies’ buyers. They failed to fully utilise the advantages of the municipality’s geographical position and qualified workforce. Mladenovac used to be one of the biggest industrial centres in the district of Šumadija, but – due to circumstances and the historical events of the past twenty years – mass production activity died down. Bearing in mind that our municipality has been officially considered a part of Belgrade for the past forty years, I do believe that the time has come to finally start supporting SMEs, as well as the municipality’s tourist and agricultural development. The best local products sold at Belgrade’s open markets have been coming from Mladenovac for years. We also have a big agricultural produce wholesale market just near the motorway, while Kosmaj Mountain, the Markovačko and Rabrovačko lakes and the Selters spa offer a multitude of possibilities for tourist activities in our municipality, which gravitates towards our capital city. We should also mention the boom in construction activities (be that residential or business premises) since 2000. Although major capital investors are quite cautious, so to speak, many in-

MLADENOVAC

RATION dividuals and families are increasingly moving to Mladenovac, where living expenses are much lower. Many housing units have been built and continue to be built here, with an average price of 600 euros per square metre. Quite a few people understand just how important is to be close to Belgrade and just how competitive the prices of residential and business units are here, as well as the prices of land plots compared to those in Belgrade proper. The municipality is currently implementing two large investments: the ﬁrst is acquisition of a large military complex called Sajmište, which has over two hectares of land in the town, and the second is construction of a contemporary shopping centre on the site of the former open market, also downtown. Does the municipality have an industrial zone and, if so, is the zone’s infrastructure in place? I will respond to this question in one sentence: the entire municipality of Mladenovac is an industrial zone that has complete infrastructure and a qualiﬁed workforce. What can the municipality offer potential investors at this moment? Do you have special incentives for investors and what industrial branch do you consider most suitable to invest in? Mladenovac is a town open to investors. When I say “open”, I mean that anybody seriously contemplating launching production in our municipality will be given full logistical support from me, as the municipality’s president, and all relevant services. So far, I have been personally involved in expediting the process of issuing building permits to potential investors and I in-

Center of Mladenovac tend to continue to do so in the future. I don’t want to suggest what branch they should invest in, but I will tell you that Belgrade is rapidly expanding. Belgrade is the biggest food consumer in the country and when you are stuck up in your skyscraper ofﬁce, surrounded by smog and noise, a weekend in the wooded Kosmaj area or the Selters spa, which is only half an hour from Belgrade, will eliminate every ounce of

Mladenovac is open for investors...anybody seriously contemplating launching production will receive full logistical support stress in you. I think this is where the proﬁt lies. Anyhow, I would like to invite all investors to come here or meet with me in order to see for themselves what Mladenovac can offer. How long does it take for an investor to obtain all required permits and documentation for doing business here?

Me and my associates view every new job created here as a small victory for our municipality. When it comes to issuing permits, there are certain legal deadlines that we cannot make any shorter – since they don’t depend on the Municipality of Mladenovac – but any permit, document or information that an investor needs from our municipal services will be provided the very same day or will be waiting the next morning, on the investor’s desk, together with his morning coffee. What are the most important investors that have invested in your municipality so far? I don’t want to repeat my earlier comments about major capital or the global economic crisis which, unfortunately, has become an excuse for all our problems. I have established ofﬁcial contacts with the Slovenian and British ambassadors, who have conveyed their impressions to interested investors. You can see this interest materialised just a few hundred metres from the place where we are currently situated at the entrance of Mladenovac - where we are building a large shopping centre stretching across several tens of thousands of square metres. Belgrade 2009/2010 - The Investors Guide / 35

ECONOMICS

PRUDENCE PROPOSED According to Erste analysts, Investor sentiment has improved, but a selective strategy on financial markets is still recommended

Traders work on the floor of the New York Stock Exchange on 15th September 2008. A stunning reshaping of the Wall Street landscape sent stocks tumbling sharply that day, with the demise of Lehman Brothers Holdings Inc. and Bank of America Corp.’s acquisition of Merrill Lynch & Co. By Željko POPIVODA he global economic and financial crisis seems to have halted, at least for the time being, with monetary and fiscal policy measures taken by central banks and governments having succeeded in containing the crisis. “Right now we cannot really say if the crisis has been completely overcome and cut at the roots,” notes Fritz Mostböck, Head of Erste Group Research. Nevertheless, the sentiment among businesses and market participants has brightened enormously. A wait and see possible is now required to gauge if global liquidity measures and interest rate cuts made by various central banks have been successful. In some areas of the economy, the trend is moving moderately upwards again, while

36 / The Investors Guide - Belgrade 2009/2010

in others the crisis has hardly abated. Erste Group analysts, therefore, recommend sticking to a selective strategy on financial markets and overweight cash for now, formally recommending: overweight cash, underweight bonds, stocks neutral. OUTLOOK The U.S. economy is to be supported in the second half of 2009 by temporary factors and is expected to slow down again in 2010. The country’s economy seems to have bottomed out and, following the slight decrease in Q2, the third quarter will record a considerable increase. Nevertheless, the factors that have played a role in the economic growth seen over the past three months will already subside by the start of this year’s fourth quarter or in the first half of 2010. For example, the U.S. version of the scrap-

page premium for cars helped to boost car sales massively in July and even more in August. However, this scheme has come to an end. Thus, the only support expected in Q4 should come from inventory reduction. Overall, Erste Group analysts perceive the U.S. economy as being supported in the second half of 2009 by temporary factors and, as such, it is expected to slow again next year – though it should not slip back into recession. The economic outlook for 2010 is bleak, with the stimulus package by the U.S. government and the liquidity injections by the Fed already accounted for. Consumer demand should remain subdued and high overcapacities lead us to expect the same for investments. The U.S. central bank, The Fed, will remain in the spotlight. The Fed has been pumping massive amounts of liquidity into the economy in an

ECONOMICS ASSET ALLOCATION FOR 4Q 2009 NEUTRAL PORTFOLIO Cash Overweight Bonds Underweight Stocks Neutral INTERNATIONAL BOND PORTFOLIO Europe Neutral USA Underweight Japan Neutral Emerging Markets Overweight INTERNATIONAL STOCK PORTFOLIO Europe Overweight USA Underweight Japan Neutral Emerging Markets Slightly overweight FX allocation Dollar block Underweight unprecedented fashion. Accordingly, it has a difficult task ahead of it next year because it has to remove liquidity from the economy in the correct doses. If it withdraws liquidity too soon, the chances are that the economy will be stifled. Delayed action, on the other hand, could result in rising inflation rates down the line. “We think that the Fed will start withdrawing liquidity in the second quarter of next year at the earliest and we do not expect interest rate hikes before the third quarter,” commented Rainer Singer, Co-Head of CEE Macro/Fixed Income Research.The mediumterm risks of an expansive monetary and fiscal policy are expected to cause the U.S. Dollar to depreciate further. Meanwhile, the U.S. equity market offers limited upward potential for U.S. stocks in the medium term; emerging markets fundamentally more attractive. The medium-term upswing started in March and has continued throughout the past months on the U.S. equity markets. Almost all sector indices posted gains in the past quarter. However, the fact that utilities proved extremely weak, closing down on the quarter, shows that investors’ long-term interest in U.S. equities is of a limited nature. Additionally, Erste Group analysts point out that while U.S. share indices have been rising since March, turnover has been sliding. This leads them to conclude that the most

Rainer Singer, Co-Head of CEE Macro/Fixed Income Research recent upswing on the stock exchange in the U.S. is less stable than on other markets. According to the assessment of Hans Engel, International Equity Markets analyst at Erste Group, “Overall, we do not perceive much potential for U.S. equities over the medium term. On the one hand, the valuations are not low enough to provide a reason to buy, while on the other hand the growth pros-

mental support measures, such as the passenger car scrap premium. Sentiment and leading indicators show that economies in the euro zone are expected to move out of recession already in the third quarter of this year. However, this economic recovery should not be overestimated. The economy is still close to the trough and it remains to be seen if consumer demand will be able to improve sustainably. Erste Group analysts’ full year GDP forecast of -3.6% remains intact. “The insecurity regarding the precise impact of the recession on the labour market will weigh on consumption propensity for some time to come,” explains Rainer Singer. The lower capacity utilisation rates and weak company earnings suggest only weak dynamics for capital expenditures in the corporate sector. The forecast for 2010 GDP growth in the euro zone is still cautious and stands at +0.4%. Accordingly, inflation should remain low in the foreseeable future. It is to be assumed that the European Central Bank will only gradually increase key lending rates again in the second half of 2010. However, Erste Group analysts expect yields on ten-year German government bonds to rise, due to the growing degree of indebtedness.

The euro zone countries’ interest rates and the bond market are expected to have rebounded from recession in the third quarter of 2009. pects for the near future are lacking”. Right now there are much more attractive alternatives on emerging markets that offer lower risk and probably greater potential. The long-term perspective is clear: US equities will not be the outperformers of the coming years. Therefore, the recommendation of analysts remains to strategically underweight US equities. Overall, in this phase of the global economy a generally neutral equity weighting seems appropriate. In Euroland, meanwhile, interest rates and the bond market are expected to have rebounded from recession in the third quarter of 2009, though sustainable consumer demand is still questionable. Industrial production and private consumption have already benefited from govern-

Belgrade 2009/2010 - The Investors Guide / 37

INTERVIEW

SUCCESS STORY It was back in 2004 that drinks’ can manufacturer Ball Packaging Europe took a gamble on Belgrade by making a massive Greenfield investment in the city’s Zemun municipality. Five years on, BPE’s David Banjai says: “we were positive about investing in Serbia, and we were proven right”. By Mark R. PULLEN What prompted Ball Packaging

to opt for Serbia at a time when the country was still considered ‘risky’; did you consider any other serious options in the region? Ball Packaging Europe (BPE) came 38 / The Investors Guide - Belgrade 2009/2010

to Serbia in 2004 as the first big greenfield investment since the beginning of the transition. One of the reasons was Serbia’s central position in the region of SEE – a region that shows constant growth year on year. Other reasons are obviously the tax incentives and the availability of a highly qualified work-

force, which was the basis for creating one of the best teams. These are all reasons why we were positive about investing in Serbia, and we were proven right. In the past few years our Belgrade Plant has grown into one of the best within our group, with very high standards of operation.

INTERVIEW Many investors complain about the

lengthy process required to obtain all relevant permits and approvals. How did Ball ﬁnd this process? BPE has been literally stepping on new land as an investor here. For example, our request to acquire the land on which we built our site at ﬁrst seemed unfeasible, because the necessary law was not in place. Over the past years, though, the Serbian government has implemented a number of legislative initiatives to increase the attractiveness of the location for foreign investors. As far as the permitting process is concerned, although it might seem lengthy, we have always found it pretty straightforward. If you plan right, have a good understanding of the local regulations and approach things openly, there will be no issues. The facility you eventually constructed is truly a giant. Has the company managed to grow into it

over recent years? Our primary and initial investment (project) in Serbia has achieved great success. As early as in 2004, when we opened our factory in Zemun, we considered the possibility of additional investments requiring careful, cautious

If you plan right, have a good understanding of the local regulations and approach things openly, there will be no issues and detailed preparation before the immediate implementation takes place. Over the years we’ve demonstrated consistency and continuous improvement and the timing of the next step will only be determined by the market itself. What direct or indirect effects does

Ball’s presence have on the drink makers you serve? Beverage cans are high quality, sustainable packages and with our strategy to be in close proximity to our international customers we are able to provide them with this packaging from logistically favourable shipping points helping us and our customers to reduce our carbon footprint and become more sustainable. However, Ball Packaging Europe takes into consideration all of its stakeholders. A successful formula that the Company applies is its commitment and devotion to sustainable economic development, through its work with our customers, employees, the local community and society as a whole, so as to improve their way of life. We are not turned only outward, but also inward toward our excellent team, which embodies a high level of skills and know-how, all leading to the continuing progress and improvements by exchanging and sharing the best so-

THE PURSUIT OF NEW BUSINESS ACCOMPLISHMENTS Being triggered by a strong belief that Serbian consumers feel a great affinity for Greek products, company ”Veropoulos” entered the Serbian market in 2001, having opened its first supermarket in Belgrade. By opening two more ones, its investments have amounted to 40 million euros so far. Despite the global downturn, yet satisfied with the accomplished results, it has announced enhancing its business operating and investing about 25 million euros in building a supermarket at Belgrade municipality of Vozdovac and a small trade centre of around 6 000 m2 at Belgrade municipality of Cukarica in the next several months. Besides opening supermarkets in Belgrade, it has planned to invest in opening five objects of this type across the country and, in that way, employ many highly qualified people. Pleased with feelings of friendliness and appreciation in Serbia, a general manager of company ”Veropoulos”, Mr. Vasilis Kakagiotis, states: ”We are quite satisfied with the already achieved business

results in Serbia, even though the local authorities have shown some inefficiency in solving a certain segment of our operating, now everything seems to be improving. From the very beginning of our entering the Serbian market, we are constantly monitoring our customers’ needs in order to provide them with the supreme quality of services and a variety of Serbian and Greek products at favourable prices. As a result, after eight years of operating in this country, we have succeeded in acquiring an impressive reputation in the field of retail trade and winning the trust of numerous customers. Furthermore, we have set the stable foundation for new and better business accomplishments. We are aware, though, that there are no ideal conditions for business operating especially in times of financial crisis, but we create them by great efforts. Thus, our company is a good example of wise investing – our steps are slow but certain.” Veropoulos d.o.o. Beograd

Belgrade 2009/2010 - The Investors Guide / 39

INTERVIEW

lutions and experience/practice. How has the global crisis and lo-

cal economic downturn impacted on your operations? Our business is obviously not crisis proof, but it has proven to be crisis resistant. What have been impacted are not our current operations, but our growth. The business results of BPE have continued to grow in 2008, while our sales volume in 2009 will itself be on a similar level both in Europe and Serbia. That means that we have developed better than the market and also better than our competitors. When the European market starts to grow again, the greatest growth rates in demand will probably come from central and eastern Europe, where we are strategically very well located.

be that as a company alone or within foreign business associations? Our Company, as the ﬁrst major greenﬁeld investment project in Serbia, offers a good example of long-term cooperation between foreign investors and the state. The Serbian Government, with certain tax solutions, has created a fa-

ration of European standards into the national legislation and the readiness to beneﬁt from the fact that most of the others have already gone through the accession process and that solutions based on best practice already exist. What steps, if any, would you like

to see the government take in order to improve the climate for doing business in your sector here? We definitevly support all that the Government does toward the promotion of export and direct foreign investors, as well as its intention to preserve the level of employment and strenghten export possibilities. For us it is crucial - and no doubt for other investors too - that the Serbian government pursues a clear and consistent course in economic policy in the long term and establishes reliable basic conditions.

For us it is crucial - and no doubt for other investors too - that the Serbian government pursues a clear and consistent course in economic policy in the long term

How would you deﬁne your rela-

tions with the relevant authorities, 40 / The Investors Guide - Belgrade 2009/2010

vourable climate and helped us through the process of foundation and, presently also to a great extent, in the functioning of the factory. What political and social devel-

opments do you consider as being positive to your operations and what have proved to be shortcomings? All the efforts that have been made in terms of EU accession, the incorpo-

Belgrade 2009/2010 - The Investors Guide / 41

NOVI BEOGRAD

NENAD MILENKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF NOVI BEOGRAD AND PRESIDENT OF THE STANDING CONFERENCE

OUTSTANDING BUS NENAD MILENKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF NOVI BEOGRAD: “Novi Beograd (New Belgrade) is the biggest building site in Serbia and many investors have decided to locate the headquarters of their companies in this municipality” CONTACT: ALEKSANDAR JOKSIĆ, DIRECTOR OF THE CENTRE FOR DEVELOPMENT AND LOCAL ECONOMY / Bulevar Mihajla Pupina 167, 11070 Novi Beograd; +381 11 310 67 09; 311 50 09; +381 11 311 50 09; crle@novibeograd.rs

ovi Beograd is an urban area that covers 4,074 hectares. According to the 2002 cenusus, the municipality had 217,773 inhabitants. The metropolitan Municipality of Novi Beograd is one of Belgrade’s 17 municipalities and the massive residential project in New Belgrade was launched immediately after World War II. Since then it has developed into a contemporary metropolis in its own right, situated on the left bank of the River Sava. In an administrative sense, the municipality’s southeast section begins on the left bank of the Danube at the confluence with the Sava. The municipality also lies northwest of so-called ‘old’ Belgrade and is linked to this part of the city via five bridges (Branko’s bridge, Gazela, Old Sava Bridge, Old Bridge and New Railway Bridge), while the E-75 motorway runs through the very centre of Novi Beograd. The most dominant economic branches here are the financial sector, service sector, consultancy services, retail trade, sports and recreation, construction and real estate services. Novi Beograd has become a hot spot for investors or recent years, which has led to the municipality experiencing a real economic boom – says municipal president Nenad Milenković. According to Milenković, well-developed infrastructure, i.e. excellent roads and the close proximity of the airport, are responsible for these business results.

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ADVANTAGES OF GOOD INFRASTRUCTURE Today, Novi Beograd is the biggest building site in Serbia and many investors have decided to locate the headquarters of their companies in this municipality. According to the municipality’s president, Novi Beograd, as a young metropolitan area, was built in accordance with relevant plans from the very beginning,

Novi Beograd’s constructed facilities are among the finest business premises in the entire region

which is why the municipality is wellregulated today. Moreover, there is still a lot of unused construction land here, as well as an advanced infrastructure, quality roads, the airport nearby, the best hotels and regulated property issues. All of this has led to Novi Beograd becoming the most interesting investment location in the past eight years, which, in turn, has had a beneﬁcial effect on the municipality’s development. According to Milenković, only 12% of total available construction land was not occupied at the end of 2008, which ensures there are still enough development opportunities for those wishing to invest in Novi Beograd. It is worth mentioning that the facilities that have been constructed and those still under construction are some of the ﬁnest business premises

CO-OPERATION

t the Local Self-Government Fair, Nenad Milenković and Vladan Živanović, Director of Microsoft in Serbia, signed a Memorandum of Understanding on co-operation in the IT sector. Speaking on the occasion, President Milenković said that signing the agreement would make it possible for local self-governments in Serbia to collaborate with the renowned company that Microsoft is, while being given preferential treatment. “It is also quite important that such an important company as Microsoft is paying enough attention to clients that are not as big as the ones that Microsoft currently has, particularly in the current economic situation. By signing this memorandum we are going to facilitate long-term co-operation with the most significant company in the IT sector. As a result of this co-operation, our municipalities will gain easier access to know-how and the potential of this company and its partners. I am thankful to Microsoft Serbia for being understanding enough to collaborate with the municipality and I am glad that we were able to use this opportunity and sign the memorandum at the first Local Self-Government Fair. I do hope that most Serbian municipalities will utilise this possibility to the fullest, while I also hope that the use of information technologies and software in Serbia will finally be fully legalised,” said Milenković.

NOVI BEOGRAD OF TOWNS AND MUNICIPALITIES OF SERBIA (SKGO)

INESS RESULTS in the entire region, while an industrial zone on a stretch of land leading to the airport is currently being developed. The municipal authorities will focus more on developing a complementary infrastructure in the following period – i.e. parking lots, sports and recreational facilities, parks, nurseries and schools – with the aim of making Novi Beograd the best place to live and work. INVESTMENT POTENTIALS Municipal president Milenković, who is also president of the Standing Conference of Towns and Municipalities of Serbia (SKGO), says that Serbian municipalities have great investment potential. “There is no doubt that the potential exists, but the municipalities that decide to put this potential to use should be thinking in the same way as investors, i.e. to provide what is missing, be quick on their feet and encourage overall social processes with educating the workforce representing one of the most important processes. Not everything boils down to providing land for construction, electricity and water supply to an investor that wants to build a factory or business premises. We need to have adequate human resources in order to attract better quality investments in Serbia,” insists Milenković. According to him, the government needs to invest serious efforts into improving the country’s infrastructure, since there is no successful economy without good quality roads and fast railways. The most successful municipalities in terms of investments are those that gained such an advantage early on, i.e. primarily those that are situated on the Pan-European Corridor 10 route and are close to Belgrade’s Nikola Tesla Airport. Of course, this doesn’t apply to all such municipalities, since many development aspects depend on the municipalities themselves. Still, being close to good infrastructure

Novi Beograd’s blocks of Blokovi - a post-WWII housing project that has developed into the city’s emerging central business district is certainly a very important prerequisite. Milenković says that it is up to local authorities to be efﬁcient on matters of spatial planning and documentation; to simplify and expedite procedures and provide infrastructure in line with their jurisdiction. Additionally, he notes, educational capacities and human resources also need to be improved.

We need to have adequate human resources in order to attract better quality investments in Serbia According to Milenković, one of SKGO’s goals is to raise the capacities of local self-government in Serbia. Hence, SKGO is implementing a substantial number of projects, working together with the local authorities to take on more responsibility and activities. “Also, as a collective voice

of the Serbian municipalities and city, we are talking to the Serbian government and relevant ministries, as well as international organisations and foreign countries, about the problems that Serbian municipalities have in enticing in investments. We are also offering our support to simplifying the procedures that have to be implemented by municipalities. This is done via NALED, of which we are members. I am personally trying to establish collaboration between Novi Beograd’s economy and other municipalities in Serbia, since I think that the interests of our municipality complement those of towns in the rest of Serbia that have the kind of potential that Novi Beograd, as a highly urbanised area, doesn’t have. I believe that many companies would like to use business premises in Novi Beograd for their headquarters and branches, while their production facilities, distribution and processing centres could be located in the municipalities that have much cheaper land and easier access to needed resources,” Milenković outlines. Belgrade 2009/2010 - The Investors Guide / 43

NOVI BEOGRAD

CENTRE FOR DEVELOPMENT AND LOCAL ECONOMY – NOVI BEOGRAD

EXCELLENT INVESTMENT LOCATION

West Gate of Belgrade

The Centre studies and implements experiences in the economic development of local communities in Serbia and abroad, co-operating with domestic and foreign development institutions and government agencies. he Centre for Development and Local Economy – Novi Beograd (CRLE) has a clear vision of creating an environment where investments are made with the view of a balanced and sustainable development and the aim of improving the quality of life while creating an ideal balance between business and administrative aspects and good living conditions in Novi Beograd. The Centre’s specific mission is to advance the economic development of Novi Beograd. The Centre’s objective is to advance Novi Beograd’s economy through promotion of the municipality as an excellent location for entrepreneurial activities, while simultaneously attracting domestic and foreign investors, dispensing advice to citizens who want to start their own businesses and providing relevant training. The Centre also serves as a consultancy for new entrepreneurs and is

44 / The Investors Guide - Belgrade 2009/2010

engaged in systematising the datebase containing economic information about Novi Beograd. It also provides support in establishing public-private partnerships and identifying economic development resources in the municipality, as well as its economic valorisation. The Centre studies and implements experiences in the economic development of local communities in Serbia and abroad, co-operating with domestic and foreign development institutions and government agencies. It also devises plans for the economic development of Novi Beograd, implementing these plans together with city and state authorities. At the same time, the Centre organises entrepreneurial events like investment fairs, employment fairs and business gatherings, with the aim of confering on activities aimed at strengthening entrepreneurial potential. The Municipality of Novi Beograd is the only Belgrade municipality that has a Strategic Local Economic Development Plan. The Centre for Development and Local Economy participates in several projects like Exchange Two – a joint project implemented by the European Commission and the Standing Conference of Towns and Municipalities; the youth work practice programme in co-operation with the Balkan Children and Youth Foundation; the youth entrepreneurship programme, which is an educational programme implemented together with USAID; the solid waste management projects and projects write local environmental action plans. The Centre also takes part in employment and health fairs and dispenses free advice to potential enterpreneurs and other citizens wanting to start their own businesses.

FIRST LOCAL SELF-GOVERNMENT FAIR

he first Local Self-Government Fair was recently held in Novi Beograd’s Hala Sportova (the Sports Hall). The fair was organised by the Ministry of State Administration and Local SelfGovernment, the Standing Conference of Towns and Municipalities and the municipality of Novi Beograd. Over 70 Serbian municipalities and towns took part in the three-day event, which completely met the expectations of everybody involved. The goal of the fair was to assemble all Serbian municipalities and towns in one place, i.e. to group their economic, cultural, tourist and other potentials and present them to interested companies, investors and donors. The fair was opened by prime minister Mirko Cvetković, the minister of state administration and local self-government, Milan Marković, and Nenad Milenković, the president of both Standing Conference of Towns and Municipalities and municipality of Novi Beograd. The fair was a perfect opportunity for the municipalities and towns in Serbia to exchange experiences, directly communicate with ministers and state secretaries, get answers to any questions they might have had about the local issues. The Centre for Development and Local Economy of Novi Beograd was a prominent participant. At the Fair, the Centre explained the process of applying for EU funds.

BUSINESS

VIG PLAZA – NEW BUSINESS CLASS IN NEW BELGRADE ew Belgrade’s business district has been further enriched with a new office building – VIG Plaza. This modern Class A office building is located in New Belgrade’s prime business zone of Block 11 A – Tresnjinog Cveta Street. Vienna Insurance Group, one of the leading insurance companies in the region, invested over €42 million in the construction of this highly automated “smart” office building. An automated system of management and the utilisation of geothermal energy will not only lead to increased energy efficiency and savings, but also to a significant reduction in emissions of pollutants into the atmosphere. VIG Plaza facility unites numerous

advantages: an exclusive location, excellent infrastructure, modern design and comfortable space. The level of planned equipment and the quality of the building’s business environment make the VIG Plaza one of the most modern

One of the most modern business facilities in the wider region business facilities in the wider region. All of VIG Plaza’s business suites, common areas and conference rooms have been designed to provide maximum comfort and fulfil all the needs of modern ways of doing business. The specific three-layer glass

façade with integrated sun protection, as well as the most modern air conditioning system, allow for maximum comfort. The “open space” concept of the VIG Plaza enables the space to be organised according to the wishes and needs of the end-user. Some of the highlights of the VIG Plaza building include the spacious lobby, conference rooms and attractive 7th floor terrace, which are ideal for organising various events. The VIG Plaza has entered its final stage of construction, encompassing eight floors with a recessed top floor and over sixteen thousand square metres of the highest quality office space, as well 130 parking slots in two underground levels. Completion of the building is scheduled for the beginning of 2010.

Belgrade 2009/2010 - The Investors Guide / 45

OBRENOVAC

AGRICULTURE & TO ŽELJKO JOVETIĆ, PRESIDENT OF THE MUNICIPALITY OF OBRENOVAC: “Besides its strategic location, Obrenovac has many other advantages, such as access to all major transportation infrastructure routes (Pan-European corridors 10 (road/rail) and 7 (River Danube)).” CONTACT: ŽELJKO JOVETIĆ / Vuka Karadžića 74, 11500 Obrenovac; +381(0)11/8726-402; +381(0)11/8721-996; www.obrenovac.rs; zjovetic@obrenovac.org.rs; English

esides its strategic location, Obrenovac has many other advantages, such as access to all major transportation infrastructure routes (PanEuropean corridors 10 (road/rail) and 7 (River Danube)), proximity to Belgrade International Airport, highly developed infrastructure and many other attributes. Obrenovac is a town and municipality in the greater Belgrade area. Its name is derived from the surname Obrenović (a Serbian royal dynasty). The municipality, which had a confirmed total population of 75,949 in 2003, stretches along the mid part of the Lower Kolubara Basin, penetrating the region of Šumadija to the east and south along the wide valleys of the rivers Kolubara and Tamnava. To the west it borders Pocerina brinks, while its northern edges are encircled by the meandering River Sava as it heads for Belgrade to empty into the Danube. Obrenovac Municipality covers an area of 409 square kilometres, of which 42 are urban settlements. The terrain is mainly flat plains with some mild, undulating upland hills. Significant roads meet in Obrenovac. Urban central Belgrade is just 29 kilometres away to the east and roads from there cut through Obrenovac westwards to Šabac, Loznica and the borders with Bosnia & Herzegovina and Croatia via Valjevo and the Ibarska regional road – eventually linking to the Adriatic Coast. Obrenovac has very good

46 / The Investors Guide - Belgrade 2009/2010

transport connections with Vojvodina. When completed, the new bridge over the Sava will restore the town’s status as a crossroads of signiﬁcance, which it enjoyed when the border between Austria-Hungary and Serbia ran along the Sava and Obrenovac, through the Port and Customs points in Zabrezje, which

Obrenovac is a Serbian energy centre and one of the most important energy centres in the Southeast Europe region represented the export link of the Serbian state with the central and western European countries of the age. Whether you are looking to gain access to the Russian market or those of Southeast Europe, lower your operation costs, ﬁnd skilled labour at competitive rates,

relocate and still remain close to your assembly and distribution centres or get the ﬁrst mover advantage in the Balkans, Obrenovac is the place that meets your needs. Invest in Obrenovac Serbia is an initiative with a mission to ensure investors get the maximum value from their investment in Obrenovac. Besides its strategic location, Obrenovac has many other advantages, such as access to all major transportation infrastructure routes (Pan-European corridors 10 (road/rail) and 7 (River Danube)), proximity to Belgrade International Airport, highly developed infrastructure and many other attributes. It is the location that can meet any investor’s needs, as we like to say. The strategic location of Obrenovac and access to all major transportation infrastructure, coupled with our efﬁcient administration, will all be decisive factors for your success. Obrenovac, as a Serbian energy centre and one of the most important energy centres in the Southeast Europe region, attracts the interest of foreign companies

HISTORY

p to the 19th century, Obrenovac bore the Turkish name of Palež. However, during the Second Serbian Uprising it was completely burned to the ground and, in 1859, Prince Miloš Obrenović - after whom it was named - restored the town. The Municipality of Obrenovac has been within the community of Belgrade municipalities since 1957 and the Founding Day of the Municipality is 20th December: the date of the decree of Prince Miloš Obrenović that instituted the name of Obrenovac, while its patron saint day is the Holy Trinity.

OBRENOVAC

URISM considering expanding their business to this region or relocating production to an area just beyond the EU’s borders. Obrenovac, as a city of the Posavina Region (Sava river basin) that boasts high quality arable land, can offer large scale agriculture investment opportunities. The Municipality of Obrenovac, which is composed to 29 local communities, has a potential future in tourism development. Contributing to the sector’s potential for rapid development are the proximity of urban Belgrade and the airport, the Belgrade-Obrenovac highway, the Obrenovac-Šabac regional road, Ibarska main road and the rivers Sava and Kolubara. There are also other complimentary factors that are important for the prosperity of this municipality. The main entrance to Obrenovac reveals the symbolic landmarks of the city, including the Hotel Obrenovac, the mineral water spring, summer and the winter swimming pools and a natural picnic area that is also a resort. These main factors lay the platform for the further development of spa tourism and recreational tourism. The lifelong dream of the residents of Obrenovac is that their hometown increases its importance as a tourist destination – not only attracting domestic visitors, but also foreign tourists. Their wish is justified, because Obrenovac is home to a high quality mineral water spring with qualities that were confirmed as far back as 1899. In spite of the fact that the spa project has yet to be carried out, the existing hotel’s capacities are used for other purposes. Close to the hotel and mineral spa are the summer and the winter swimming pools, which satisfy all sporting and recreational requirements – as confirmed by their regular use by many famous sporting clubs. Besides

Environment Minister Oliver Dulić visiting TENT B in Obrenovac accommodation, the two-star Hotel Obrenovac offers other facilities, such as a restaurant, night club, conference room, terraces and open & closed parking garages. The simplest way to explain what this hotel offers is to say that it of-

for them is the close proximity of the hotel, able to cater to their needs. Along the rivers Sava and Kolubara and beyond the hotel’s park, stretches the urban picnic area called Zabran. It is a unique setting in oak woods, with an excellent cross-country running track, walking area and relaxing areas. There is also a beach along the River Sava, equipped with showers, pontoons, boats and fishing compounds, as well as three restaurants offering distinctive fish specialities. In addition to spa and recreational tourism, a third potential tourism option lies in development of Obrenovac’s sport hunting and fishing tourism capabilities, while a great advantage is ensured by the whole Zabran area.

Obrenovac is a city of the Posavina Region (Sava river basin) that boasts high quality arable land fers everything you need in its category and can be compared to any other hotel in the same category. Beside the hotel, mineral spa and swimming pools, another facility with great underexploited potential in Obrenovac is it football stadium. The ground is a good training facility for footballers and athletes, while the most important thing

Belgrade 2009/2010 - The Investors Guide / 47

PALILULA

BIG SCALE AGRICU DANILO BAŠIĆ, PRESIDENT OF PALILULA MUNICIPALITY: “Palilula has the largest | agricultural area of all municipalities of Belgrade, covering an area of 298 square kilometres, which equates to 66.5% of the municipality’s entire territory.” CONTACT: DANILO BAŠIĆ, MUNICIPAL PRESIDENT / Takovska 12, 11000 Belgrade; +381(0)11/3243-118; www.palilula.org.rs; predsednik@palilula.org.rs; English

alilula is an urban neighbourhood and one of the 17 municipalities which constitute the City of Belgrade. It covers the greatest area of all of Belgrade’s municipalities and lies to the east of Terazije in downtown Belgrade. Like the majority of Belgrade’s neighbourhoods, it has no precisely deﬁned boundaries and is roughly bordered by Ruzveltova Street and the municipality and neighbourhood of Zvezdara to the east; the neighborhood of Hadžipopovac in its own municipality to the north, the municipality of Stari Grad and Jevremovac to the northwest (Jevremovac actually belongs to the neighbourhood of Palilula, but is administratively part of Stari Grad), and Tašmajdan and Kralj Aleksandar Boulevard to the south, forming a border with the municipality of Vračar. Several small local communities also make up this area.

NAME PECULIARITIES Palilula’s name is derived from the expression pali lulu, which in English means light a pipe. One anecdote goes back to the time when Belgrade and Serbia were occupied by the Ottoman Empire and Palilula used to be the area where most crops were, so Turkish rulers banned smoking following a few instances of accidental setting of crops on ﬁre. In late summer and early autumn,

48 / The Investors Guide - Belgrade 2009/2010

when all crops had been gathered, the smoking ban was lifted and locals announced the fact by calling neighbours and letting them know that pipes may

Palilula’s industrial and sub-industrial economic activities mostly take place along the right bank of the Danube be lit. Another explanation comes from period of Prince Miloš Obrenović’s rule, who banned smoking in Belgrade

and only permitted smoking outside the city’s gates. LOCAL ECONOMY Palilula’s industrial and sub-industrial economic activities mostly take place along the right bank of the Danube, which includes the highly industrialised neighbourhoods of Viline Vode (TEMPO Cash & Carry centre, several gravel and sand extracting companies on the Danube’s bank, Beograd put, Centroprom, Martez, Tehnohemija, Jugopapir, Duga, Avala cardboard factory, Balkan, eastern Port of Belgrade and the Belgrade-Danube railway station) and Ada Huja (warehousing and construction companies, including a series of concrete plants and gravel and aggregates storage and treatment facilities, paper

HISTORY

he neighbourhood originates from the first half of the 18th century, when Habsburg Monarchy occupied northern Serbia from 1717 to 1739. The settlement, built as an outer suburb of Belgrade, was originally named Karlstadt and was well known for its local agriculture and craftsmanship. Palilula became overwhelmingly populated by Serbs in the early 19th century. In 1840 the villagers of Palilula rejected the regulatory plan of Belgrade on basis that projected new streets would be too wide. They later even tried to split from the municipality of Belgrade, because of the city government’s low funding for the village. However, in the late 19th century Palilula became part of the continuously urbanised area of Belgrade. The neighbourhood is almost entirely residential, with many commercial facilities close to the centre of Belgrade.

PALILULA

LTURE & INDUSTRY and cardboard factory Avala-Ada, furniture factory Novi Dom, gravel storage facilities of Tembo and DV Trade, etc). It also includes a series of brickworks, which occupy extensive areas of the northern ridge of the Field of Višnjica (Polet, Trudbenik, Jedinstvo, Kozara, Balkan, Rekord). There is also extensive industrial zone in Krnjača and agricultural industry in Padinska Skela. Palilula is traversed by some of Belgrade’s major transport routes (road and rail), including the Zrenjaninski put, Pančevački put, Višnjička Street, Slanački put, etc. Belgrade’s only bridge over the Danube, Pančevo Bridge (road and rail) is located in Palilula. Intensive agricultural production is developed in the Banat section and eastern areas around Veliko Selo, producing large amounts of food (grain, fruit, vegetables, dairy products, etc) for the population of Belgrade. Palilula has the largest agricultural area of all municipalities of Belgrade, covering an area of 298 square kilometres, which equates to 66.5% of the municipality’s entire territory. CULTURE, EDUCATION AND SPORTS Urban Palilula hosts some of Belgrade University’s most important faculties: the Technical Faculty, the Faculty of Law and the Mining and Geology Faculty. Furthermore, the building of Radio Television Serbia, the majestic St. Marko’s Church, Tašmajdan Park, Pionir Sports Hall and the stadium of football team OFK Belgrade are all located in the municipality. TOURISM Bela Stena beach and spas of Višnjička Banja and Ovčanska Banja are currently under used and underdeveloped.

St. Marko’s Church

Palilula is traversed by some of Belgrade’s major transport routes (road and rail) Belgrade’s largest go-kart racing track is located at Ada Huja. The planned artiﬁcial island of Čaplja on the Danube is projected as a modern entertainment park, complete with aqua parks, golf courses, etc. POPULATION With an estimated population of 157,924

on 31st December, 2005 (155,902 according to the last census of 2002), Palilula is the third most populous municipality of Belgrade (after New Belgrade and Čukarica), but population growth, as in the rest of Belgrade, is slowing. The area with the highest rates of population growth in the municipality remains the suburb of Borča.

Belgrade 2009/2010 - The Investors Guide / 49

RAKOVICA

BELGRADE’S MOST IN BOJAN MILIĆ, PRESIDENT OF THE MUNICIPALITY OF RAKOVICA: Among the many factories in the Rakovica area are: Industrija motora Rakovica – IMR , Rekord, 21 Maj, Frigostroj, IMP, MESSER Tehnogas, et al. CONTACT: BOJAN MILIĆ, MUNICIPAL PRESIDENTS / Miška Kranjca 12, 11090 Belgrade; +381(0)11/3051-700; www.rakovica.rs; office@rakovica.rs

akovica is an urban neighbourhood and one of the 17 municipalities which constitute the City of Belgrade. The municipality is located to the south of central Belgrade and is bordered by the municipalities of Savski Venac to the north, Voždovac to the west and Čukarica to the east and south. Its neighbourhood of Resnik marks the most southerly point of Belgrade City proper. Rakovica is located in the valley of the River Topčiderka, where the Rakovički stream flows into the river just nine to ten kilometres from Terazije in the heart of downtown Belgrade. The neighbourhood has developed between two large woods, Košutnjak in the north and Manastirska šuma in the south – to the north of

Rakovica Monastery. It is bordered by the neighbourhoods of Kanarevo Brdo to the northeast, Miljakovac to the east, Kneževac to the south and Vidikovac and Skojevsko Naselje to the west. As in many cases, the boundaries between the neighbourhoods are not firmly set, meaning some parts Rakovica overlap with Kneževac or Miljakovac, for example. The neighbourhood of Rakovica Village is some six to seven kilometres further eastwards and belongs to the Municipality of Voždovac. It is generally not associated with the municipality of the same name. POPULATION According to the 2002 census, Rakovica’s population totalled 99,000. For-

Industrial centre

50 / The Investors Guide - Belgrade 2009/2010

merly one of urban Belgrade’s highest population growth municipalities, growth has slowed since the 1990s. However, Rakovica remains one of the most densely populated municipalities in Belgrade, with 3,414 inhabitants per square kilometre (8,842.2/sq mi). ECONOMY Rakovica is one of the most industrialised parts of Belgrade. Among the many factories in the Rakovica area are: Industrija motora Rakovica – IMR (engine factory), Rekord (tyre factory), 21 Maj

HISTORY AND NAME

he first settlement on the territory of contemporary Rakovica was mentioned in the Ottoman population census of 1560 as a village called Vlaha. According to local folklore, the place got its name after the crayfish (Serbian: rak, rakovica), which allegedly inhabited the Rakovički stream which ran through the village. The first written mention of the monastery, already under the name of Rakovica, was from the 17th century. The village gradually turned into a suburb and then a neighbourhood of Belgrade and is now one of the most heavily industrialised areas of the Serbian capital. According to the 1981 census, the local community of Rakovica had a population of 17,871 – about a fifth of the municipality’s total population. However, the local community was later split into several smaller ones and those strictly comprising the area of the neighbourhood of Rakovica had a population of 9,901 in 2002.

RAKOVICA

DUSTRIALISED AREA (tractors and other agricultural vehicles factory), Frigostroj (coolers and air conditioners factory), IMP (foundry), MESSER Tehnogas (producer of gases), etc. Many of these factories suffered badly during the transition process, while another industrialised area of the municipality is the neighbourhood of Kijevo, with the quarry which supplies Belgrade’s entire building industry with stone and slate. Remaining industrial capacities lie mainly in construction and building (construction companies and cement plants Komgrap,

Graditelj, etc). Rakovica is located on important transport routes. The valley of Rakovički

way. It is also traversed by the BelgradePožarevac railway, while Topčiderka Valley links the area to the Belgrade-Niš railway. Other important roads in the municipality are Patrijarha Dimitrija Street, which goes through the middle of the urbanised area, and the Ibarska regional road, which passes the western edge of the municipality. Belgrade University’s Faculty for Organisational Sciences (FON) is located in Rakovica, as is the Machinery educational centre and the Institute for engines (MOC).

The neighbourhood of Kijevo is home to the quarry which supplies Belgrade’s entire building industry with stone and slate stream provides a route for the existing outer ring road of Belgrade and a future section of the projected Belgrade belt-

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SAVSKI VENAC

SAVA AMPHITHEATRE: TOMISLAV ĐORĐEVIĆ, PRESIDENT OF THE MUNICIPALITY OF SAVSKI VENAC : “In collaboration with Italians and Swedes, we are setting up business incubators and business centres. We have already been granted €120,000 from the EU funds for the development of incubators that engage in energy saving and renewable energy sources.” CONTACT: TOMISLAV ĐORĐEVIĆ, PRESIDENT OF THE MUNICIPALITY / Kneza Milođa 99, 11000 Belgrade; +381(0)11/3615-389; +381(0)11/3615-394; www. savskivenac.org; djordjevic@savskivenac.org.rs; English

By Tatjana OSTOJIĆ lthough Savski Venac is a Belgrade municipality, according to its president, Tomislav Đorđević, it differs quite a lot from its counterparts. “A section of the Mint, the Belgrade Fair, hospitals, the government, the army, police, universities, rivers, transport – this is all that Savski Venac has and this is what makes it the epicentre of metropolitan municipalities. Moreover, if we consider the activities that we engage in, we have, in a way, surpassed the other 17 municipalities,” claims our interlocutor.

What potential does this municipality have? A couple of years ago we took part in the Venice Biennale with a project simply entitled ‘Belgrade’. This project (alternatively known as ‘The City on the Water’) actually pertains to the Sava Amphitheatre that encompasses not only Savski Venac, but also the riverbanks of New Belgrade. We are talking about 80 hectares of land that have unbelievable potential. Back in 1960, the Millennium Group wrote technical documentation for this project, which also envisaged a river taxi. Our proposal was to give away a concession for only $1 and this is what we presented to the Serbian Chamber of Commerce after the Venice Biennale. When we did a cost beneﬁt study, we came to the conclusion that this project would be beneﬁcial to the whole of Serbia. We really want to promote this project, since only two other cities in Europe – Amsterdam and Istanbul – have such potential. We are talking about 52 / The Investors Guide - Belgrade 2009/2010

a ‘new’ 80,000 square metres of land and new roads, with a plan to build three new bridges. The project entails constructing an artiﬁcial island close to New Belgrade that will not impede river transport. This will be a city within a city and is where the potential of the Municipality of Savski Venac lies. The municipality has substantial real estate at its disposal – from Branko’s Bridge to Zeleni Venac – and we

By the end of this year we will be launching a tender for leasing construction plots. have started to lease our premises, which will change the landscape. The Dutch Culture Centre, i.e. their debate club, rented an old hangar which, in the past, was occupied by Centrotekstil. Right beside that we leased premises over a period of 15 and 30 years to investors that are building a four-star hotel. We have also concluded a contract with the Italian region of Venetto and, in December, are going to sign

a similar contract with the region of Umbria and the City of Perugia. They are going to invest in Savski Venac and will be given their own premises. City authorities recently granted 1.8 million dinars to the municipality to be spent on reconstructing a baroque front of the building that used to house the ﬁrst bank. This will be a completely different space that will include a restaurant, jazz and debate clubs. The premises will become truly international, occupied by young people and brimming with fresh potential. There is also a small painting colony just below Branko’s Bridge. Business incubators are also going to set up in Savski Venac soon. Savski Venac is one of the most educated municipalities in Serbia, so to speak, and – along with the municipalities of Stari Grad and Vračar – is, unfortunately, also the oldest municipality in terms of the ages of residents. It is true that the most babies are born here, but they don’t all come from Savski Venac. The average age of an ordinary citizen in our municipality is 45, so it is very important for young people living here to get their chance. In collaboration with Italians and Swedes,

TOURIST POTENTIAL

“I

t is certainly worth mentioning the tourist potential, primarily investments in tourism. The first investment is a summer stage in Topčider and a stage just below 25th May Museum. Then there is a memorial complex and the house of King Petar. These are projects that the municipality is currently developing. Isidora Sekulić endowed her wealth to the Municipality of Savski Venac and we are going to mark Isidora’s favourite places in Belgrade. This project is called ‘In Isidora’s Footsteps’”.

SAVSKI VENAC

IDEAL FOR INVESTORS

we are setting up business incubators and business centres. We have already been granted €120,000 from the EU funds for the development of incubators that engage in energy saving and renewable energy sources. Young people with a university degree and good ideas should apply. A special committee from the Faculty of Tech-

nology will decide which idea is the best. The municipality will provide premises at 47 Kneza Miloša Street and bookkeeping services and, in the following two to three years, we will pay all expenses. After this period, the company that won the competition will have to reimburse us with these costs, while in year four new young people will come with new ideas. This is just one way to keep our youngsters here. Company Plaza is planning to build a hotel on the site of the building currently housing the defunct Federal Interior Ministry. Yes, unfortunately. This building was designed by former German prisoners of war and their engineers in the period from 1948 to 1950. The building was constructed to reﬂect academic spirit. However,

the project that Plaza presented to us is a large, unimpressive facility; a totally inappropriate glass building of the kind that you can ﬁnd anywhere else in the world. The only thing that they are concerned about is how many square metres the hotel will have, but this is not only about square metres. Since this is a monolithic build-

we are going to have four to ﬁve tennis courts, jogging lanes, mini-soccer pitches, basketball courts and several other sporting grounds. By the end of this year we will also launch a tender for leasing construction plots. These are the locations that bring the highest urban rent, such as Tolstojeva, Temišvarska and Drinička streets,

At this moment we are constructing a sports village covering almost one hectare of land… ing, it would be much better if we restored it. However, the municipality cannot decide what is appropriate. Aside from that, there is no city architect that can give his opinion. What other plans does Savski Venac have? At this moment we are constructing a sports village covering almost one hectare of land just below Deligradska Street, between the Interna B Health Clinic and the Faculty of Veterinary Medicine. We are also building a small river island, which we are doing for free, so to speak. Just like we built a ﬁtness club in Hajd Park,

as well as other streets in Dedinje and Senjak. The Italian Culture Centre is also a fruit of our labour. This is a gift from Italy to the Municipality of Savski Venac and, in conjunction with the Faculty of Architecture and the National Bank of Serbia, we are going to erect a huge artefact on Slavija. The municipality also plans to invest further, but we need help in doing that. Certain institutions have promised us ﬁnancial assistance so that we can build a lift platform for the emergency room, in order for doctors to be able to reach the ER via car, near the OBGYN Clinic. The Ministry of Health will give its support to this project. Belgrade 2009/2010 - The Investors Guide / 53

INTERVIEW

GORDANA DOSTANIĆ, DIRECTOR OF THE BELGRADE STOCK EXCHANGE

SERBIA: MARGIN “Investors find companies with a high level of capitalisation, good revenue, solid market position, practical implementation of high standards of corporate management and quality relations with shareholders as the most attractive for investing.”

By Ana STOJANOVIĆ Photo Časlav VUKOJIČIĆ

t wasn’t so long ago that Gordana Dostanić announced that the Belgrade Stock Exchange’s turnover had fallen by 71% in the first nine months of this year, to 17.8 billion dinars or around 189.4 million euros. At the end of October, the participation foreign investors’ in overall trading was 36% and 41% in trading in securities, with 37% of them engaged in buying and 45% in selling securities. This is the topic of our conversa-

54 / The Investors Guide - Belgrade 2009/2010

The influence that any strategic partner exerts on the Belgrade Stock Exchange could be deemed as positive if more new investors, with long-term investing plans, follow

tion with Gordana Dostanić, Director of the Belgrade Stock Exchange. When do you expect foreign investors to return to the Belgrade Stock Exchange in the numbers recorded in 2008? Price tendencies, as well as general solvency of the Belgrade Stock Exchange market undoubtedly depends on foreign institutional investors who, historically speaking, always made over a half of the total turnover. Their participation in buying or selling securities is setting trends on

INTERVIEW

AL MARKET domestic markets, as well as determining how much the market will grow or decline and creating a climate in which domestic retail investors operate. Still, we should bear in mind that global capital market tendencies are something that greatly determines the way in which foreign investors behave. At the time when the most developed markets are utilizing growth potentials, the preference for risk is growing and there is a spillover of available funds to emerging markets, followed by closer monitoring of what is going on the marginal markets. This means that investors are ready to expose themselves to significant risks that trading on such markets brings. Since Serbia is considered a marginal market, and providing that positive tendencies from the last quarter continue, next year we will probably see more foreign investors trading here. Certainly, we should bear in mind that when things go downhill, the first markets that these investors leave are the marginal ones, which is what we witnessed last year and in the first half of this year.

What can the Belgrade Stock Exchange do to attract foreign investors? Do you have new IPOs in the pipeline? The role that the stock exchange plays in attracting investors mostly boils down to implementation of the relevant regulation which enables foreign investors to participate in trading on the stock exchange, and which are in accordance with widely accepted standards relating to re-

TENDENCIES

f we are talking about next year’s stock exchange market, that is an equation with many unknowns. The next year’s stock exchange tendencies will depend on the implementation of new legislation, big domestic companies getting involved in trading, as well as global developments.

vealing the prices, technological reliability, safety of transactions and prevention of rogue trading, as well as supervision of corporate management of the companies that float their shares. On the other hand, the stock exchange, as the organizing force on the market, cannot create quality if the companies that trade on the exchange don’t possess that quality. Investors find companies with a high level of capitalization, good revenue, solid market position, practical implementation of high standards of corporate management and quality relations with shareholders as the most attractive for investing. The foreign investors’ presence also depends on the overall risk associated with an individual country, relevant legislation that regulates financial markets and similar. One of the reasons why our market hasn’t developed fully as yet is the lack of IPOs which is a direct result of uncoordinated legislation and absence of a clearly defined role and development strategy for the capital market. What are the biggest challenges that foreign investors are faced with? If we set aside the problems not direclty associated with the capital market, the main challenges on the domestic market are low solvency and inadequate corporate management of the companies that are floating their shares on the Belgrade Stock Exchange. Out of 1,800 companies that are trading on the Prime and Standard markets, only five undertook to provide regular and timely information to the investment public and this speaks volumes about the crucial problem that foreign investors face.

Do you think that solvency will grow if the Belgrade Stock Exchange is sold to the Vienna Stock Exchange? The ﬂuctuation of prices on the Belgrade Stock Exchange in the past two and a half years clearly shows that solvency

If positive tendencies from the last quarter continue, next year we will probably see more foreign investors trading here has played a major part in a huge growth and later in a dramatic fall which put the Belgrade Stock Exchange in jeopardy due to investors loosing their conﬁdence in the stock exchange. The main features of insolvent securities are a high price volatility, as well as the fact that transactions cannot be excecuted in a desired number and time, which increases investment risks on marginal markets. Investors who are ready to invest in insolvent securities want high dividend yields that could be even considered speculative. Although guesstimating is desirable to a certain extent, the mechanism that encourage this behaviour lead to the market becoming permanently dependant on speculations and short-term investing with less money actually being invested which, in turn, deters institutional investors and reduces solvency. The influence that any strategic partner exerts on the Belgrade Stock Exchange could be deemed as positive if more new investors, with long-term investing plans, follow. This improves post-trading activities and opens up new communication channels that facilitate the process of capital collection. Belgrade 2009/2010 - The Investors Guide / 55

STOCK EXCHANGE

RESUSCITATING THE MARKET

Although total turnover in the first nine months of this year was almost 70% lower compared to the same period last year, the drop in turnover in the third quarter of 2009 is somewhat lower than in the first half of this year.

Belgrade STOCK EXCHANGE he overall situation on global stock exchange markets has been far more positive in the last few months than was the case in mid-2008 and Q1 2009, when the negative influence on market tendencies, due to the economic downturn, was at its strongest. The market was resuscitated mostly due to investors becoming more relaxed after seeing the first positive effects of the anti-crisis measures devised by governments all over the world. Positive tendencies on the most developed markets spilled over to so-called marginal markets, including the Belgrade Stock Exchange. Although the total turnover in the first nine months of this year has close to 70% lower in comparison to the same period last year, in the Q3 of 2009, the turnover decline is somewhat lesser than in the first half of this year. In September, the month-

56 / The Investors Guide - Belgrade 2009/2010

ly turnover exceeded 2 billion dinars, with the evident increase in the average daily turnover and trading in securities in comparison to the previous period. Following an exceptionally negative period for the stock exchange indices, which started in March this year, we can see that, in the last six months, both stock exchange indices have grown quite a lot. The BELEX 15 grew by over 116%, while the BELEXline index went up by 83%. Foreign investors were quite important contributing factor to the domestic security market coming back to life. These investors view the current prices on the Belgrade Stock Exchange as favourable for entering the market, which, in turn, leads indices growing, turnover thriving and domestic investors becoming more relaxed since they often devise their strategies in accordance with the way foreign investors behave. In the nine months of this year, the average participation of foreign investors in the overall trading on the stock exchange was just over 1/3 of the total turnover, which, in comparison to the same period last year, is a 10% reduction. In August and September, we could see the foreign investors’ participation in trading in securities growing to over 40%. If we take a look a period since the beginning of this year to the end of September, the foreign investors were more engaged

in selling securities, while in the period between April to the beginning of September, they were more active on buying side. Table 1: Participation of foreign investors in 2009.

FIS

total b-FIS s-FIS

43.96% 43.91% 44.02% 9.37% 35.73%

FIB FIT

FIT – foreign investors’ participation in total turnover FIS - foreign investors’ participation in trading in securities b-FIS - foreign investors’ participation inacquiring securities s-FIS - foreign investors’ participation in selling securities FIB - foreign investors’ participation in trading in bonds Table 2: Foreign investors’ participation per year.

2005 2006 2007 2008 Jan – Sep 2009

FIB 13.37% 11.39% 14.39% 12.53%

FIS 51.18% 54.61% 42.04% 50.11%

FIT 42.58% 47.99% 39.25% 47.31%

9.37%

43.96%

35.73%

Belgrade offers very comfortable conditions for successfully conducting business

here is a saying that says “Belgrade is the World”. Although this saying was popular a decade ago, it perfectly describes our capital city as it is today. It is also said that “Belgrade has a soul”, which is the secret behind this historical city attracting a great deal of attention all over the world – whether we are talking about tourists or business people - regardless of the problems the city has been facing. It is also worth mentioning Belgrade’s geographical position, its infrastructure, population and economic potential, which make it one of the most attractive business locations in this part of Europe.

“However, words are just words and experience matters the most. All in all, I wish you a very warm welcome to Belgrade” Belgrade is where some of the biggest Greenfield investments in the region have been made. With companies like Telenor, Moblikom Austria, Ball Packaging and Merkator representing just a few of the companies that have invested here and there are many, many more. On the other hand, the hospitality, catering and professional business etiquette of the people who live and work in Belgrade is something that you won’t find anywhere else in the world.

COMMENT

Welcome to Belgrade!

The experience that we, as the Serbian Investment and Export Promotion Agency, have had shows that from the very moment we attracted investors’ attention and brought them to Belgrade, they began to change their opinion about the overall situation, which is heavily burdened by the difficult and often unattractive history of the Balkan region. By getting to know Serbia’s customs and multi-cultural tradition, the gap between our culture and that of any investor is quite easily bridged. Investors need to be stimulated and presented with every single opportunity that our country offers in order for them to decide to invest in Serbia. All of the aforementioned simply proves that Belgrade has been evolving into one of the most attractive capital cities in this part of Europe. With its extensive road network, high speed telecommunication connections and abundance of business premises, Belgrade offers very comfortable conditions for successfully conducting business. Since the turn of the millennium, over €5 billion of foreign direct investments have been made in the Serbian capital city, primarily in the service sector. Belgrade is also the recipient of the City of the Future of Southern Europe Award, which was given by a renowned FDI Magazine published by the Financial Times.

Vesna Perić, director of SIEPA

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SOPOT

GOOD NETWORK OF ŽIVORAD MILOSAVLJEVIĆ, PRESIDENT OF THE MUNICIPALITY OF SOPOT: Beautiful nature, a pleasant climate, diversity of tourist locations, good transport and geographical position all make the Municipality of Sopot a real haven of pleasure just outside Belgrade. CONTACT: ŽIVORAD MILOSAVLJEVIĆ / Kosmajski trg 5, 11450 Sopot; +381 (0)11/8251-155; www.sopot.org.rs; predsednik@sopot.org.rs;

By Ana STOJANOVIĆ One of the 17 Belgrade municipalities, Sopot lies just south of Belgrade proper in the northern part of the gently undulating region of Šumdija. The municipality covers 27,094 hectares of land and borders the municipalities of Mladenovac, Lazarevac, Voždovac, Grocka, Aranđelovac and Barajevo. According to the 2002 census, the municipality has 20,390 inhabitants. The municipality’s ﬁrst mention in historical books was in 1818, when it was noted on the Langer map as Sopot-Bach. However, Sopot’s history actually began in 1823 with the construction of a “mehana” (restaurant) in Ropočevo. Sopot is also mentioned in the royal charter and in 1893 was declared a town. In October 1905 the town of Sopot became a municipality, as veriﬁed by the Parliament of the Kingdom of Serbia and King Petar Karađorđević I. During World War I, Sopot was the centre of a canton comprising another 25 other municipalities. Sopot was granted its current admin-

istrative status in 1961 and the municipality has been a part of Belgrade since 1967. The municipality of Sopot is made up of 16 local communities: Mali Požarevac, Parcani, Ralja, Popović, Stojnik, Sibnica, Rogača, Drlupa, Dučina, Babe, Mala Ivanča, Đurinci, Nemenikuće, Slatina, Guberevac and Sopot. Beautiful nature, a pleasant climate, diversity of tourist locations, good trans-

English

network of roads and is easily accessible from all directions. The fastest way to get there is to take the Belgrade – Mali Požarevac – Sopot motorway, the road from Kragujevac via Mount Avala, from Barajevo via Guberevci and Babe, from Lazarevac via the Vreoci-Mirosaljci-Sibnica road, from Aranđelovac through the Venčani-Sibnica-Ranilovići-Rogača road, from Mladenovac via Kosmaj or from Kragujevac via Đurinci or Nemenikuća.

Our good network of roads is beneficial to the development of tourism services port and geographical position all make the Municipality of Sopot a real haven of pleasure just outside Belgrade. It has no large industrial facilities, with just a few medium-sized enterprises that are environmentally conscious. This all contributes to Sopot becoming an environmentally clean and protected area with favourable wind potential. Sopot has a well organised, broad

GEOGRAPHICAL POSITION Sopot is around 50 kilometres south of the capital of Serbia. It covers an area of 27,079 hectares and the municipality borders Mladenovac, Lazarevac, Voždovac, Grocka, Aranđelovac and Barajevo. AGRICULTURE The biggest individual agricultural producer in Sopot is PKB Sopot, a cooperative that has branches in Ralja, Stojnik, Dučina, Drlupa, Rogača, and Guberevac. PKB Sopot co-operates

INDUSTRIAL ZONE SOPOT Over the past decade, over 60 industrial facilities have been built in Sopot and this construction activity is continuing in the industrial zone located between Sopot’s small river (Sopočica) and the Sopot-Đurince road (from Sopot to the Đurinci military barracks). The zone stretches across 15 hectares and has several business facilities occupied by artisans, caterers, shop owners etc. Among the companies operating in the industrial zones are Metalika, Prometal, MOS, Dijamant mineral, Grafocard, REX kafa etc.

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SOPOT

ROADS with over 3,500 households. It also buys between 1,200 and 1,300 litres of milk a day from four villages. Livestock breeding is quite developed, with around 3,000 head of cattle, 12,650 pigs, over 7,000 sheep and 60,000 hens. The average wheat yield is 10,000 tonnes and the maize yield is in the region of 20,000 tonnes. Also, 8,000 tonnes of various fruit is picked each year. The municipality also boasts the Kosmaj fruit farm, which used to grow fruit on over 1,266 hectares of land. Today there are only 400 hectares of orchards, with most of the land having been returned to its original owners. Nevertheless, Kosmaj still produces around 300 trucks of high quality fruit annually. In 1982, PKB Komerc’s branch Kooperativa built a plum dryer in Dučina, with a daily capacity of 100 to 200 tonnes, but this facility has been closed for several years. Agriculture plays and important role in Serbia’s national revenue and the same can be said of Sopot. In the near future it is expected that agriculture will develop further and focus on the Belgrade market and organic production. TOURISM Stunning countryside, a good climate and attractive tourist spots like Trešnja, Kosmaj and the Guberevačka Forest, as well as almost the entire Sopot area, are ideal for sightseeing, recreational, hunting, sports and health tourism. All of the aforementioned locations are very close to Belgrade (28 to 54 kilometres). The Trešnja locality is at the centre of a tranquil area complete with an artificial lake 160 metres long and 25 metres wide. Guberevačka Forest is a dense forest, abundant in game, with a distinct feel of old Šumadija. It is considered local-

Kosmaj

Agricultural production plays an important role in the economy ly as a very important area that must be preserved as a valuable national park. The whole area is full of historical monuments and artefacts dating back to the time when the Romans resided here. Kosmaj (altitude 626 metres) is the biggest, most attractive and most important geo-morphological locality in the Sopot area. Kosmaj is also full of game, which is important for hunting tourism (hare, deer, pheasant, grey partridge, fox and quail. Once upon a time there were even wolves). TRANSPORT & TELECOMMUNICATION A good network of roads is beneficial to the development of tourist serv-

ices. The fastest way to get to Sopot from Belgrade is to take the Belgrade – Mali Požarevac – Sopot motorway, the road from Kragujevac via Mount Avala, from Barajevo via Guberevci and Babe, from Lazarevac via the Vreoci-Mirosaljci-Sibnica road, from Aranđelovac through the VenčaniSibnica-Ranilovići-Rogača road, from Mladenovac via Kosmaj and Koraćica or from Kragujevac via Đurinci or Nemenikuća. Two rail tracks pass through the municipality: Belgrade - Lapovo - Niš and Belgrade - Mala Krsna, with a detour for Lapovo – Niš and Smederevo, as well as Požarevac – Majdanpek in the direction of Bor and Zaječar. Belgrade 2009/2010 - The Investors Guide / 59

STARI GRAD

HEART OF THE CITY MIRJANA BOŽIDAREVIĆ, PRESIDENT OF THE MUNICIPALITY OF STARI GRAD: Stari Grad’s Danube riverside has two distinct artificial bays: the small marina (Marina Dorćol) and the Port of Belgrade. CONTACT: MIRJANA BOŽIDAREVIĆ / Makedonska 42, 11000 Belgrade; +381 (0)11/32-20-721; www.starigrad.rs; English

By Ana STOJANOVIĆ tari Grad (Old City) is an urban district of Belgrade and one of the 17 municipalities which constitute the the capital of Serbia. It encompasses some of the oldest sections of urban Belgrade, hence the name. Stari Grad Municipality covers an area of just seven square kilometres (2.7 sq mi) (the second smallest municipality in Belgrade, after Vračar) and borders the municipalities of Paliula to the east, Vračar to the southeast and Savski Venac to the south. The River Sava is the municipality’s natural border with New Belgrade to the west, while the Danube forms the border with the municipalities of Zemun (north-west) and the Banat section of Palilula. The Danube riverside has two distinct artiﬁcial bays in Stari Grad: the small marina (Marina Dorćol) and the Port of Belgrade.

Stari Grad’s GDP per capita is six to eight times higher than the Serbian average

are much more densely populated compared to Vračar, the sister municipality is more densely populated, because almost a third of Stari Grad’s territory – even though it is in the “heart” of Belgrade – is uninhabited (the large park of Kalemegdan and the highly industrialised Danube riverside, with dozens of factories, spacious warehouses and depots cover a lot of the municipality’s area). Nevertheless, the fact that a signiﬁcant number of people work in the municipality means the population almost doubles during the day – making it possible for the Municipality of Stari Grad to achieve GDP per capita that is six to eight times higher than the Serbian average.

census, which equates to 7,935 inhabitants per square kilometre (20,551.6/sq mi), compared to a population of 96,517 with a density of 13,788 inhabitants per square kilometre (35,710.8/sq mi) back in 1971. Even though residential areas

HISTORY Some of the oldest sections of Belgrade belong to Stari Grad, but the municipality itself was still among the last urban municipalities to become an administrative unit. It was formed by the merger of

POPULATION Like the other two “old” municipalities in central Belgrade (Savski Venac and Vračar), Stari Grad’s population has been declining for decades. However, as a central municipality covering a small area, it remains one of the most densely populated municipalities in Serbia. There were 55,543 inhabitants according to the 2002

KOSANČIĆEV VENAC

ne of the few preserved old parts of the town is Kosančićev venac which is located in the southwest of Old Belgrade on a mound facing the Sava River. Back in the middle ages, a Serbian settlement began to develop here with its own church and graveyard. At the beginning of the 19th century this part became the heart of the town from and around which the wider area of Belgrade grew. Today only a few buildings and other features remain which preserve the spirit of old Belgrade. Kosančićev venac, with its cobblestone street, courtyards and buildings snuggling amongst the concrete edifices of a newer age, has preserved a part of the long-gone atmosphere. For this reason it is often used as a location for historical films. In it are the Rectorate of the University of Arts in Belgrade, the Commercial Gallery of Belgrade (“Prodajna galerija “Beograd”), as well as the remains of what was once the National Library, which was demolished in the air-raids of 6th April 1941.

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STARI GRAD

Skadarlija

the municipality of Skadarlija and part of the municipality of Terazije on 1st January 1957. Since the municipality is located in the heart of so-called ‘old Belgrade’ it reﬂects – historically, culturally, architecturally and economically – the two-millennium long history, urban and economic development of Belgrade. Stari Grad covers an area of 473 hectares, has 215 hectares of water surface and, as such, is considered one of the smallest of Belgrade’s municipalities. The municipality’s borders were set in 1961 and it was given its current name in 1955. Today, Stari Grad has close to 56,000 inhabitants (55,543 to be precise) living in over 24,000 households. It also has more employees than population, but the difference between the two is now much smaller than in the past. Around 27% of the population is over 60 years of age and about the same percentage possess a university diploma.

Stari Grad is home to the biggest and most important part of Belgrade’s architectural, cultural and historic heritage Stari Grad is home to the biggest and most important part of Belgrade’s architectural, cultural and historic heritage. Close to 200 buildings, spatial entities, monuments and memorial parks are protected by the city. The Belgrade Fortress, Kapetan Miša building, Grand Duchess Ljubica’s Sleeping Quarters, Saborna Cathedral Church and Knez Mihailova Street are all considered cultural heritage sites of exceptional importance, as are another 20 buildings and Kosančićev venac. The Belgrade Fortress, Kalemegdan Park, the Botanical Gardens, Jevremovac and Skadarlija – a former bohemian retreat of the biggest Serbian writers, painters, theatre actors and other artists

– are the most attractive tourist destinations in Belgrade today. The central position and important cultural and historic heritage of Stari Grad make this municipality an extremely attractive place for many businesses, particularly those dealing in trade and banking. There are quite a few state and city administrative and public institutions in Stari Grad. Many businesses, culture and civil associations have their headquarters here. The municipality is also home to 13 faculties, the Belgrade University Rectorate, the Serbian Academy of Science and the Arts, ten high schools and eight primary schools; six theatres and twenty or so cultural institutions. Belgrade 2009/2010 - The Investors Guide / 61

SURČIN

BELGRADE’S YOUNG VOJISLAV JANOŠEVIĆ, PRESIDENT OF THE MUNICIPALITY: The River Sava meanders through the municipality of Surčin for about 40 kilometres. Currently, several piers are being constructed that will be suitable for both marine and land tourism, as well rural and eco-tourism. CONTACT: VOJISLAV JANOŠEVIĆ / Vojvođanska 79, 11 271 Surčin; +381(0)11/8443-272; +381(0) 11/ 8443-773; www.surcin.org.rs; opstina@surcin.net; English

By Ana STOJANOVIĆ ying southwest of Belgrade and bordered by the Belgrade – Zagreb motorway and the River Sava is the youngest Belgrade municipality. It stretches across an area of 220 km² and consists of seven villages with around 55,000 inhabitants. A total of 30 km of the Obrenovac and Zagreb motorways run through the municipality. There are seven forests covering an area of 3,200 km. The River Sava meanders through the municipality of Surčin for about 40 kilometres. Currently, several piers are being constructed that will be suitable for both marine and land tourism, as well rural and eco-tourism. Nikola Tesla International Airport is also located on the territory of the Municipality of Surčin, while the municipality has 18,000 hectares of agricultural land and 200 hectares of fish farms. The municipal settlements have a very long history, with proof of human inhabitants many millions of years ago to be found at several locations in Vinča. In addition to material evidence from the Neolithic period, there are other traces of the numerous settlements from different periods of human civilisation. This area is beside the banks of the Sava. It is abundant in forests and fertile plains and has important sacral architecture. Certainly the most signiﬁcant sacral building is the Fenek monastery, which dates back to the 15th century and has great cultural and historical importance. The churches in the municipality date mainly from the

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18th century and represent different confessions. The Municipality of Surčin comprises

The churches in the municipality date mainly from the 18th century and belong to different confessions the villages of Surčin, Prograr, Jakovo, Bečmen, Dobanovci, Boljevci and Petrovčić. The administrative and commercial centre of the Municipality of Surčin is just 16 km from downtown Bel-

grade. This area boasts archaeological artefacts dating back to the early Stone Age, as well as the Iron Age. The church in Surčin was built in the period from 1788 to 1812 and is dedicated to the Venerable Paraskeva or St. Petka. The active working population, with agricultural farming being the most popular economic branch, is mainly employed in Belgrade at facilities like Nikola Tesla Airport, PK Beograd, the Surčin Baking Industry, Centroprom and numerous agricultural, trade and commercial ﬁrms. A total of 22,000 of Surčin’s inhabitants are employed. The village of Progar is 18 kilometres from Surčin and 34 kilometres from Belgrade. It is located on the River Sava, 45 kilometres upstream from Belgrade. With

DOBANOVCI

he Village of Dobanovci is located near Nikola Tesla Airport along the Belgrade-Zagreb motorway and is six kilometres west of Surčin and 16 km from Belgrade. The local population is mostly engaged in farming, though several industrial buildings have been built in recent years, especially near the highway and airport. Dobanovci has 9,000 inhabitants.

SURČIN

EST MUNICIPALITY its rich vegetation and preserved countryside, this village is one of the greatest tourist potentials in the municipality. There is also the Jarčina canal, which passes near the Village of Jarak and is 50 kilometres long. The canal joins the Sava near Progar. The Živača river lake is located near Progar, while its water level is regulated via the Vok canal. The villages are surrounded by a large area of forestland, including the woods of Bojčin, Crni Lug and Jasenska. They cover a combined total of 2,200 hectares. In addition to wood used in industry and as fuel, forests are also used for cattle breeding. As of late, the Bojčin Forest has been equipped with tourist and catering facilities, while there is an event called the Petrovdan Fijakerijada, held in July, and the Equestrian Marathon in September. The church in Progar was built in 1799 and is dedicated to the Archangel Gabriel. The population of Progar is mostly employed in PK Belgrade, while they are also active in forestry, hunting and ﬁshing. However, most of the inhabitants are farmers. The village’s population is 2,000. Jakovo is six kilometres from Surčin and 22 km from downtown Belgrade. This old Srem village is known for archaeological excavations that indicate that the village was populated in ancient times. Near the village is the only monastery in south Srem – the Fenek Monastery from the 15th century, which is also dedicated St. Petka. The church in Jakovo is dedicated to the Ascension of the Lord. Most of the population is engaged in agricultural processing and the population of Jakovo has grown in recent years, due to new industries such as trade, catering, tourism etc. Jakovo has 7,500 inhabitants. Bečmen is located to the southwest of Surčin (four km) and is 22 km from Belgrade. The prevailing economic branch

Country side

The Municipality of Surčin comprises the villages of Surčin, Prograr, Jakovo, Bečmen, Dobanovci, Boljevci and Petrovčić. is agricultural production, mainly individual rural households. Bečmen has numerous forests and aquatic areas, including the Gibavac Forest and Bečmen Lake - a ﬁsherman’s paradise. There are several industrial facilities in the village that are crucial to its economic development. Bečmen village has about 6,000 inhabitants. The ancient village of Boljevci is 13 km from Surčin and 29 km from Belgrade. It is situated on the left bank of the River Sava and is known for its good geographical location. Agriculture is the main economic activity here, along with

ﬁshing (the Živača ﬁsh farm). The area is suitable for tourism, since it has outstandingly beautiful waters and forests. Boljevci has 5,000 inhabitants, with an ethnic Slovakian minority. There is an Eastern Orthodox Church of St. Petka and a Slovakian church. Petrovčić is a little village in Srem that borders Pećinci. It is 10 km from Surčin and 26 km from Belgrade. The total surface of Petrovčić is 1,974 ha, of which the largest part is arable land, with meadows, pastures and forests. The population (2,500) is mainly engaged in agriculture. Belgrade 2009/2010 - The Investors Guide / 63

VOŽDOVAC

BELGRADE’S SOUTH BRANKO ARSENIJEVIĆ, PRESIDENT OF INTERIM AUTHORITY MUNICIPALITY: “Beautiful countryside and tourist potential – the most important tourism potential in Voždovac is represented by Mount Avala, home to the Monument to the Unknown Hero” CONTACT: BRANKO ARSENIJEVIĆ, PRESIDENT OF INTERIM AUTHORITY MUNICIPALITY / Ustanička 53, 11 000 Belgrade; +381(0)11/2440-403, 2443-159; +381(0)11/2457552; www.vozdovac.rs; predsednik@vozdovac.rs; English

By Ana STOJANOVIC ne of the incentive initiatives for SME development in Voždovac was the establishment of the Office for the Entrepreneurship Development and Assistance to the SME Sector in the Municipality of Voždova – the implementation of which is being financed by the Italian Foreign Ministry and the Region of Tuscany. Mention the south gate of Belgrade and the ﬁrst association will be Voždovac, a Belgrade municipality that’s home to 152,000 Belgraders and covers an areas of 15,000 hectares. It is comprised of two entities: an urban area that’s a combination of old zones, such as Lekino brdo and Dušanovac, and contemporary residential ones; a suburban area located along the old road to Kragujevac. New residential zones have been built in the southern part of Voždovac – these include Šumice, Konjarnik, Medaković and Braće Jerković, known for their parks, green areas, children’s playgrounds and outdoor facilities. Residential construction was in a full swing in the period between 1969 and 1974, which was when the Braće Jerković quarter came into existence, as well as the Medaković quarter towards the city’s main airport. At the beginning of the 1980s, a residential quarter called Banjica was built along the Avala road, while

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in the last two to three years, quite a few streets and the water supply system were reconstructed, in addition to many sports facilities and children playgrounds being built. Roads in the suburban areas were paved, with a lot of money invested in Voždovac’s infrastructure. Plans envisage the construction of commercial and business premises in Banjica, as well as in

The Municipality of Voždovac has 9,518 hectares of agricultural land at its disposal Kumodraž II, Medaković II, Šumice and Braća Jerković. The Dušanovački Plateau is completed, as are construction works on Vojvode Stepe Street, which now resembles a proper boulevard. The municipal authorities are doing

their utmost to preserve old Voždovac and the way it has looked for many years, but also to modernise and advance it as much as possible. ADVANTAGES OF VOŽDOVAC Beautiful countryside and tourist potential – the most important tourism potential in Voždovac is represented by Mount Avala, home to the Monument to the Unknown Hero, Avala’s recently rebuilt TV Tower, the Čarapićev breast mountain lodge, the Šuplja Cave, Lake Trešnja, the Bela Reka Reservoir at Ripanj, as well as one between Pinosava and Resnik; the memorial park in Jajinci dedicated to the patriots killed during World War II and the house in Kumodraž where Duke Stepa was born. VOŽDOVAC ECONOMY In terms of the number of registered companies per sector, there are total of 1,235 ﬁrms (or 28.2%) engaged in retail trade

FACTS & FIGURES

he municipality of Voždovac covers 148 square kilometres. Of this, 9,381 hectares are agricultural land and 2,437 hectares are forestland. Voždovac’s population is 151,768, with a birth rate of 2.5‰ (in 2004) and 36 rural and urban settlements. In 2004 there were a total of 65 kilometres of roads, the number of employed citizens stood at 38,872, there were 20 primary schools with 12,468 pupils and six high schools with 6,168 pupils. The national structure is as follows: Serbs – 138,528 (91.28%), Montenegrins – 1,879 (1.24%), Yugoslavs – 1,740 (1.15%), Macedonians - 902 (0.59%), Roma - 820 (0.4%) and Croatians - 810 (0.53%). As can be noted as follows, the municipality’s main population boom occurred in the 1960s and ‘70s: 1961 population: 85,458; 1971: 134,206; 1981: 159,364; 1991: 156,373; 2002: 151,768 (data provided by the State Statistical Office).

VOŽDOVAC

GATE and vehicle repairs 1,120 companies (or 25,57%) in transport, storage and the communications sector; 608 (or 13.8%) in mining and the processing industry; 347 (or 7.9%) construction and construction related companies; 189 (4.3%) catering companies (hotels and restaurants); 19 (0.4%) rendering ﬁnancial services; 476 (10.8%) real estate and real estate related companies; 11 (or 0.3%) educational service providers; 132 (or 3.1%) engaged in social and health work, while 245 companies (or 5.6%) are engaged in miscellaneous branches. This is not a favourable branch structure, since the tertiary sector is fairly dominant and the production sector is underdeveloped. Retail trade prevails in the tertiary sector, as is the case in most Belgrade municipalities. A clearer picture of the municipality’s economy can be seen if we take a look at average salaries in Voždovac. In March 2005, the average salary was 26,309 dinars, while the average salary in production branches was somewhat lower – 24,857 dinars (in non-production branches it was 29,754 dinars). Compared to February of the same year, the nominal salary indices were as follows: total income: 100.05; salaries in production sector: 95.16; salaries in the nonproduction sector: 111.43. The situation is quite similar to that of other Belgrade municipalities, i.e. there is a large concentration of SMEs in retail and services, with a relatively low number of employees and modest capital. The Municipality of Voždovac has 9,518 hectares of agricultural land at its disposal, of which 8,735 hectares is arable land, 781 hectares are meadows, two hectares are swampland and there are no ﬁsh ponds. This data is relevant, because registered farms are also a form of ’small holding, as well as because more SMEs

The most important tourism potential in Voždovac is represented by Mount Avala, home to the Monument to the Unknown Hero, Avala’s recently rebuilt TV Tower etc. can get involved in the agriculture sector. Considering the size and structure of agricultural land, as well as Voždovac’s tourism potential, it is quite clear where business opportunities lie both for existing and new SMEs in the municipality. One of the incentive initiatives for SME development in Voždovac was the establishing of the Ofﬁce for the Entrepreneurship Development and Assistance to the SME Sector. The Ofﬁce was established as part of the aptly-named project ‘Supporting Local Economic Development in the Municipality of Voždovac’, which, in turn, is part of the larger SEENET Programme – ‘Local Authorities as Development Generators’.

The implementation of this project is being financed by the Italian Foreign Ministry and the Region of Tuscany. The office provides non-financial expert assistance to existing and potential SMEs and entrepreneurs. SMEs and entrepreneurs, as well as the Voždovac population, are free to use the services provided by this office, which offers business information, advice, education and consultancy services. Between 20th December 2005 and 11th May 2006, a total of 278 people turned to the office for advice. This testifies to how much entrepreneurs in Voždovac actually need timely information provided in a fast and transparent manner.

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VRAČAR

MOST APPEALING FOR RES BRANIMIR KUZMANOVIĆ, PRESIDENT OF VRAČAR MUNICIPALITY: “Construction works did not stop, but these are works that were given building permits last year.” CONTACT: BRANIMIR KUZMANOVIĆ, PRESIDENT OF THE MUNICIPALITY / Njegoševa 77, 11000 Belgrade +381(0)11/3081-432; +381(0)113081-445; www. vracar.rs; b.kuzmanovic@vracar.rs; English

By Tatjana OSTOJIĆ račar is an excellent location for investing in residential and business premises, as well as public garages. I think there is quite a lot of room to invest here, since a single parking place costs between €12,000 and €20,000. Vračar is Belgrade’s ﬁrst municipality to have adopted an environmental action plan. According to Municipal President Branimir Kuzmanović, the municipal authorities are very keen on environmental protection and are exerting quite a lot of efforts in that direction. “The most educated citizens of Serbia live in Vračar. And they are very interested in their environment. We, in the municipality, have recognised this and have been doing our utmost to utilise the environment in the best possible manner,“ notes our interlocutor.

Vračar is one of the most popular and most expensive locations for living. To what extent has the economic crisis altered that situation? Real estate prices in Vračar have reduced to a certain extent - as they have in other parts of the city. Undoubtedly, Vračar is the best place in Belgrade to live according to all surveys that have been conducted so far. The majority of Belgrade’s citizens would like to live in Vračar. This, of course, leads to higher real estate prices, which is why real estate in Vračar is expensive. We also have good schools and beautiful parks and are trying to introduce many contemporary elements such as the robotic bird to help children learn about the environment or, for example, ﬁtness parks. 66 / The Investors Guide - Belgrade 2009/2010

What is the current price of real estate in Vračar? In the grey zone, a square metre could cost anywhere between 1,500 and 2,800 euros. The price goes up by 300 to 400 euros if the housing unit is completed. Of course, the price depends on the quality of housing and the location. Has the economic crisis slowed the pace of construction in Vračar?

Vračar’s advantage lies in the fact that it is 100% urbanised Construction works did not stop, but these are works that were given building permits last year. According to the information at our disposal, fewer building permits have been issued this year. There are also fewer construction plans, but the construction work for which plans were made last year is continuing. We expect the pace of construction to slow down this autumn, winter and the coming spring. This, however, applies to

residential construction and not in the business sector. Two large investments are currently being prepared: construction of building premises in Kralja Milana Street and Oslobođenje Boulevard. I have to say that these works will start once certain property issues are resolved. When it comes to business premises, I think investors can get very good prices and I don’t believe that this kind of construction will cease in the way residential has. Residential construction depends on the purchasing power and loans that citizens can obtain, while business premises are more of a long-term investment that is quite proﬁtable in the long run. The municipality issues building permits for facilities that cover up to 800 square metres. How long does an investor have to wait to get these permits and other required documentation? If the investor has all required paperwork, it takes up to seven days. The problem lies in the fact that building a facility of up to 800 square metres requires permits from the city authorities, i.e. the Secretariat for Spatial Planning, and one has to wait for quite a long time to get these permits.

NEW PREMISES “Our plan is for the business premises located at the corner of Kralj Milan and Kralj Milutin streets to cover close to 10,000 square metres. Unfortunately, the municipality has no influence over construction of a facility that has over 800 square metres, nor the way the building facades will look. We have tried several times to suggest that architects give their opinion on whether these buildings are adapted to suit the surrounding area and whether building facades should be done differently. Sometimes our suggestions are taken on board, but sometimes they aren’t. Sadly, we have no influence over issuing building permits for the buildings of over 800 square metres that could change Vračar’s landscape forever.“

VRAČAR

IDENTIAL DEVELOPMENTS Vračar no longer has ‘municipality’ status. The title remains, but we can easily call ourselves a city community and not a city municipality, bearing in mind the authority we have. Although the title is still there, the municipality status that Vračar has had since 1960 (i.e. for 45 years) has been abolished. It is true that some things have changed in the meantime, but these changes are quite subtle and pertain to elementary schools and a couple of other minor issues. However, school board members are still being appointed by the city authorities and not the municipality. Belgrade’s municipalities cannot be classified as local selfgovernments, which is how they differ from other municipalities in Serbia. The Belgrade municipalities have their own way of fighting for their rights, considering their heritage from the time when they had municipality status. There were instances when the Ministry of State Administration and Local Self-Government even said that Belgrade’s municipalities are not units of local self-government, only for us later to receive a memo from them addressed to all local self-governments in Serbia. One of Vračar’s features is that it is the smallest municipality in the Balkans. We cover only three square kilometres and are completely urbanised. Vračar practically doesn’t have industrial zones, unlike other municipalities, which can be interesting to investors. The part of Vračar that is closer to downtown Belgrade was urbanised back in 1890. Scottish businessman Francis Mackenzie was the first person to parcel the land into plots and this is where the first streets with rectangular crossroads were built, to resemble those elsewhere in Europe. There is a plan to construct a five-storey building (with an additional two storeys and a loft) in Neimar, and that is a done deal. Everything is regulated in Vračar and we don’t have zones like Sava Mala in Savski Venac.

Building of Vračar Municipality

The city authorities need to understand that finding a parking place in downtown and in Vračar is a problem and that costs need to be reduced to a minimum What are your advantages compared to other municipalities in Belgrade? Vračar’s advantage lies in the fact that it is 100% urbanised. Vračar is an excellent location for investing in residential and business premises, as well as public garages. There are contemporary technologies used to construct garages with limited access but a large number of parking places both below and above ground. I think there is quite a lot of room to invest here, since a single parking place in Vračar costs between €12,000 and €20,000, depending on the technology and number of available places. Such an investment can be proﬁtable in the long run. In your opinion, what do the city’s authorities need to do in the following

period to attract more investors? Take garages for example. The city authorities need to understand that ﬁnding a parking place in downtown and in Vračar is a problem and that costs need to be reduced to a minimum. If somebody plans to invest in building a garage, he needs to pay quite high fees to the city and this could deter investors. An investor wants to dispose of his money in the way he pleases and generates the highest possible proﬁt from his investment. If the city authorities reduce the fees for constructing garages, or facilitate the procedure for obtaining building permits, we are going to attract more investors. In this way we would also solve the parking problem and the Belgrade Construction Land Directorate would gain between €100 and €200 per square metre. Belgrade 2009/2010 - The Investors Guide / 67

ZEMUN

EXCELLENT LOCATION BRANISLAV PROSTRAN, PRESIDENT OF THE MUNICIPALITY OF ZEMUN: “The economy of Zemun has been revived in recent years by many foreign companies that have opened their branches and representative offices here” CONTACT: ZORICA ĐURKOVIĆ, THE HEAD OF PRESIDENT’S OFFICE / Magistratski trg 1, 11080 Zemun; +381(0)11/2610-404, 011-3161-892, 011-3778-401; +381(0)11/2612-879; www.zemun.rs; English, Russian

By Ana STOJANOVIĆ emun is situated in southeast Srem, just below the Sremska plateau, on the right bank of the River Danube near the confluence with the River Sava. The municipality’s territory is comprised of Ugrinovci and four newly formed settlements of Grmovac, Plavi Horizonti, Altina and Busije. Zemun covers 15,028 hectares of mainly construction land. It is near the airport and at the crossroads of two important European corridors, the E-70 motorway (a 20 km section) and the E-75 motorway (an 18 km section). Zemun’s road network is 172 kilometres long, while an 18-km-long rail corridor passes through the municipality’s territory and there are two commuter railway stations: Zemun field and Batajnica. The spatial master plan envisages the construction of a “light metro”, as well as a new bridge on the Danube that will connect Zemun and Borča. We are talking to the president of the municipality of Zemun, Branislav Prostran, about the advantages of Zemun for investors.

TOP INVESTORS

he following major companies have invested in Zemun so far: Ball Packaging Europe, Coca-Cola HBCSrbija A.D. Zemun, Knauf d.o.o. BeogradZemun, Metro-Cash & Carry Srbija, Florida bel.d.o.o, Stevan Stil, OMV Jugoslavija.

68 / The Investors Guide - Belgrade 2009/2010

In your opinion, what sets Zemun apart from the other municipalities in Belgrade? Zemun is an important cultural and educational centre with a long tradition in education and signiﬁcant resources. These are education and scientiﬁc research facilities, i.e. the institutes. Cultural institutions also represent important resources. Traditionally, Zemun has hosted many culture events - the Interna-

One of the capital projects in Zemun is construction of a new pier and marina tional Festival of Monodrama and Pantomime, Zemun International Caricature Exhibition, Summer on Gardoš, Summer on the Quay and others. In terms of resources that are important for tourism and sport development, the best place is deﬁnitely the town of Zemun, one of the oldest towns in Serbia, with an excellent geographical position; a town on an international crossroads on the banks of the River Danube, with a rich history and a great cultural heritage. The recognisable old part of Zemun, Zemun Quay, Great War Island, Gardoš and unspoiled nature are signiﬁcant and unavoidable tourist attractions.

How would you characterise Zemun’s advantages over other municipalities? Because of its geographical position, Zemun has great economic potential. There is a business zone situated at the most attractive investment locations: the Novi Sad - Belgrade-Zagreb motorway and the part called Ugrinovci. Additionally, Zemun is the centre of road, river and air transport, which is ideal for setting up distribution centres and storage facilities. Zemun also has great tourism potential. It has a beautiful, rich history, tradition and culture. In short, the advantages of the municipality are a favourable geographical position at the heart of road, river and air transport, the River Danube (Pan-European Corridor 5), the proximity of the airport and international routes (Pan-European Corridor 10), short distance to the railway and bus stations and the Batajnica airport. There is free land, with regulated property issues; we have adopted the Belgrade General Spatial Planning Document, there are industrial zones - both existing and planned - and chemical, food processing and construction companies. We have designed and will soon build a marina for boats longer than 30 metres and are going build a bridge that will connect Zemun and Borča. What industrial branches are most developed in the municipality? We have pharmaceutical, chemical,

ZEMUN

S FOR INVESTMENT food, electronic, wood, textile and construction industries. The most prominent companies here are Galenika a.d., Galenika Fitofarmacija, the Veterinary Institute, Navip, Coca-Cola HBC Serbia, Minel-Schroeder, Knauf, Ikarbus, Ball

along the Novi Sad motorway. The Gornji (Upper) Zemun zone has access to the Rriver Danube, while the zone in Batajnica is located along the railway line and the rail bypass. The existing industrial zones have infrastructure. Zemun’s posi-

you provide incentives for investors and what industrial branches would you recommend for investing? One of the capital projects in Zemun is construction of a new pier and marina that will be built in line with European

One of Zemun’s major factories (left) and the Zemun Municipality building Packaging Europe, Metro Cash & Carry Serbia, Pupin Telecom-Inženjering, Polimark, Visan and Kokir Construction. The economy of Zemun has been revived in recent years by many foreign companies that have opened their branches and representative ofﬁces here. Scientiﬁc institutes, like the Maize Research Institute, Institute of Animal Husbandry, Institute for Application of Nuclear Energy in Agriculture, Institute for Chemical Testing, Institute for Plant Protection “Serbia”, Institute for Economy and Machinery and Institute of Physics have always played an important role in the economy of Zemun and the entire region. How are industrial zones organised in the municipality and what infrastructure needs are catered for? Zemun has four industrial zones located

tion is crucial to its development, which is branching out in two directions: expansion in the direction of the motorway, where you can ﬁnd the best infrastructural facilities, and in the direction of the

Zemun has great economic potential because of its geographical position river. By developing business zones we will attract foreign investors and create new jobs, which our country and our city desperately need. What can the municipality offer potential investors at this moment; do

standards and will bring a multitude of business and tourism opportunities to Zemun. Developing industrial zones will attract foreign investors and we are currently setting up an ofﬁce that will assist entrepreneurs in Zemun, i.e. they will be able to say what they want and need, as well as receiving timely information and advice - all with the aim of developing the economy and creating new jobs. How much time does an investors need to obtain all required permits and documents to start doing business here? The municipality is in charge of issuing permits for buildings of up to 800 square metres and is obligated to issue these permits within the legal deadline, provided that all required documents have been submitted. Belgrade 2009/2010 - The Investors Guide / 69

ZVEZDARA

ATTRACTIVE MOTORW MILAN POPOVIĆ, PRESIDENT OF THE MUNICIPALITY OF ZVEZDARA: “The municipality opened a business information centre in 2008, where existing and future enterpreneurs can receive concrete business information and assistance.” CONTACT: MILAN POPOVIĆ, MUNICIPAL PRESIDENT / Bulevar Kralja Aleksandra 77, 11000 Beograd, Zvezdara; +381(0)11/3405-645; +381(0)11/3405-642; www.zvezdara.org. rs; kabinet@zvezdara.org.rs, info@zvezdara.org.rs; English and German

By Tatjana OSTOJIĆ he Municipality of Zvezdara, one of the 17 Belgrade municipalities, is situated in the eastern part of the Serbian capital, bordering the municipalities of Palilula, Vračar, Voždovac and Grocka. The municipality covers an area of 3,064 hectares, while its urban area stretches across 726 hectares. Zvezdara is comprised of so-called cadastrial municipalities, which include the following: Zvezdara, Veliki Mokri Lug, Mali Mokri Lug and Mirijevo. The municipality includes 17 local communities and has a population of 160,000. Agricultural activities are carried out on close to 1,600 hectares of arable land in the local communities of Mirijevo, Mali Mokri Lug and Veliki Mokri Lug. We are talking to Milan Popović, president of Zvezdara municipality, about what sets Zvezdara apart from other Belgrade municipalities.

What are the most important transport routes in Zvezdara municipality? Kralj Aleksandar Boulevard passes through the central part of the municipality, joining the Smederevski road and offering easy access to the Pančevački road and the motorway, which runs through the southern part of Zvezdara. Spatial planning documentation envisages construction of a main outer tangent that will take the pressure off main roads. Constructing the Mirijevo Boulevard, which will link Mirijevo to Karaburma 70 / The Investors Guide - Belgrade 2009/2010

and, further, to downtown Belgrade and the Pančevo road, will alleviate the trafﬁc and raise the quality of life for people living in Zvezdara. Does the municipality have an industrial zone and what infrastructure is available? Zvezdara does have an industrial zone,

The General Association of Entrepreneurs of Zvezdara was established in order to assist entrepreneurs in the municipality which has been relocated from the central part of the municipality. Companies Kluz, Bukulja and Precizna mehanika have been either privatised or closed down and a new detailed regulation plan envisages setting up business zones on the outskirts of Mirijevo, i.e. along the

outer tangent, which are not going to be suitable for industrial activity, but will rather take the form of businesss parks. Mirijevo, a place where almost half of the municipality’s inhabitants live, has development potential, particularly in the trade and services sector. An attractive area near the motorway is also suitable for setting up business parks and the land there is mostly privately-owned. Environmental regulation stipulates a strategic approach to waste management. In that respect, we want to build utility stations along the road towards a waste disposal site in Vinča, as well as recycling facilities. The Municipality of Zvezdara is quite appealing for residential living and I would like to mention the Stražarska kosa, where buildings are constructed in line with sustainable development and energy efﬁciency principles. The municipality has put together a detailed regulatory plan that will enable new residential, public and service facilities to be built above Zvezdarska Forest, in order for the municipality’s outer areas to have more balanced development.

START-UP CENTRE In 2009, we established the Start-Up Centre for people living in Zvezdara who want to start their own business or have just started it. The centre, which was opened in collaboration with the city’s Secretariat of Economy, offers all sorts of information and expert assistance, as well as training for developing the know-how and skills required for running a business, like: writing a business plan, HCCP regulation in the baking and catering industry, keeping financial records, elementary and double book keeping, writing financial reports and tax advice.

ZVEZDARA

AY -SIDE LOCATION What can the municipality offer potential investors at this moment? Do you provide incentives for investors and what industrial branches would you recommend for investing? Bearing in mind the limited authority of our municipality and the fact that only the City of Belgrade is considered a unit of local self-government, Zvezdara can only give its support to initiatives and projects that potential investors present to the relevant city institutions. As an example of this, I would like to mention a project by the World Health Organisation to set up a recycling yard in the Orlovsko area – the biggest Roma settlement in Zvezdara – which received the municipality’s support and is going to be implemented soon. Showing interest and providing logistical support, as well as lobbying with the relevant institutions, is something that the municipality can offer potential investors at this moment. A large portion of Zvezdara is covered by a detailed spatial plan, which is an advantage and a prerequisite for planned construction and strategic planning. How much time does an investor need to obtain all required permits and documents to start doing business here? The City of Belgrade issues operating licences, while the municipality can only issue building permits for buildings that cover up to 800 square metres. If we are talking about permits that we are issuing, this is done in the shortest time possible - since we understand just how important permits are for the municipality’s economic development. Could you name a few large investors that have invested in the municipality so far? We have no ofﬁcial records of any

large foreign investors investing here. What are the future plans of the Municipality of Zvezdara? We need to reconstruct Kralj Ale-

other things, the Association initiates, encourages, helps and coordinates activities to create better prerequisites for development and the work of entrepreneurs and companies here, as well as facilitating

New and old - contrasts of Zvezdara

Stražarska kosa is quite appealing for residential living, since buildings there are constructed in line with sustainable development and energy efficiency principles ksandar Boulevard, which is one of the most important retail zones in the city, and many residential and business premises will be built, thus providing quite a lot of ofﬁce space for service providers. I should mention that the Municipality of Zvezdara and the Belgrade Chamber of Commerce set up the General Association of Entrepreneurs in Zvezdara in 2007, which was established in order to assist entrepreneurs in the municipality. Among

their business collaboration and the overall development of the municipality. We opened the Business Information Centre in 2008, where existing and future entrepreneurs can get concrete information and assistance. Creating a database, establishing contacts and exchanging experiences, i.e. doing everything that can lead to more contemporary, rational and successful business operations, are the goals of both the Association and the Chamber. Belgrade 2009/2010 - The Investors Guide / 71

ČUKARICA

AT THE CROSSRO MILAN TLAČINAC, PRESIDENT OF THE MUNICIPALITY: The advantage of the Municipality of Čukarica lies in the fact that it is located on the banks of the River Sava and that its Makiško Field is home to an underground spring that supplies the entire municipality with drinking water. CONTACT: MILAN TLAČINAC / Šumadijski trg 2, 11030 Beograd; +381 (0)11/3052100; +381 (0)11/3052-470; www.cukarica.rs; kontakt@cukarica.rs; English

By Tatjana OSTOJIĆ he Municipality of Čukarica is located in the southwest of ‘old’ Belgrade. To the west its border in the River Sava, which flows out of Čukarica near the Umka residential quarter. To the east its border is the Ibarska regional road, near Velika Moštanica. We are talking to municipal president Milan Tlačinac about what sets this municipality apart from Belgrade’s 16 others.

In your opinion, how is the municipality of Čukarica different to other Belgrade municipalities? The thing that sets the municipality apart from others is that the Ibarska byway passes through its territor, and, as we all know, this is road is the main route linking Belgrade to southwest Serbia. There is also a plan to build the Belgrade-Čačak motorway through Čukarica, while another quite important route is the Belgrade bypass (Doba-

novci – Bubanj Potok), which links the E-70 and E-75 international highways. The River Sava is also quite signiﬁcant for the municipality’s development, as is the close proximity to Nikola Tesla Airport. Moreover, we have one of the biggest rail freight stations in this area, situated near Železnik.

Permits will be issued within the legally defined deadline, providing that an investor has all the required documentation How would you summarise the

municipality’s advantages? The municipality covers an area of around 15,600 hectares and has close to

170,000 inhabitants. Our municipality is both urban and rural. In the rural area, we possess 8,500 hectares of arable land, with 6,000 hectares of ploughed ﬁelds suitable for small grain, wheat and industrial plants. The advantage of the Municipality of Čukarica lies in the fact that it is located on the banks of the River Sava and that its Makiško Field is home to an underground spring that supplies the entire municipality with drinking water. There is also Ada Ciganlija, the Belgrade Hippodrome, Košutnjak and Topčider forests, which are all considered as offering great tourist potential for both the municipality and the City of Belgrade. Do you provide incentives for foreign investors and how long does it take an investor to obtain all necessary permits for doing business here? Bearing in mind that we, as a city municipality, don’t have the authority of a typical local self-government, the inves-

INVESTING IN SPORT

ioneer Town (Pionirski grad) sports centre is located on a beautiful slope among 40 hectares of forest known as the ‘lungs of Belgrade’, due to its clean air. Construction began in 1947 and today’s appearance dates back from 1976. The centre stretches across 7,500 square metres and has a restaurant, 500-seat conference hall, amphitheatre with 600 seats, lecture studios, a disco, gym, art schools and other sports, recreaational, cultural and entertainment facilities.

72 / The Investors Guide - Belgrade 2009/2010

ČUKARICA

ADS

tors have to turn to the city authorities. That said, the permits that our municipality is allowed to issue will be issued within legally deﬁned deadlines, providing that the interested investor has all required documentation. Could you name a few of the big-

gest investors in your municipality? We have many large companies here: Lola korporacija, Brodotehnika and Bora Kečić, to name just a few. There are also factories like FMP TREJD, the Umka cardboard factory and large construction companies: Stankom korporacija, Caričin grad and others. Lately, Čukarica has become a hot spot for successful companies like Alco Bank, Lola Institut and BMG. How would you deﬁne investment

opportunities in Čukarica? According to many foreign investors that have analysed the investment possibilities and natural resources in the municipality, our investment climate is extremely favourable - primarily because of the municipality’s geographical position. We have what is probably the biggest crossroads of international routes located in the central part of the municipality. This is where the motorway from Vojvodina to Niš and Skopje, the Belgrade-Obrenovac-Šabac-Republika Srpska motorway and the Ibarska byway (stretching from Belgrade to the Raška District and Montenegro) all intersect. We are also home to two major bridges across the River Sava: one for road and one for railway transport. Do you have any industrial zones in the municipality that could be of interest to potential investors?

Čukarica Municipality building

Čukarica’s investment climate is extremely favourable, primarily because of its geographical position When it comes to residential construction (both individual and collective), we have a zone stretching between Žarkovo and Železnik (the Savska and Jezerska route), while potential investors are quite interested in the zone located between Ostružnica and Železnik, as well as the one at the beginning of the Ibarska road. There are quite a few companies that are currently being restructured and are suitable for investing in, such as Lola Korporacija, Beogradski vodovod (The Belgrade Water Supply System), Brodotehnika shipyard, textile company Zelengora and Tarolit, which produces insulation materials. Public enterprise Ada Ciganlija and the Košutnjak sports facility, as well as the Makiška and Lipovačka forests, are also in Čukarica. Although these forests come under state jurisdiction, they are both quite attractive for investing. We would like to invite all potential investors to come to the municipality and see for themselves just how signiﬁcant its economic potential is.

Košutnjak is one of the most at-

tractive picnic resorts in Čukarica. The Košutnjak forest and urban resort covers an area of 330 hectares and lies 250 metres/asl. This deciduous and coniferous forest has many hiking tracks. The name Košutnjak was probably derived from the word ‘doe’ (košuta in Serbian), with deer once being abundant here. Up until 1903 the forest was a closed to the public as a royal hunting ground, but it was then opened to the general public. There are two facilities in Košutnjak: Pioneer Town (a sports and recreational centre) and the Film Town (with film studios). The Košutnjak sports centre has football fields, athletics tracks, volleyball, basketball and handball courts, five outdoor and one indoor swimming pool. If you like to ski, Košutnjak also has a wonderful ski slope. At the bottom of the hill, where the Obrenović royal family used to hunt, there is the renowned Hajdučka Fountain. We also have the Košutnjak camp, the hotel Trim and restaurants Košuta, Golf, Devetka, Filmski grad and Panorama.

Belgrade 2009/2010 - The Investors Guide / 73

TOURISM

IDEAL CITY BREAK DESTI Director of the Belgrade Tourist Organisation, Jasna Dimitrijević, insists that Belgrade is an ideal destination for a short break or a city break and, in that respect, can compete with the likes of Vienna or Budapest The Serbian National Museum

he Belgrade Tourist Organisation (TOB) offers more than 50 ideas on how to spend each week in Belgrade in a different way. You definitely should not miss the unforgettable New Year’s celebration in Belgrade, while there are events such as the Joy of Europe, BITEF, BELEF, BEMUS, the Belgrade Book Fair, the October Salon, an indispensable Fashion Week, concerts, the Belgrade Philharmonic Orchestra etc. Another ‘un-missable’ feature of Belgrade is represented by its nightlife: river rafts, night clubs, discos and bars; the bohemian quarter of Skadarlija, boating on the rivers Sava and Danube. One should certainly explore the Belgrade

74 / The Investors Guide - Belgrade 2009/2010

Fortress, visit the Temple of Saint Sava, discover the archaeological sites of Vinča, tour the complex of royal palaces in Dedinje, cheer for the stars of world sport at the Belgrade Arena, experience go-karting, hit

In the first half of this year, seven percent more foreign tourists visited Serbia than in 2008. all 18 holes on a fun golf course, play on some of the 60 sports fields of Ada, run the Belgrade marathon, have fun and remember that there is always something interest-

ing happening in Belgrade. And, of course, start a business in the City of the Future of Southern Europe. TOB Director, Jasna Dimitrijević, insists that Belgrade is an ideal destination for a short break or a city break and, in that respect, can compete with the likes of Vienna or Budapest. “This is a short break that could last from one to four days, i.e. the second, third or fourth holiday of the year and a highly competitive product that could become commercial in a relatively short time. This is very important when advertising city break packages, which represent a very important investment potential both for Belgrade and Serbia as tourist destinations. One of the results of the global eco-

TOURISM

NATION nomic crisis is the fact that people are now turning to more frequent and shorter holidays several times a year and are less inclined to spend two or more weeks on a holiday. This is one of the reasons why we have chosen such packages in promoting Belgrade as a desirable tourist destination. The features that enhance the city break brand are, above all, the pride and personalities of the people living here, which is a plus for us. We ought to become distinct, like the buses of London, the wide boulevards of Paris or the Gaudi architecture of Barcelona. We need to promote the specificity of Belgrade, something that it noticeable at first glance and is original and different from other European and world cities – the policy and business climate, events, sites and city attractions. The value of word-of-mouth is something that is very important in recommending a specific city. According to the surveys we have conducted in tourist information centres, over 90 percent of respondents said that they would recommend Belgrade to their friends, associates and business partners,” says Dimitrijević. In order to have an offer like that, we need to have a good price, to provide internet booking services, to have all relevant information easily accessible and to promote our gastronomic offer; to have kind hosts and enable tourists to easily tour the city. Dimitrijević, however, says that Belgrade already meets most of those prerequisites. “There are two potential groups of tourists in Belgrade who expect an authentic experi-

TOB Director, Jasna Dimitrijević

A number of events in Belgrade are highly recommended, including the Guitar Art Festival, the Documentary Film Festival, the Dance Festival, film festival FEST, BELEF, BITEF, Belgrade Design Week, the Beer Fest et al ence and are free spirits who are looking for entertainment,” Dimitrijević says. However, hotel accommodation in Belgrade is between 35 to 40 percent more expensive than elsewhere in the region. The TOB director, though, explains that such high hotel prices are justified by high maintenance costs. “On the other hand, there is a question of whether to keep such high prices, but have empty rooms and sit and wait for guests to come or to drop the price and generate higher turnover. I think that if we progress a little every day we are going to get much more in the end,” Dimitrijević notes. Currently, a three-day stay in Belgrade costs between €500 and €600, but there are tourist arrangements that cost just €210. “In other European cities, a weekend stay that

MORE FOREIGNERS FOR NEW YEAR’S “The Belgrade Tourist Organisation expects more foreigners to attend this year’s New Year celebrations in Belgrade than last year, thanks to an interesting celebration programme prepared by the City Assembly,” says Vesna Nađ, PR manager at TOB. Guests from all former Yugoslav states will come, in addition to Greece and Bulgaria, but the exact number is not yet known because arrangements only recently became available. The entertainment programme will be held on the streets of Belgrade, with renowned musicians like Goran Bregović, Ana Stanić, Marija Šerifović and a band called Spring performing, Nađ explains. Last year, approximately 20,000 registered and unregistered tourists from neighbouring and other European countries spent their New Year holidays in the Serbian capital, with all hotel and catering facilities sold out.

includes bed and breakfast in a three star hotel, transportation to the destination and one another service – be that city sightseeing, transfer from airport to hotel or something else – does not exceed €240. We have tried to create such a package for Belgrade that would cost between 210 to 240 euros, airfare included,” explains Dimitrijević, adding that they are currently negotiating with JAT Airways about reducing ticket prices – as one of the prerequisites for this idea to be realised. If an agreement is reached, such a package will be promoted at the Tourism Fair in London in early November, with the aim of attracting more tourists for New Year celebrations. MORE FOREIGNERS IN BELGRADE According to relevant data, a total of 994,682 tourists visited Serbia in the first half of this year, which is nine percent less than in the same period last year. There were 695,733 domestic tourists, i.e. 70 percent of the total number of tourists, which again is a 14% decline. Foreign tourists numbered 298,949, a seven percent increase. In the first half of this year, there were 3,366,934 overnight stays – marking a six percent drop in comparison to 2008. Foreign tourists are responsible for 656,445 overnight stays, Belgrade 2009/2010 - The Investors Guide / 75

TOURISM ble-decker bus tour (with BS Tour buses), as well as the Belgrade Open Tour / Hop on – Hop off (Lasta’s buses are used). “In summer, we had more of so-called weekend and event tourists coming to Belgrade than those who came on business. We also have more young people from other countries coming here and staying in hostels,” Veselinov adds.

City restaurant Ruski Tsar

“[Belgrade] is a magical city; a city that everybody should visit at least once in their lifetime,” – excerpt from the February issue of ULISSE Magazine. which is a four percent increase. Domestic tourists spent most of their time in mountain resorts (37%) and spas (35%), while foreign ones preferred big cities (60%). The most popular destinations with domestic tourists are the Vrnjačka Spa (24%), followed by Kopaonik and Zlatibor mountains and Belgrade. Foreign tourists frequented Belgrade the most (with three percent of them staying more than one night), as well as Novi Sad, Mount Kopaonik and Zlatibor Mountain. More tourists (77,808) came from Bosnia & Herzegovina, representing a six percent increase over last year, followed by tourists from Montenegro and Slovenia. According to TOB’s Dejan Veselinov, an increased number of foreign tourists is a direct result of more aggressive promotion on regional and other markets. Veselinov points out that since the begin-

ning of the marine tourism season, a total of 235 ships with about 27,000 guests and 9,000 crew members sailed into the Sava Port this year. “During the Universiade alone we had more than 10,000 foreigners. They were quite interested in seeing the Beer Fest, with over 650,000 visitors in five days of the festival. Also, numerous concerts of major international stars led to more foreigners coming here. Both foreign and domestic visitors also attended the three-day fish and river festival and the Kalemegdan Fish Fest. Of course, there is the Belgrade Summer Festival with its many cultural events,” said Veselinov. The Belgrade Boat Carnival generated quite a lot of interest, with many carnival groups, both from Serbia and foreign countries, attending the event. New bus tours also attracted a lot of foreigners. There is a dou-

FOREIGNERS TALK ABOUT BELGRADE

ecently Len Belošević wrote in the Pittsburgh Post Gazette: “Belgrade is a city of mystical contradictions. While I was walking along Knez Mihailova Street, the packed pedestrian street which leads from downtown Belgrade to Kalamegdan, I did not see any evidence that Serbia was beset by economic and political problems. The cafés were full of cheerful Serbs drinking coffee, Serbian beer or something stronger like šljivovica. With no visible worries, these people idly discuss life, love and, of course, politics, or ambivalently observe passers-by, including fashionablydressed women who have come out to perform an Old Slavic social ritual known as being seen... One gets the impression that these people, as they drink or walk, are in better spirits and less concerned than the pedestrians of any American city street.” 76 / The Investors Guide - Belgrade 2009/2010

PROMOTING BELGRADE AND SERBIA IN AN ITALIAN MAGAZINE The United States Agency for International Development (USAID) has been implementing its Serbian Competitiveness project together with TOB, the Serbian Tourist Organisation (TOS) and SIEPA. The project is aimed at improving Serbia and Belgrade’s image in the world, through collaboration with international media and airlines.One of the project’s results is an article about Belgrade and Serbia, entitled “The Great Future of Serbia”, which was published in the February issue of Alitalia’s magazine ULISSE, which is distributed on all of the airline’s international flights, i.e. around 600 flights a day. Some 100,000 people a day fly Alitalia. This important promotional article depicts Belgrade as an economic and tourist centre of the region, with outstanding nightlife. The diverse tourist offer of Belgrade made the city a favourite destination in recent years. With its values and various tourist attractions, Belgrade offers everything a guest needs – whether they are here on business or they are young people eager to have a good time. The article recommends a number of events in Belgrade, including the Guitar Art Festival, the Documentary Film Festival, the Dance Festival, film festival FEST, BELEF, BITEF, Belgrade Design Week, the Beer Fest et al. The article points out that Belgrade offers good infrastructure, with the emphasis on hotel and conference facilities which all lead to Belgrade becoming a major centre of congress tourism in Southeast Europe. A beautiful city, with rich history and culture, yet looking to the future with great optimism and possessing an unusual charm – these are just some of the adjectives that Belgrade was given in the article. “It is a magical city; a city that everybody should visit at least once in their life,” the February issue of ULISSE magazine says.

NEWS

ZEMUN – BORČA BRIDGE

Chinese company CRBC has signed a preliminary contract with the Serbian Ggovernment and the City of Belgrade on construction of the Zemun-Borča Bridge, worth €170 million.

he so-called Chinese Bridge, estimated to be worth €170 million, will provide access to the Pančevo road and the Novi Sad motorway for over half a million citizens of Belgrade. Construction is set to commence in 2010. Chinese company CRBC signed a preliminary contract with the Serbian Government and the City of Belgrade on construction of the Zemun-Borča Bridge, with around €145 million (85% of the full cost) to come from a loan granted by China’s Exim Bank. The loan repayment period is 15 years, while the grace period is three years and the fixed interest rate will be three percent annually. The Chinese Bridge will be 1,507 metres long and, with slip and access roads, the project will stand at 21.6 kilometres in length. Serbian Deputy PM and Economy & Regional Development Minister, Mlađan Dinkić, has said that contracts on construction of the bridge and the relevant loan will have been signed by the end of the year. The minister also said that the Chinese company has agreed to hire do-

mestic contractors and use domestic construction materials worth up to 45% of the project’s value. Construction is due to begin in October or November next year, though the contract will have to be ratified in the Serbian Parliament first. The whole project –

“The realistic deadline for completion of construction is 2013,” says Mayor Đilas from design and construction to financing – will be implemented by Chinese companies and banks and, according to initial estimates, it will take three years to build the bridge and access roads. Belgrade Mayor, Dragan Đilas, says that

COOPERATION BETWEEN CHINA AND SERBIA

hinese Ambassador to Serbia, H.E. Wei Jinghua, has said that signing the preliminary contract was an important event that makes economic collaboration between China and Serbia more concrete. This strategic collaboration was discussed during President Tadić’s official visit to China in August of this year. This is one of the biggest infrastructure projects to be implemented together with the People’s Republic of China so far, while it is also a project of importance to the entire region. Traffic congestion in Belgrade will be alleviated once the bridge is constructed, while goods transit will be relocated to the outer metropolitan areas.

constructing the bridge will also lead to construction of another residential quarter in Belgrade. The bridge will connect 380,000 people living in New Belgrade and 170,000 people living in Zemun, i.e. on the left bank of the River Danube in the Municipality of Pančevo. Moreover, in excess of 1,000 hectares of land will be adapted to residential and industrial construction. “The realistic deadline for completion of construction is 2013,” says Mayor Đilas, adding that on the Zemun side the bridge will be linked to the Novi Sad – Zagreb motorway, just underneath the Metro shopping mall. The exit will be on the left bank of the River Danube. On the Borča side, meanwhile, it will link up with the road to Zrenjanin, forming a link towards the Belgrade – Pančevo road and bypassing residential quarters – says Mayor Đilas. According to the mayor, the expropriation process for 177 apartments and industrial facilities along the Zemun road and the bridge has begun, with the remaining land belonging to the PKB agricultural co-operative. A decision has been made not to sell this portion of land as yet, since it would be used for the purpose of building a bridge and accompanying roads. Belgrade 2009/2010 - The Investors Guide / 77

BELGRADE

FEBRUARY MARCH MARCH-APRIL APRIL MAY JUNE-JULY

JULY JULY-AUGUST AUGUST SEPTEMBER

OCTOBER OCT. -NOV. DECEMBER

Belgrade Guitar Art Festival Belgrade International Film Festival (FEST) Belgrade Documentary and Short Film Festival Belgrade Dance Festival Ring Ring International Festival of New Music Night of Museums Festival of Choral Music Summertime Jazz Festival Days of Organs Belgrade Cello Fest Belef Belgrade Summer Festival Belgrade Beer Fest Umbria Jazz Balkanic Windows European Heritage Days Belgrade International Theatre Festival â&#x20AC;&#x201C; BITEF International Comicstrip Showroom Oktobarski salon Belgrade Music Festival (BEMUS) Belgrade International Book Fair Belgrade Jazz Festival International Underwater Film Festival

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BELGRADE GUITAR ART FESTIVAL is an international classical guitar event. Guitar Art Festival programme includes evening concerts, late midnight sessions, as well as a competition of young guitarists, classes and lectures held by international masters of the instrument. *** INTERNATIONAL FILM FESTIVAL (FEST) is of a review nature and during the festival time new international and domestic films are being premiered. The festival has lost some of its former glamour, but it still an ultimate must for film buffs. *** BELGRADE DOCUMENTARY AND SHORT FILM FESTIVAL has been international since 2004 and has International and National Competition as the two major selections. The festival includes a number of side events, film screenings and cultural happenings. *** BELGRADE DANCE FESTIVAL (BEOGRADSKI FESTIVAL IGRE) is an international dance festival that presents contemporary dance and ballet from all over the world. This festival features a program of international dance performances and educational workshops. *** RING RING, AN INTERNATIONAL FESTIVAL OF NEW MUSIC, presents bands from all over the world playing variations on traditional music with a popular twist. *** NIGHT OF MUSEUMS opens the doors of numerous museums and galleries in the city. Visitors have a chance to enjoy many interesting exhibitions, performances, concerts and fashion shows at many locations and have unique art experience during one night only. *** FESTIVAL OF CHORAL MUSIC presents choirs from the country and abroad performing choral pieces written in the musical tradition of orthodox and other churches.

ANNUAL CULTURAL CALENDAR SUMMERTIME JAZZ FESTIVAL is a celebration of jazz music with performances by many international stars that are a refreshing change to a hot summer in Belgrade. *** DAYS OF OGRANS is an international festival presenting first-class performers on the organ and introducing Belgrade public to music pieces written for the organ, ranging from Romanticism to contemporary period. *** BELGRADE CELLO FEST is an annual international event for cello fans. It includes master classes as well as concerts of world-famous cellists. *** BELEF BELGRADE SUMMER FESTIVAL presents performing arts (theatre and contemporary dance), visual arts (video art, installations, prints and performances) and music. It focuses on creation of artistic works as a public spectacle. *** BELGRADE BEER FEST combines a great location beside the Danube, a good music programme and beer. The line-up includes domestic and international musicians ranging from tamburica to pop and rock. *** UMBRIA JAZZ BALKANIC WINDOWS is a result of a cooperation with Umbria Jazz Festival in Italy. Italian and Balkan jazz musicians perform every year. The music is a fusion of jazz, world and regional sounds. *** EUROPEAN HERITAGE DAYS sees the public given an opportunity to visit art galleries, libraries, government buildings, attend lectures, join guided tours and lectures and get behind usually closed doors of some historical buildings and art collections. *** BELGRADE INTERNATIONAL THEATRE FESTIVAL â&#x20AC;&#x201C; BITEF introduces the latest theatre trends into the Belgrade theatre world. Presenting in-

ternational theatre companies and plays this is an event highly valued on the cultural map. *** INTERNATIONAL COMICSTRIP SHOWROOM presents illustration and animation work of domestic and international comic artists of all ages through the various exhibitions and educational programmes. *** BELGRADE MUSIC FESTIVAL (BEMUS) covers various classical music concerts ranging from opera, choir and orchestra performances. The festival is an opportunity for Belgrade public to listen to some of the best domestic and international classical music performers. *** WOCTOBER ART SALON features current tendencies in visual and applied arts in the Serbian and international art scene. *** BELGRADE BOOK FAIR is an international event presenting newly published books by domestic and foreign authors including a presentation of the guest country and its publishing production. *** BELGRADE JAZZ FESTIVAL is a real treat for jazz lovers. It is a mix of traditional and innovative jazz sounds and brings numerous international musicians to Belgrade. *** INTERNATIONAL UNDERWATER FILM is a rare opportunity for public to see underwater world and this production. The films are screened in two festival categories: independent producersamateur film makers and professional production category. *** RECOMMENDATIONS: The Art Gallery of Serbian Academy of Sciences and Arts that hosts exhibitions of artists whose names are written down in art history books and The Belgrade Philharmonic Orchestra whose guests, performances and choice of classical pieces are an experience not to be missed. Belgrade 2009/2010 - The Investors Guide / 79

DIRECTORY CITY BODIES ASSEMBLY OF THE CITY OF BELGRADE Dragoslava Jovanovića 2 11000 Belgrade Tel: +381(0)11/3229-678 www.beograd.rs CITY ASSEMBLY CHAIRMAN’S OFFICE Dragoslava Jovanovića 2 11000 Belgrade Tel: +381(0)11/3244-415, 3229-975 MAYOR Dragoslava Jovanovića 2 11000 Belgrade Tel: +381(0)11/3229-678 MAYOR’S OFFICE Dragoslava Jovanovića 2 11000 Belgrade Tel: +381(0)11/3246-764, 3229-787 CITY PUBLIC PROSECUTOR’S OFFICE Tiršova 1 11000 Belgrade Tel: +381(0)11/3610-157 CITY ADMINISTRATION Trg Nikole Pašića 6 Tel: +381(0)11/3229-678 27. marta 43-45 Tel: +381(0)11/3227-241 Tiršova 1 Tel: +381(0)11/2688-655 Golsvordijeva 35 Tel: +381(0)11/3083-800 Masarikova 5 Tel: +381(0)11/3616-211 Mekenzijeva 31 Tel: +381(0)11/2453-142 SECRETARIAT FOR FINANCE Trg Nikole Pašića 6 11000 Belgrade Secretary,: Tel: +381(0)11/3229-767 Deputy Secretary: Tel: +381(0)11/3232-541 SECRETARIAT FOR THE ECONOMY Masarikova 5/XVIII 11000 Belgrade Secretary:

Tel: +381(0)11/3061-555 Deputy Secretary,: Tel: +381(0)11/3061-530 PRICING ADMINISTRATION Director, Tel: +381(0)11/3061-716 DIRECTORATE FOR BUFFER STOCK Director, Tel: +381(0)11/3061-544 SECRETARIAT FOR HEALTH CARE Masarikova 5/XVI, 11000 Belgrade Secretary: Tel: +381(0)11/3061-619 Deputy Secretary: Tel: +381(0)11/3061-618 SECRETARIAT FOR CULTURE Trg Nikole Pašića 6 11000 Belgrade Secretary: Tel: +381(0)11/3241-344 Deputy Secretary: Tel: +381(0)11/3232-348 SECRETARIAT FOR EDUCATION Mekenzijeva 31 11000 Belgrade Secretary: Tel: +381(0)11/2432-482 Deputy Secretary: Tel: +381(0)11/2432-482 SECRETARIAT FOR ADMINISTRATION Trg Nikole Pašića 6 11000 Belgrade Secretary: Tel: +381(0)11/3236-569 Deputy Secretary: Tel: +381(0)11/3242-325 SECRETARIAT FOR URBAN PLANNING AND CONSTRUCTION 27. marta 43-45 11000 Belgrade Secretary: Tel: +381(0)11/3227-576 Deputy Secretary: Tel: +381(0)11/3229-000 SECRETARIAT FOR UTILITIES AND HOUSING SERVICES Golsvordijeva 35 11000 Belgrade Secretary:

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Tel: +381(0)11/3083-820 Deputy Secretary: Tel: +381(0)11/3083-822 ENERGY ADMINISTRATION Director, Tel: +381(0)11/3083-823 WATER ADMINISTRATION Director, Tel: +381(0)11/3083-810 SECRETARIAT FOR PROPERTYRIGHTS AND BUILDING INSPECTION 27. marta 43-45 11000 Belgrade Secretary: Tel: +381(0)11/750-237 Deputy Secretary: Tel: +381(0)11/3292-427 SECRETARIAT FOR TRANSPORT 27. marta 43-45 11000 Belgrade Secretary: Tel: +381(0)11/2754-933 Deputy Secretary: Tel: +381(0)11/3035-260 ROADS DIRECTORATE 27. marta 43-45 11000 Belgrade Director, Tel: +381(0)11/3309-440 DIRECTORATE FOR PUBLIC TRANSPORT 27. marta 43-45 11000 Belgrade Director, Tel: +381(0)11/3309-457 SECRETARIAT FOR ENVIROMENTAL PROTECTION 27. marta 43-45 11000 Belgrade Secretary: Tel: +381(0)11/3222-681, 3226-106 Deputy Secretary: Tel: +381(0)11/3226-106 SECRETARIAT FOR SPORT AND YOUTH Masarikova 5/XV 11000 Belgrade Secretary: Tel: +381(0)11/2751-071 Deputy Secretary: Tel: +381(0)11/2750-546 SECRETARIAT FOR INSPECTIONS

27. marta 43-45 11000 Belgrade Secretary: Tel: +381(0)11/2753-459 Deputy Secretary: Tel: +381(0)11/2753-459 SECRETARIAT FOR SOCIAL AND CHILDREN’S WELFARE Tiršova 1a 11000 Belgrade Secretary: Tel: +381(0)11/ 3620-241, 2658-523 Deputy Secretary: Tel: +381(0)11/2658-523 ASSEMBLY AFFAIRS AND REGULATIONS SERVICE Dragoslava Jovanovića 2 11000 Belgrade Secretary: Tel: +381(0)11/3241-909 SERVICE FOR INFORMATION Masarikova 5/XVII 11000 Belgrade Secretary: Tel: +381(0)11/3061-699 Deputy Secretary: Tel: +381(0)11/3061-699 GENERAL AFFAIRS SERVICES Trg Nikole Pašića 6 11000 Belgrade Director, Tel: +381(0)11/3222-855 Deputy Director, Tel: +381(0)11/3227-600 SERVICE FOR COMMUNICATIONS AND COORDINATION OF PUBLIC RELATIONS Golsvordijeva 35 11000 Belgrade Director, Tel: +381(0)11/3083-806 INSTITUTE OF INFORMATICS AND STATISTICS Tiršova 1 11000 Belgrade Director: Tel: +381(0)11/3620-138 Deputy Director, Tel: +381(0)11/3620-138 AGENCY FOR COMMERCIAL SPACE Mekenzijeva 31 11000 Belgrade

DIRECTORY Director, Tel: +381(0)11/2450-170 Deputy Director, Tel: +381(0)11/2450-144 AGENCY FOR COOPERATION WITH NGOS AND FOR EUROPEAN HARMONIZATION Masarikova 5/XIII 11000 Belgrade Tel: +381(0)11/3061-530 CITY ENTERPRISES AND INSTITUTIONS Urban Public Transport Enterprise “Beograd” Kneginje Ljubice 29 11000 Belgrade Tel: +381(0)11/2627-411 ROAD MAINTENANCE Nušićeva 21 11000 Belgrade Tel: +381(0)11/3302-800 DISTRICT HEATING PLANTS OF BELGRADE Savski nasip 11 11000 Belgrade Tel: +381(0)11/2093-000 WATER SUPPLY AND SEWAGE OF BELGRADE Deligradska 28 11000 Belgrade Tel: +381(0)11/3612-790 CITY SANITATION Mije Kovačevića 4 11000 Belgrade Tel: +381(0)11/2767-666 CITY MARKETPLACES Živka Karabiberovića 3 11000 Belgrade Tel: +381(0)11/2767-666 Tel: +381(0)11/3806-450 INFOSTAN Danijelova 33 11000 Belgrade Tel: +381(0)11/3954-240 PARKING SERVICES Milentija Popovića 9 11070 New Belgrade Tel: +381(0)11/2228-000 FUNERAL SERVICES Ruzveltova 50 11000 Belgrade Tel: +381(0)11/2701-300 GREENERYBELGRADE Surčinski put 2

Tel: +381(0)11/3129-300 CITY HOUSING Danijelova 33 11000 Belgrade Tel: +381(0)11/3950-429 BELGRADE LAND DEVELOPMENT PUBLIC AGENCY Njegoševa 84 11000 Belgrade Tel: +381(0)11/244-9494 BELGRADE URBAN PLANNING BUREAU Palmotićeva 30 11000 Belgrade Tel: +381(0)11/3331-500 ADA CIGANLIJA Ada Ciganlija 2 Tel: +381(0)11/3544-634 BELGRADE FORTRESS Kralja Petra 71/III 11000 Belgrade Tel: +381(0)11/ 2620-685 SAVA CENTER Milentija Popovića 9 11070 New Belgrade Tel: +381(0)11/220-6000 RTV “STUDIO B”, PUBLIC BROADCAST COMPANY Masarikova 5 11000 Belgrade Tel: +381(0)11/361-3171 TOURIST ORGANIZATION OF BELGRADE Masarikova 5/IX 11000 Belgrade Tel: +381(0)11/3061-572 “TAŠMAJDAN” SPORTS AND RECREATION CENTER Ilije Garašanina 26-28 11000 Belgrade Tel: +381(0)11/3235-063 CITY CENTER FOR PHYSICAL CULTURE Deligradska 27 11000 Belgrade Tel: +381(0)11/2658-747 “PIONIRSKI GRAD” SPORTS AND RECREATION CENTER Kneza Višeslava 27 11000 Belgrade Tel: +381(0)11/3542-094 CITY CENTER FOR SOCIAL

WORK Ruska 4 11000 Belgrade Tel: +381(0)11/2650-329 CITY UTILITY SERVICES WATER SUPPLY AND SEWERAGE SYSTEMS Public Utility Company “Belgrade water supply and sewerage”, Tel: +381(0)11/3606-606 HEATING AND HOT WATER SYSTEMS Public Utility Company “Beogradske elektrane” (“Belgrade Power Plants”), Tel: +381(0)11/ 2093-100 ELECTRIC POWER SUPPLY Electric Power Industry of Serbia – Public Company “Elektrodistribucija Beograd” (“Belgrade Electric Power Distribution”) Tel: +381(0)11/340-5555 TELECOMMUNICATIONS Telekom Srbija Tel: +381(0)11/977, 9813 GAS Srbijagas Tel: +381(0)11/2604-130, 312-9237 PUBLIC CITY TRANSPORT Public Transport Directorate Tel: +381(0)11/ 3309-000 City Transport Company “Belgrade” Tel: +381(0)11/629-019 TC “Lasta” Tel: +381(0)11/ 2180-691

Rail Transport Company “Beograd” – Beovoz Tel: +381(0)11/337-00-31, 337-00-35 PARKING Public Utility Company “Parking service” Tel: +381(0)11/3035-400, 3031-707 MAINTENANCE OF STREETS AND ROADS Road Directorate Tel: +381(0)11/ 330-9250 Public Utility Company “Beograd-put” Tel: +381(0)11/2765-382 OCCUPATION OF PUBLIC AREAS Secretariat for Transport Tel: +381(0)11/330-9599 Road Directorate Tel: +381(0)11/330-9250 TRAFFIC REGULATION AND SAFETY - Secretariat for Transport Tel: +381(0)11/330-9599 GREENERY Public Utility Company “Greenery-Belgrade Tel: +381(0)11/2630-506 CITY SANITATION Public Utility Company “City sanitation” Tel: +381(0)11/3294-901 HOUSING SERVICES Public Company “City Housing” Tel: +381(0)11/ 3950-300, 3950-301 PROPERTY RIGHTSLEGAL AFFAIRS AND BUILDING INSPECTION

IMI INTERNATIONAL Milutina Milankovica 1b 11070 Novi Beograd, Srbija tel./fax. +381 11 3 111 484 www.imi-internationalcee.com e-mail: admin@imi-international.rs

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DIRECTORY Secretariat for Property Rights - Legal Affairs and Building Inspection Tel: +381(0)11/3228-740 URBAN PLANNING AND BUILDING AFFAIRS - Secretariat for Urban Planning and Building Affairs, Tel: +381(0)11/3229-000 CHIMNEYSWEEPING SERVICES “Chimney-sweeper” Company Tel: +381(0)11/2632-454 FUNERAL SERVICES Public Utility Company “Funeral Services” Tel: +381(0)11/2071-333 ENVIRONMENT Secretariat for Environmental Protection Tel: +381(0)11/3226-106 MARKET SERVICES Public Utility Company “City Markets” Tel: +381(0)11/ 3806-450, 3806-451 COLLECTION OF UTILITY CHARGES Public Utility Company “Infostan” Tel: +381(0)11/395-4240 INSPECTIONS Public Utility, Transport, and Ecological Tel: +381(0)11/ 3227-000 BUILDING INSPECTION Tel: +381(0)11/3228-740 MUNICIPALYTIES BARAJEVO Svetosavska 2 Tel: +381(0)11/8302-115 Chairman of the Municipality: Branka Savić Tel: +381(0)11/8302-118 www.barajevo.org.rs GROCKA Bulevar oslobođenja 39 Tel: +381(0)11/8501-312 Chairman of the Municipality: Radovan Todorović Tel: +381(0)11/8501-221, 8501-609

www.grocka.rs LAZAREVAC Karađorđeva 42 Tel: +381(0)11/ 8123-191 Chairman of the Municipality: Branko Borić Tel: +381(0)11/8121-503, 8126-500 www.lazarevac.rs MLADENOVAC Janka Katića 6 Tel: +381(0)11/8231-866 Chairman of the Municipal Assembly: Branislav Jovanović Tel: +381(0)11/8231-150 www.mladenovac.rs NOVI BEOGRAD Bulevar Mihaila Pupina 167 Tel: +381(0)11/ 311-60-00 Chairman of the Municipality: Nenad Milenković Tel: +381(0)11/311-58-58, 310-67-80 www.novibeograd.rs OBRENOVAC Vuka Karadžića 74 Tel: +381(0)11/8726-400 Chairman of the Municipality: Željko Jovetić Tel: +381(0)11/ 8721-110, 8726-406, Fax: +381(0)11/8721-996 www.obrenovac.rs PALILULA Takovska 12 Tel: +381(0)11/3236-221 Chairman of the Municipality: Danilo Bašić Tel: +381(0)11/ 3243-118, 3243-119 www.palilula.org.rs RAKOVICA Miška Kranjca 12 Tel: +381(0)11/3051-788 Chairman of the Municipality: Bojan Milić Tel: +381(0)11/3583-044 www.rakovica.rs SAVSKI VENAC Kneza Miloša 69 Tel: +381(0)11/2061-700 Chairman of the Municipality: Tomislav Đorđević

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Tel: +381(0)11/361-5382, 361-5388 www.savskivenac.rs SOPOT Kosmajski trg 5 Tel: +381(0)11/8251-211 Chairman of the Municipality: Živorad Milosavljević Tel: +381(0)11/ 8251-155 www.sopot.org.rs STARI GRAD Makedonska 42 Tel: +381(0)11/32-20-721 Chairman of the Municipality: Mirjana Božidarević Tel: +381(0)11/32-21-114 www.starigrad.rs SURČIN Vojvođanska 79 Tel: +381(0)11/8443-214 Chairman of the Municipality: Vojislav Janošević www.surcin.net VOŽDOVAC Ustanička 53 Tel: +381(0)11/2441-071 Chairman of the Municipality: / Tel: +381(0)11/ 244-31-59, 244-04-03 www.vozdovac.rs VRAČAR Njegoševa 77 Tel: +381(0)11/ 3081-400

Chairman of the Municipality: Branimir Kuzmanović Tel: +381(0)11/3081-442 www.vracar.rs ZEMUN Magistratski trg 1 Tel: +381(0)11/ 2198-323 Chairman of the Municipality: Branislav Prostran Tel: +381(0)11/2610-404, 3161-892 www.zemun.rs ZVEZDARA Bulevar kralja Aleksandra 77 Tel: +381(0)11/2422-122 Chairman of the Municipality: Milan Popović Tel: +381(0)11/2423-230 www.zvezdara.org.rs ČUKARICA Šumadijski trg 2 Tel: +381(0)11/ 3052-100 Chairman of the Municipality: Milan Tlačinac Tel: +381(0)11/3052-111 www.cukarica.rs STALNA KONFERENCIJA GRADOVA I OPŠTINA Makedonska 22/VIII 11000 Belgrade Tel: +381(0)11/3223-446 Fax: +381(0)11/3221-215 E-mail: secretariat@skgo.org

The City of Belgrade comprises 17 urban municipalities: 1. Barajevo 2. Voždovac 3. Vračar 4. Grocka 5. Zvezdara 6. Zemun 7. Lazarevac 8. Mladenovac 9. New Belgrade 10. Obrenovac 11. Palilula 12. Rakovica 13. Savski venac 14. Sopot 15. Stari grad 16. Surčin 17. Čukarica

The Territory of the City of Belgrade is stipulated by the legislation. The boundaries among the City Municipalities are determined by the decision of the City Assembly based on the previously provided opinion of the assemblies of urban municipalities.

The bodies of the City of Belgrade include: - City Assembly - Mayor - City Council

The City of Belgrade is a separate territorial unit, in which the citizens run the local selfgovernment. The City of Belgrade conducts the operations of the municipalities stipulated by the Constitution, operations entrusted to it by the Republic pursuant to the legislation, those from the framework of its own authorities and responsibilities, as well as other operations laid down by the legislation and City Charter.

BELGRADE FACTS