Construction of metro could start in 2017? - What does Belgrade want to reach through public – private partnership?

Source: eKapija Tuesday, 11.11.2014. 15:33
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Serbia is open for cooperation with French companies on PPP projects but it needs support of France in training of people who will deal with this investment model, the mayor of Belgrade, Sinisa Mali, said on Friday, November 7, 2014.


At the Serbian Chamber of Commerce, at the annual PPP summit “French experience in Serbian environment”, Mali invited French companies to participate in the Belgrade on water project and then he presented to businessmen a few “key projects for Serbia and the city of Belgrade” which will be implemented through PPP.


The mayor first repeated the known story about the construction of the metro through PPP mode and said that the “project will have to be implemented since Belgrade will not be able to function without metro in the next decades”.


As he explained, the first thing to be solved is definition of the first metro route. In order to make it possible, it is necessary to carry out an analysis of city traffic in Belgrade which means to count all passengers and vehicles during the next two months.


Based on the agreement from 2011 which Serbia has with the Government of France and which, as Mali said, on Thursday (November 6, 2014) was confirmed with the memorandum of understanding of the two countries, it was planned that the metro project “which will completely change Belgrade and start Serbian and French construction industry” will be in with companies from France.


Vinca – black spot of Belgrade


Another project the capital counts one when it comes to PPP is solving the landfill issue in Vinca.


The plan is to release the tender by the end of June for private partner that would manage the landfill, build recycling facility and facilities for production of energy from waste. The project totals EUR 250 to 300 m, Mali said.

As he said, there are a few French companies interested in this project.


Let’s remind that eKapija j has already written about the interest of some French companies as well as about good experience which could be used in Vinca’s case.

The City of Belgarde identified 16 underground garages which it wants to develop in the next years, Mali said, stating that the projects for four garages have already been prepared.

He said the projects totaling more than a billion euros will be implemented and they refer to rehabilitation and construction of water supply network, five plants for water treatment and sewerage system rehabilitation.


Through PPP, Belgrade will try to implement a few ESCO projects in distance heating, public lighting energy efficiency increase and geothermal waters exploitation.



On Thursday, we signed with France a Memorandum of understanding on development of international airports in Serbia. Mali outlined that Air Serbia has transported four million passengers so far which is double than last year..

The mayor outlined that it is essential to find a concession partner for the airport and added that tender for concession advisor will be released soon.



French companies ready to participate in PPP projects in Serbia


At the official meeting at SCC, large French companies– Bouygues Construction, Dalkia EDF, Saur COVED, Suez Environment and Veolia Water Solution – presented legal aspects and funding models for PPP projects implemented in the neighboring countries (Zagreb airport, BINA highway in Istra, business park in Beocin, waste water treatment plant in Maribor, etc.). These are companies with a number of projects in construction of roads, water supply systems, waste water and solid management systems, energy facilities.


- There is a clear political will of the two countries to carry out PPP projects in Serbia which we confirmed by signing Agreement on technical cooperation. Projects which local self-governances want to develop are similar to projects where France has good results and we are sure that the implementation will be successful - Jean Philippe Nadal, head of PPP department t at the French Agency for international technical cooperation u (ADETEF).


(Photo: Suzana Obradović)

Since towns and municipalities in Serbia do not have sufficient experience in PPP, France is ready to, through ADETEF-a, together with NALED and SCC, provide the support of the best French experts. Serbia, as a country of West Balkans and a candidate for EU member, is in the focus of ADETEF and he signed Agreement on cooperation will imply support to expert development of Serbian Commission for PPP.


In France, three quarters of PPP contracts were signed by local self -governance. You can read more about specific examples of French experience in eKapija’s texts .

M.S.

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