Vladan Vasic, the President of the Temporary Organ of Pirot – New Bus Station to Cost EUR 1.5 to 2 Million, If There Are No Partners, We Will Finance the Works from the City Budget

Exactly 20 years ago, in December 2003, Vladan Vasic was appointed president of the Municipality of Pirot, whereby, at 32, he became one of the youngest presidents of a local self-government in the country at that moment. Two decades later, as one of the longest-standing heads of a town or a municipality in Serbia (currently in the position of the president of the Temporary Organ of Pirot), he emphasizes that he is very satisfied with the development of the city, because his impression is that Pirot has changed a lot in terms of infrastructure.

eKapija: What have been the biggest challenges when you were appointed head of the city as one of the youngest presidents of a local self-government in Serbia?

– At the time I was appointed president of the municipality, Pirot was neglected within Serbia. We were a backwater town which was laughed at even by its own residents. But then we started changing things with determination, on both the small scale and the large scale, and achieved what we had set out to do, which was to make Pirot a city in southeast Europe, a city with a good business environment, a city with excellent sports infrastructure, a city with sports and cultural events, a city which has protected its brands with a geographic designation of origin, which has built many facilities, such as the outdoor and indoor pools, there’s also the project of the renovation of the fortress… So, we have turned from a city that people used to run away from to a city which has a future and which people are proud to say they are from. I believe that it is one of the best things that have been done and something that I am the proudest of – that change in how people think about their own city.

eKapija: On the other hand, is there anything that was perhaps among the plans and ideas, but couldn’t be realized, and why?

– Of course, there have been plenty of things we haven’t managed to realize, such as the moving of the bus station, the construction of the Emergency Service, the covering and the reconstruction of the outdoor green market, or the opening of a faculty, which we are striving for. But those are things and opportunities for the future period – to have all that realized and to have Pirot develop even more.

eKapija: You started leading Pirot at the time when privatizations of large Serbian companies were very current in this city and in the rest of Serbia. As in the rest of the country, in Pirot, some of those privatizations were successful, and some not. It used to be that Prvi maj and Tigar were the backbone of the city’s economy, and what is the backbone of Pirot’s economy today?

– When I became the president of the municipality in 2003 (later on, the mayor), I remember it well, I was facing strikes and the blocking of what was then the main road, that is, the Sarlah tunnel. Workers of Polet, Dragos, Piroteks were gathered there – due to their difficult position, due to years of unpaid salaries, due to the initiated bankruptcy and privatization procedures. It was a bad period, not just in Pirot, but in the whole country. An economy transition in which a huge number of workers lost their jobs. In the meantime, the privatization of Prvi Maj happened, and then it was terminated, the company even went into bankruptcy proceedings, and here it is now, Prvi maj is working again. It has been bought by an Italian company which currently has 300 workers and invests quite a lot in the reconstruction of the infrastructure. Polet, Dragos and Piroteks have been practically wiped out, whereas Tigar has gone through a major transformation. One part of Tigar has remained state-owned and that part is in a problem, but what’s most important is the arrival of the multinational, large company Michelin, which has bought a part of the former Tigar holding. Michelin has bought the car tire factory and invested a huge sum of money. In some ten years that they have been owners, over EUR 500 million has been invested and the employment has been raised from 1,400 to over 4,000 workers at the company itself, so that is certainly the backbone of the current economy of Pirot. In addition to that, in these twenty or so years, we have awakened the entrepreneurial spirit, which was not seen in people from Pirot previously, so now there is a great number of enterprises, small and medium ones, especially small entrepreneurs. We are also developing hospitality, tourism as a new industry, but also services. In addition to that, construction companies have grown stronger thanks to the construction of the highway, but also due to the large investments made by the local self-government and the large investments of Tigar Tyres in the construction of new facilities.

eKapija: Recently, it was announced that a strategic partner was being sought precisely for Tigar AD. What is going on with that and how far have things progressed?

– Tigar AD is a state company, because the state converted the debts that Tigar had due to the problems it had found itself in – not just in terms of unpaid salaries, but also obligations toward the state, such as taxes, obligations toward the Pension and Disability Insurance Fund, toward the local self-government. All the state institutions converted their claims into ownership and Tigar AD is now state-owned. About a month ago, the surplus workers were finally paid off, with the idea to reduce the administration as much as possible, so that the burden is not on production workers. The intention is to make Tigar more profitable. The Prepackaged Reorganization Plan (PPRP) was adopted as well, which means that the future purchaser or the future strategic partner that the state is looking for will be free from all the obligations and burdens, it will start from scratch and it will have the task of investing in the improvement of the means of work, machines and equipment, without any obligations and burdens, and the market for Tigar AD already exists. That market is export-oriented – high-quality protective footwear is being produced. For example, the customers are the armed forces of Sweden and Norway, there’s also Canada, because equipment for employees in fire units is also produced at Tigar AD. There have even been exports to Japan. So, the market is there, another large customer is the Decathlon store chain. But certainly, a strategic partner is much needed. I believe that the state has a big role there, primarily the Ministry of Economy and the Ministry of Finance, because the local self-government does not have the capacity to talk to the big strategic players that Pirot and Tigar AD need. Within the transformation of Tigar, the local self-government has become the majority owner, almost 100% owner of the Free Zone Pirot, one of the most successful free zones in the region. Several years ago, the Financial Times pronounced it the most successful and best zone in Europe, and the fact that Michelin operates in it had certainly contributed to it. However, we want to promote the Free Zone and the free zone regime which spreads on over 103 ha even beyond Michelin, which we do. There’s also Prvi maj, there are around twenty other production companies, over 70 trade companies, and that is why the Free Zone is a good place for investments.

eKapija: New investors in Pirot and the area have been announced. Is it known already who they are or at least which industries these potential investors are coming from?

– We are certainly trying to promote everything we’ve already mentioned, so that other investors would also come to Pirot. There have been some potential talks, but nothing more concrete than that for now.

eKapija: What is the current employment rate like in Pirot compared to the past 20 years? In which fields is there the biggest chance for the creation of new jobs in Pirot?

– The numbers at the National Employment Service, that is, the labor market, are historic, in the sense that there have never been fewer unemployed people. There is potential for new jobs and workforce in Pirot. Some twenty years ago, as I’ve already said, workers from ruined factories, who were looking for jobs, gathered to express their dissatisfaction and blocked the highway and the tunnel. Now the situation is much different. Of course, as is the case everywhere in the world due to the war between Russia and Ukraine, there have been cases of destabilization in certain small companies. The energy crisis has also contributed to the transformation of companies, but even with all that, in Pirot, in general, there is potential for the arrival of new investors. Also, people who are looking for a job have an opportunity to get one. As a local self-government, we invest considerable funds. Each year, we do so through the National Employment Service and through donors such as the German Help or the German Federal Ministry for Economic Cooperation and Development – we stimulate the giving of money or equipment to people who are socially vulnerable so that they can start their own businesses, we stimulate self-employment, retraining and additional training. Also, in the field of hospitality and tourism, truck and bus drivers are needed. Workers are also needed in metal processing, due to Tigar and the accompanying small companies that follow Tigar, that is, Michelin. Our desire is to also change the qualification structure, and a lot of money is invested in the stimulation of the IT sector, with the idea to have young people be active in these fields. Furthermore, there’s also the stimulation of agriculture and food production.

eKapija: When it comes to healthcare, a new Emergency building has also been announced. Which conditions need to meet so that that project would be completed as well?

– The existing project documentation is currently being prepared, that is, rearranged, considering that we have slightly changed the location in Cirila i Metodija Street toward the newly opened Deva Polyclinic. That’s where our Emergency building will be as well. So, the status of the project is that we are currently rearranging the project documentation, so as to get a building permit, and I hope that things will go as the president of Serbia has promised – that we will finish that building together.

eKapija: The moving of the bus station has been announced as well, and you recently confirmed yourself that the land for that purpose had been obtained from the state. Where is it supposed to be moved (it was announced earlier that it would be moved to the entrance to the city)?

– The most important thing at this moment is that the we have gotten the land on which the bus station is supposed to be built from the Property Directorate of the Republic of Serbia. That land is located at the entrance to the city, at the connection to the highway and the main road route Nis-Pirot-Dimitrovgrad, and the Pirot West interchange is very close as well. The location has two hectares. We have adopted the planning documentation, the DRP of the bus station has been adopted. Project documentation is being done at the moment. The location is well-chosen, because it is at the entrance to the city, and it is not far from the city center. It is also very close to the fortress.

eKapija: How much will that job cost and is it perhaps to be done in cooperation with a private partner, which would then manage the stations?

– It will probably cost EUR 1.5 to 2 million. If we don’t get a strategic partner or state assistance, we will finance it ourselves from the city budget.

eKapija: When it comes to regional traffic connecting, are any major infrastructure projects planned that concern improving the traffic communication of Pirot and the surrounding towns and municipalities?

– We have a good network of regional roads. The road to Babusnica is in a very good condition, and the part of the road route that is not reconstructed is just being finished. Also, toward Stara Planina, toward our villages and toward Dimitrovgrad, the road is in a good condition. There too, the part of the road near the village of Rsovci is also being reconstructed, as well as the one toward Visocka Rzana. That’s also important for our tourism. A part of the road, the regional road route toward Dimitrovgrad, is reconstructed, but it is not in a very good condition, considering that it was intensively used for the traffic of freight trucks as well while the road was being built. At a later date, perhaps, that should be reconstructed, and the project documentation for the reconstruction of the tunnel is being done. The reconstruction of the Dimitrovgrad-Pirot-Nis railroad has also begun, which is very important. The completion of the gas interconnection between Sofia and Nis is also important, because it is important for our industry, primarily for Tigar Tyres, so as to stop using coal and shift to gas, but also for our heating plant. In the secondary phase, this interconnection is also important for our citizens.

eKapija: Pirot and its area have plenty of tourism potential, as well as cultural features and historical heritage. It seems, however, that they are still underutilized. Are there any projects, either ongoing or in preparation, that concern this field?

– We were not known as a city of tourism, but as a transit, industrial city. But in the past ten years or so, we have been turning to tourism as well, in order to use the potentials of Stara Planina. Plenty of small hotels and apartments have been built in the territory of the city of Pirot. The hotel in the city center is fully renovated, and plenty of people have started leasing apartments for longer and shorter time periods. Plenty of tourists are coming to Pirot, whether from Bulgaria, or the rest of Serbia. Stara Planina was discovered during the coronavirus period. But even disregarding that, there’s not one day when you can find free accommodation capacities in our hotels, which is truly curious.

eKapija: The Pirot area has also been known for decades for its cultural and gastronomic heritage, which also makes it specific. Are there any steps being taken at the moment that concern including those “specificities” of Pirot on the national or the UNESCO Intangible Cultural Heritage lists?

– We have developed gastronomic and religious tourism, we promote trekking tours, Stara Planina and its features, waterfalls, food. We also have events such as the Pressed Sausage Fair, the Cheese Festival, the Pirot Carpet Fair. We have renewed the Pirot carpet exhibition. We have obtained geographic origin protection designations for our brands of hard yellow cheese, carpets and pressed sausage, and we also subsidize the production of all these products and these fairs. Our tourism organization is very good and I believe that it is one of the factors of the development of Pirot, tourism in general and sports tourism. Because, we have built good sports facilities, such as pools. For example, this year, the outdoor pool has been visited by 90,000 visitors.

eKapija: At the moment, due to the election, you are the president of the Temporary Organ. If you are re-elected mayor, what will be in focus when it comes to solving the problems in the city and carrying out bigger projects which the city is responsible for?

– When it comes to sports and tourism, what remains to be done in the coming period is to reconstruct the stadium and to build another hotel within the stadium. In fact, to become what we’ve wanted and what we’ve promoted as a goal, which is to make Pirot a sports and tourism center of this part of Serbia.

Vlada Republike Srbije

Ministarstvo privrede Republike Srbije

Ministarstvo finansija Republike Srbije

Republički Fond za penzijsko i invalidsko osiguranje

Nacionalna služba za zapošljavanje Kragujevac

RDZI Direkcija za imovinu Republike Srbije Beograd

Tigar Tyres doo Pirot

Grad Pirot

Tigar a.d. Pirot

POLET PIROT

SINIŠA NIKOLIĆ-DRAGOŠ PIROT

PIROTEX PIROT

Slobodna zona Pirot ad Pirot

Industrija odeće Prvi maj a.d. Pirot- u stečaju

Decathlon d.o.o. Beograd

Turistička organizacija Pirot

Vladan Vasić

Michelin

Polet Pirot

Dragoš Pirot

Pirotex Pirot

Prvi maj ad Pirot

Decathlon

Visočka Ržana

Rsovci

Sofia

Zvonačka banja

tunnel Sarlah

war in Ukraine