All conditions for 600km line of “South Stream” Serbia network construction are accomplished, says Bajatovic CEO Srbijagas

21. May 2013. / News Serbia Energy

Director of Srbijagas Company, Dusan Bajatovic, announced that all conditions for construction of this international gas pipeline are achieved in Serbia i.e. pipes’ settlement and the project will begin in the end of this year.

Bajatovic has signed a contract for making changes and editions in spatial plan for special use in regard to South Stream network in Serbia with Acting Director of Republic Agency for Spatial Planning Dragan Duncic.

We have all required documents that lead to launching of “South Stream” construction in the end of 2013, with this document. He underlined that track is completely defined as for South Stream so for interconnections toward Croatia and Republika Srpska.

Bajatovic said that all problems are solved so issuance of more than 70 location licenses for different purposes can begin.

Srbijagas has delivered ideological project which has a good grade and general project will be delivered until 30 Jun, so tenders for pipes and compressors’ supply will be announced very soon.

“We can talk about South Stream getting construction license for Serbia in autumn”, Bajatovic said. He presented a line for Serbian Sector of South Stream, that will enter near Zajecar and Sombor i.e. Backi Breg.

Branch toward Croatia will be near Gospodjinci and branch toward Republika Srpska near Belgrade- Bajatovic explained and précised that both capacities separately will be around 2 billion cubic meters a year.

Bajatovic stressed that there are no contracts that refer to the subject of “South Stream” at this very moment.

When he was asked by journalists if income from “South Stream” will be transferred in off shore zone, he said that something like this is possible to happen but only with founding parties approval.

Seat of the South Stream Company is in Cug in Switzerland, but all this company can do according to the contract without approval from Serbian side is that 250.000 EUR can be spent on annual level maximum- Bajatovic underlined.

When he was asked when money from “South Stream” can be expected, Bajatovic said that all assets “South Stream” earn in the first phase will be used for turning credit back and shareholders Srbijagas and Gasprom can decide for the income in the second phase.

Bajatovic said that he cannot confirm or deny that Russian President Vladimir Putin will come to the ceremony for pipeline construction launching in Serbia.

“If Serbian Government and President call Putin and he estimates that he need to come to the opening of one such a good project, I suppose it will happen”, Bajatovic said.

Acting Director of Republic Agency for Spatial Planning Dragan Duncic has reminded that Serbian Government had adopted spatial plan for South Stream at the end of 2012 and that conditions for plan edition were made in the beginning of 2013, as he explained, branches toward Croatia and Republika Srpska i.e. BiH.

This plan will enable Srbijagas to solve property-legal issues on 75 locations on 600 km long track together with electricity cables- Duncic said after signing the contract in NIS-Gaspromneft business center in Novi Sad.

Srbijagas will give its version of reconstruction

Srbija gas will give its version of this company reconstruction soon and this document will be discussed by Serbian Government, Director of Srbijagas, Dusan Bajatovic, stated today.

“Reconstruction of Srbijagas won’t be discussed in Serbian Government”, Bajatovic said and stressed that there is no threat. Reconstruction plan in Srbijagas has been doing for two years so far.

Bajatovic said to journalists at the end that Government need to decide.

Serbian Minister of Energy Zorana Mihajlovic has stated to Tanjug earlier that this Ministry had gotten positive opinions from other ministries in Serbian Government about reorganization plan for Srbijagas and it is expected to be adopted quickly.

Srbijagas has more than a billion EUR worth loss at the moment and this need to be compensated and we suppose to see how this lacks occurred but also enable company to function- Minister said and stressed that there is a clear will of state to have efficient and profitable corporation.

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