Serbia runs along Gazprom towards “South Stream”, Russian banks interested to credit works in Balkan regions

4. March 2013. / News Serbia Energy

Expropriation of 8.000 hectares of land for the pipeline “South Stream” through Serbia will cost 24 million EUR.

10.000 parcels are planned to be evacuated urgently because the law, that will announce this project as national, will be adopted in Parliament at the end february.

Market price for land buyout will be determined by tax administration and authorities announce that the price will be fair. Assets have already been provided, but they say that there will be no bargaining considering the fact that this is strategic project.

Director of “Srbijagas” announces “the big competition in the region” for construction of gas power plants competed by Croatia, BiH and especially Republika Srpska. He stresses that Serbia will apply for 4 gas plants. These projects worth not less than 1,5 billion EUR what represent 3,5 billion EUR of possible investments together with 2 billion for the “South Stream”.

No one wants to predict when the construction of first compressor station in Serbia will officially begin. Preparations for the realization of the most expensive European project at the moment are in progress for a very long time. The spatial plan of this structural corridor is finished, accession roads are being worked on, compressor stations are projected, demining and geodetic research have been done and logistics is being solved.

According to the words of Dusan Bajatovic, Director of “Srbijagas”, this company’s workers are already visiting parcels’ owners and 4.000 of them have already agreed to sell their land to the state. Expropriation request can be submitted 3 days after the law enforcement day, the latest. User will be the “South Stream” Company from Novi Sad that will acquire the right on land property 7 days after the issuing the law.

75 million EUR will be provided for this project.

The part of this money will be used for expropriation and the part for accession works- Bajatovic says.

-The rest of the money will be acquired from credits. We have confirmation that Russian banks are ready to invest in “South Stream” construction in Serbia. The invitation is valid for all interested creditors and we’ll decide which of them offers best conditions. Construction permission has not been issued yet, but we expect to get it soon.

Director of “Gasprom”, Aleksey Miller will maybe come to Serbia at the end of January and the talks about the project will be held then- it was announced from “Srbijagas”.

-We hope that the final agreement for long-term tenders scheduling for compressors and pipes supply will be made soon- Bajatovic claims.

-We will begin with agreement in June, when the specification of Serbian companies’ abilities is finished so there will be more Serbian companies included in this job.

Director of “Srbijagas” announces “the big competition in the region” for construction of gas power plants competed by Croatia, BiH and especially Republika Srpska. He stresses that Serbia will apply for 4 gas plants. These projects worth not less than 1,5 billion EUR what represent 3,5 billion EUR of possible investments together with 2 billion for the “South Stream”.

“South Stream” brings safer gas supply for Serbia, large earnings from Russian Energy transit and employment for domestic work force so we can conclude that this project is very meaningful for Serbia. Highway pipeline will be about 415 km long through Serbia. Length for Croatia is 56 and 100 for Republika Srpska. Our country will earn 500 million a year only from transport and tendencies related to price and gas delivery can only contribute the income.

Source Serbia Energy/Agencies

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