Mihajlovic: Law on capital projects to speed up investments

BELGRADE - Serbia's Minister of Construction, Transport and Infrastructure Zorana Mihajlovic said Wednesday that a systemic law on capital projects is being prepared, with an aim to speed up the realization of investments of national interest.

"We need a systemic solution to the issue of project delays and the streamlining of all projects of national interest. Our decision is to draft a systemic law on capital projects," Mihajlovic told Tanjug, adding that the draft is already being prepared and should be completed very soon.

Most capital projects of great significance for Serbia are running behind the schedule, such as Corridors 10 and 11, the bridge across the Danube in Novi Sad, and others.

The reason for the delays lies in low-quality projects and project plans that require the engagement of review committees, as well as the issue of expropriation, said Mihajlovic.

The modernization of Belgrade-Budapest railway, the construction of over 10,000 housing units, new production plants with an investment value exceeding EUR 100 million, dams, roads, railways, and other projects of national interest should not be covered by separate laws as was the case so far, the minister said.

The aim is to introduce one law that would regulate all capital projects, provide a systemic solution to the issue of their realization and prevent all further delays and additional costs, she added.

One of the obligations that Mihajlovic insisted should be included in the new law is to engage a percentage of local construction firms to work on the project.

"Of course, the law is drafted in line with the EU regulations," stressed Mihajlovic.

The delays in the realization of capital projects are causing Serbia to lose its...