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China-Serbia Cooperation: News & Dicussions

Chinese investment in Serbia will be 10 bln dollars
By
InSerbia with agencies
-
Apr 27, 2017
SOURCETANJUG, TELEGRAF
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Chinese Ambassador to Serbia Li Manchang said that Serbia used the opportunity to improve cooperation with China announcing that the total volume of Chinese investment in the current and announced projects will be 10 billion dollars.

“Some other countries in the Balkans have shown ‘envy’ towards Serbia, which took the opportunity to promote cooperation with China. I think that Serbia has taken the lead in this regard and that other European countries may follow this path,” Li said in an interview for “China Daily”.

It is, as he says, mainly due to the fact that the Serbian leadership understood the importance of the initiative “Belt and road”, and the two sides in 2015 signed a memorandum of cooperation.

Li pointed out that the Prime Minister and newly elected President of Serbia Aleksandar Vucic and the current head of state, Tomislav Nikolic repeatedly stressed that the initiative proposed by Chinese President Xi Jinping 2013 will help the world economy out of stagnation after the global financial crisis in 2008.

“So, a leading Serbian leaders have called for their country to take advantage of the opportunity to find synergies with the initiative,” said Li.

Recalling that the bridge from Zemun to Borca over the Danube is the first Chinese bridge in Europe, Ambassador Li said that the reconstruction of the railway line between Belgrade and Budapest will be the first that the Chinese will work on on the old continent.

This project will start, as is expected, during the year because the European Commission has finished checking the loan agreement.

According to Li, the Chinese companies are currently involved in the construction of highway and power plant in Serbia and the Belgrade bypass.

They are also working to improve facilities for the treatment of waste water and district heating network, a few Chinese companies are competing to win a contract on the project of building the plant, and the total value of the investment is 900 million dollars.

After signing a memorandum of cooperation, the two sides hope to sign a contract until the end of the year so the work could begin the next year, said Li.

China Daily reports words of the Minister of Foreign Affairs Ivica Dacic, Vucic will lead the Serbian delegation at the Forum on International Cooperation “Belt and road” to be held in June in Beijing, saying that it testifies to the importance that our country attaches to the initiative of a global character.

Dacic said that Serbia wants as closer connection with the world and that in this context Serbia wants even greater momentum of cooperation with China in terms of investment in infrastructure so Serbia could become an important regional transport hub, according to the Chinese list.

https://inserbia.info/today/2017/04/chinese-investment-in-serbia-will-be-10-bln-dollars/

Congratulations for Both, China and Serbia :toast_sign:
 
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China's Hesteel Group to Boost Investments in Serbia’s Smederevo Steel Mill
By bne IntelliNews May 16, 2017

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Smederevo Steel Works. Author: Zelezara Smederevo.

Representatives of China's Hesteel Group, which acquired Serbia’s only steel mill Zelezara Smederevo in July 2016, plan to invest further into equipment at the factory, Serbia’s Prime Minister and president elect Aleksandar Vucic said during a visit to China on May 16.

The acquisition of Zelezara Smederevo (now renamed Hesteel Serbia Iron & Steel) by the Chinese giant was crucial for the survival of the regional economy since the steel mill directly employs more than 5,000 people. It is also Serbia's second-largest exporter, with exports valued at €120.3mn in January-March. Above all, the acquisition was an important step towards stronger ties between the two countries.

“We are very grateful for what the province of Hebei and company Hesteel did for the Smederevo steelworks and for Serbia,” Vucic said after a meeting with the governor of the Hebei province Xu Qin, the Serbian government reported.​

“I’m happy about the successful cooperation of Hesteel steelworks, which is located in the province of Hebei, and the Smederevo steelworks. This project is a good foundation for our even better future cooperation,” Xu commented during his meeting with Vucic.​

Hesteel representatives informed Vucic that they are satisfied with their business operations in Serbia and that they have not had losses since December, according to the government’s statement.

“This business cooperation is a true example within the framework of One Belt, One Road," Vucic said, expressing gratitude to President of China Xi Jinping for his support.​

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Xi paid a three-day visit to Belgrade in June 2016 which was seen as a huge step ahead strengthening of the bilateral cooperation. He also visited Smederevo, where several thousands citizens gathered to cheer him for saving their jobs.

Vucic and other Serbian officials are currently paying an extended visit to China aimed at further improving bilateral ties as well as attracting additional Chinese investments. They initially came to attend the Belt and Road Forum for International Cooperation in Beijing on May 14-15.

Another member of the Serbian delegation to China, Minister of Construction, Transport and Infrastructure Zorana Mihajlovic, signed a $297.6mn loan deal with Chinese Exim Bank on financing the reconstruction and modernisation of the first section of Belgrade-Budapest speed railway on May 16. The preferential loan is designated for modernisation of the section of double track railway from the capital Belgrade to the northern town of Stara Pazova.

The high-speed 350km rail link is expected to cut travel time between Budapest and Belgrade by more than half, from the current eight hours to less than three. The project is part of Beijing’s aim to create a fast lane for importing and exporting products between China and Europe. The Balkans is a key part of this corridor, as it is on the transit route between the Greek port of Piraeus, recently taken over by China’s COSCO, and Central Europe. The route will run 184km across Serbia and 166km across Hungary and passenger trains will travel at 160km per hour.

Read the article at
http://www.intellinews.com/china-s-...ents-in-serbia-s-smederevo-steel-mill-121628/

Earlier news links about the steel mill
https://seenews.com/news/serbias-sm...nagement-contract-with-hpk-engineering-530484
https://seenews.com/news/chinas-hes...ership-of-serbias-smederevo-steel-mill-531315
http://news.xinhuanet.com/english/2017-01/20/c_135999501.htm
http://www.balkaninsight.com/en/article/all-eyes-on-china-in-serbian-steel-mill-town-06-20-2016
 
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China's Huawei to start offering Smart City solution in Serbia
Author Radomir Ralev May 15, 2017 13:49 CEST
Source: Serbian Government


BELGRADE (Serbia), May 15 (SeeNews) - Serbia's government said Chinese telecommunications equipment and services company Huawei plans to start offering its Smart City ICT solution in Serbia.

Huawei has also proposed to the Serbian government the possibility of delivering its eGovernment Cloud Solution, which would combine the data and telecommunication infrastructure of all governmental institutions, the government said in a statement on Sunday following a meeting of prime minister Aleksandar Vucic with Huawei officials.

At the meeting, the Serbian government and Huawei signed a strategic partnership deal for the joint development of information and communication infrastructure in educational institutions.

Huawei’s Smart City Solution incorporates cloud, network, and platform technologies to sense, analyse, and converge key data from city operations and management systems so that managers can intelligently respond to a variety of governance, livelihood, and business needs.

https://seenews.com/news/chinas-huawei-to-start-offering-smart-city-solution-in-serbia-568621


Huawei becomes Serbia's strategic partner in education
Serbia and Huawei have signed an agreement on strategic partnership for development of information and communication infrastructure in educational institutions.
Source: B92 Monday, May 15, 2017 | 11:35

The agreement was signed in Beijing by the Serbian minister of Education, Science and Technological Development and a representative of Huawei, with Prime Minister Aleksandar Vucic in attendance, the Serbian government announced.

"In the era of digitization, our cooperation means a lot for Serbia. Company Huawei has proved to be a relevant partner to the Serbian government and we hope that our successful cooperation will continue,"
said Vucic.
Huawei has around 180,000 employees and invests USD 11 billion into its development center. The development of e-administration is one of the priorities of the government and the Ministry of Public Administration and Local Self-Government - "the most important part is improvement and linking of registers and e-services for citizens and companies," the government said.
Huawei also presented the possibility of cooperation on establishing Government Cloud, which would unify in one place the infrastructure of data and communications for all state bodies and offer all kinds of applications that are necessary to state bodies for their functioning.

The company will also work on the development of the Safe and Smart City system in Serbia.

Vucic also attended the signing of memorandums of understanding and cooperation on the project Belgrade-South Adriatic, Preljina-Pozega and Pozega-Boljare highway sections, and on the project to build Novi Sad-Ruma expressway.

A protocol on cooperation was signed by the City of Belgrade and China's CBRC company develop a Sino-Serbian industrial park.

Vucic said he was satisfied with cooperation with CBRC so far.

"The construction of railroads, roads and bridges is ahead of us, and your companies proved to be a natural ally for the construction of road infrastructure. We are very satisfied with our cooperation. The construction of the Belgrade-Budapest railway, which Chinese President Xi Jinping also described as a priority for the One Belt, One Road initiative, will represent a new standard for citizens of our country,"
he said.​

He underlined that the Preljina-Pozega road section, which is 31 kilometers long, is equally important to the Serbian government.

"We hope we will soon sign the agreement for this part of Corridor 11 too," Vucic concluded.​

http://www.b92.net/eng/news/business.php?yyyy=2017&mm=05&dd=15&nav_id=101269
 
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China donates military equipment to Serbian Army
Source: Xinhua| 2017-06-20 21:34:00|Editor: Mengjie


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Serbian President Aleksandar Vucic views Chinese military equipment in Pancevo, Serbia, June 20, 2017. China on Wednesday donated to Serbia military equipment worth 900,000 euros (1 million U.S. dollars). (Xinhua/Wang Huijuan)

PANCEVO, Serbia, June 20 (Xinhua) -- The Serbian Army on Tuesday received military equipment worth around 900,000 euros (1 million U.S. dollars) donated by China.

A total of 16 rubber boats with outboard engines, five snowmobiles and 10 portable devices for detecting explosives and narcotics were donated to the Serbian army at the military barracks in Pancevo.

Attending the ceremony were Serbian President Aleksandar Vucic, Defense Minister Zoran Djordjevic and Chinese ambassador to Serbia Li Manchang, as well as army officials, officers and soldiers.

Djordjevic said it was not the first time that China had donated to the Serbian army as "they were here during floods, and always when our people needed it".

"This is just one of many donations. So far, around 4.95 million euros were realized this way," Djordjevic said.

The Serbian government said in a statement China had donated 1.5-million-euros worth of information technology (IT) equipment and 20 ambulances. After the 2014 floods in the country, China had also donated 355,000 euros in equipment and aid.

Ambassador Li said the new donation was an expression of friendship between Chinese and Serbian armies and that Chinese people would always remember that the Serbian army appeared as a participant two years ago at a grand parade in Beijing.

Vucic thanked China for the donation as well as for the country's support to Serbia in past years.

"I am proud of the fact that we have managed to achieve such good relations with China, and, although we are a small country, we are a reliable and a secure partner of China," Vucic concluded.
 
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Chinese companies eye RTB Bor, e-car production in Serbia

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Vucic and Manchang; Source: Serbian Presidency

BELGRADE (Serbia), June 21 (SeeNews) – China's ambassador to Serbia Li Manchang said two Chinese companies are interested in the privatisation of copper miner and smelter RTB Bor, as one of them also intends to set up a joint venture for the production of electric vehicles in the country.

One of the interested companies is based in the province of Hunan and operates the biggest gold mine in China, Manchang said in a video file posted on the website of Serbian news agency Tanjug on Tuesday.

The other company is interested both in the privatisation of RTB Bor and the establishment of a joint venture in Serbia for the production of electric vehicles to be exported to Europe, Manchang said.

Representatives of both companies will visit Serbia in the beginning of July, he noted.

Chinese companies are also interested in the privatisation of Serbian agricultural company Poljoprivredna Korporacija Beograd (PKB), Manchang added.

In November, Serbia's economy ministry said the government is trying to strike a deal that will allow a big Chinese company to enter RTB Bor, as was the case of steel group Zelezara Smederevo.

- See more at: https://seenews.com/news/chinese-co...duction-in-serbia-573052#sthash.p9U4GbBA.dpuf

Chinese rubber company to invest 500 mln euro in Serbia - President Vucic

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License: Creative Commons CC0

BELGRADE (Serbia), June 21 (SeeNews) – Serbian president Aleksandar Vucic said a Chinese rubber company plans to invest some 500 million euro ($557.4 million) in Serbia.

The Chinese company plans to build a rubber factory in Serbia and nearly all the details on the project have already been agreed, Vucic said in a video file posted on the website of news agency Tanjug on Tuesday.

The investor is the fourth biggest rubber company worldwide and its president will arrive in Serbia on June 22, China's ambassador Li Manchang said in a separate video file on the website of Tanjug.

Vucic and Manchang did not reveal the name of the company.

Zhongce Rubber Group Co is the biggest tyre manufacturer in China and one of the top 10 manufacturers globally, data from its corporate website shows.

- See more at: https://seenews.com/news/chinese-ru...a-president-vucic-573027#sthash.IfZsRBWv.dpuf

Energy: Belgrade signs MoU with Chinese company

The Serbian Ministry of Mining and Energy, the City of Belgrade and the Nikola Tesla Thermal Power Plant signed a Memorandum of Understanding stipulating construction of Obrenovac-Novi Beograd heat pipeline with the Chinese company, Power Construction Corporation of China.

The Minister of Mining and Energy, Aleksandar Antic said that using this heat pipeline, Serbia would save 43 million EUR annually on importing gas used by the Belgrade Heating Plants.

The minister added that the project was economically justifiable and very important since it would provide additional security in terms of energy supply. The next step is to negotiate with the Chinese companies about the loan and financing terms. When asked whether the Memorandum would be abandoned if the financing terms were not favourable, Antic answered positively.

The value of this project is estimated at 200 million EUR, and it is considered environmentally friendly.

– Considering that the project is supposed to substitute a third of the import of gas, a little over EUR 40 million, the project worth EUR 200 million would pay off in 5-6 years – Belgrade Mayor Sinisa Mali said and reminded that the Detailed Regulation Plan for the area had already been adopted.

The details of the cooperation are yet to be agreed, but it is expected that Chinese companies will be contractors and structural designers, whereas the realization would be financed by the Chinese government.

– We will talk to the Chinese about the need for the project to be commercial – Mali said and added that the position of Chinese companies was to do everything they can in cooperation with Serbian ones.

http://serbianmonitor.com/en/econom...-signs-mou-with-chinese-company/#.WUuBZlFLepo

Meat export: Chinese CMEC launches a project in Kragujevac

Following a statement made by the Minister of Agriculture, Branislav Nedimovic that Serbia would be able to „export beef to China in unlimited quantities very soon after several details have been taken care of“, Kragujevac is gearing up for a huge investment by the Chinese state-owned corporation, CMEC which has already established a company here that would deal with wholesale trade of meat and meat products.

„The Memorandum of Understanding that the town of Kragujevac and CMEC signed in December 2015 stipulates that this project, which is expected to kickstart the cattle breeding industry in the county of Sumadija, will be implemented in two stages. The Chinese would first buy heads of cattle from the farmers and slaughter them in certified abattoirs at first. They are also planning to build their own, large-scale abattoir in Cerovac near Kragujevac along with an experimental farm and an educational centre for our cattle breeders. The feasibility study, commissioned by the Chinese company has shown that this project is profitable and can be implemented with Sumadija’s capacity for cattle breeding being around 120,000 heads of cattle. This is enough for production fo 50,000 tonnes of meat. The problem is there are only 30,000 heads of cattle in Sumadija, at the moment, which is four times less than the prospective capacity“, says Damjan Srejic, a member of the Kragujevac City Council for Agriculture.

In an attempt to find as many potential partners as possible, i.e. cattle breeders, the town of Kragujevac has established a cooperation with other regions in Serbia in the last year and a half, primarily with Raska and Rasinski counties which are well-known cattle breeding areas.

„We have contact details for dozens and dozens of livestock breeders in Serbia who are willing to get involved in this huge project. The Chinese are offering several cooperation formats, and favourable loans for purchase of cattle. Also, the Centre for Agriculture and Rural Developed, founded by the city authorities, is at the full disposal to cattle breeders“, Srejic adds.

The aforementioned study, commissioned by CMEC, was conducted by Deloitte.

http://serbianmonitor.com/en/econom...mec-launches-project-kragujevac/#.WUuBjVFLepo

First Belgrade-Beijing flight on 15 September

Beijing-based Hainan Airlines will launch its first Beijing-Belgrade via Prague flight on 15th September. The first plane from Beijing is supposed to land at Belgrade’s Nikola Tesla Airport at 9:20am, and leave for Beijing two hours later.

The Chinese airliner is still waiting for all the required permits for the Prague-Belgrade flight, and once that is settled, the tickets will be on sale – the Ex-Yu Aviation website finds out. Hainan Airlines plans to have Belgrade-Beijing flights twice a week – on Mondays and Fridays.

The airplane that will be used for this flight is Airbus A330-200/300 which has 292 seats – 260 in Economy and 32 in Business class. This type of plane is already used on Beijing-Prague flights. The Chinese company also says that they might use Boeing 787 Dreamliner. Additionally, Hainan Airlines has acquired a permit to fly from Beijing to Belgrade via Prague three times a week.

Serbia has been waiting for quite some time for this flight to launch, and the layover in Prague is only a temporary solution. Currently, it takes Hainan ten hours to fly from Prague to Beijing.

Hainan Airlines was established 23 years ago, and so far, the company has had over 5 million hours of flying. The Jet Airliner Crash Data Evaluation Centre (JACDEC) has thrice ranked the airliner one of the safest in the world. Hainan mostly has Boeings 737 and 787 and Airbuses 330 in its fleet which numbers 162 planes for passenger and cargo flights.

http://serbianmonitor.com/en/economy/35359/first-belgrade-beijing-flight-15-september/#.WUuBKFFLepo

Five bidders for Nikola Tesla Airport concession qualify for second round

Four consortia and one company have qualified for the second round for the allocation of concession for Nikola Tesla Airport as they will now have to submit binding bids.

These are a Swiss-French consortium (Meridiam Eastern Europe Investments, Zürich Airport and Eiffage), an Indian-Greek consortium (GMR Infrastructure Ltd and Terna), the French company Vinci Airports, a South Korean-Turkish-Cypriot consortium (Incheon International Airport Corporation, JC Ictas Altzapi Yatirimlari ve Islatme and VTB Capital Infrastructure), and the consortium of Chinese companies (Hainan Air Travel Service, HNA and China National Aero Technology).

This year, Nikola Tesla Airport is celebrating two jubilees – 55 years since its foundation and expected 5.5 million passengers until the year end.

“We have raised the bar pretty high because we expect to have 5.5 million passengers by the end of this year which is quite symbolic because we are celebrating our 55th anniversary too. Since the beginning of this year, a total of 1.35 million passengers used the airport services which is a 12% hike compared to the same period last year”, said acting CEO of Nikola Tesla Airport, Sasa Vlaisavljevic.

Since the beginning of the summer season, the annual capacity of the Belgrade airport will go up to 7.5 million passengers once the new Terminal 2B opens which will have the latest equipment for passenger and luggage check-in.

Nikola Tesla Airport, located 17 kilometres (10 miles) from Belgrade’s city centre, serviced 4.92 million passengers in 2016. Between January and September 2016, it reported a net profit of 2.4 billion Serbian dinars ($21.24 million), a 13 percent increase from 2015.

Under terms of the offer, prospective bidders, companies or consortia, must not have more than a 20 percent stake in another airport within 450 kilometres of Nikola Tesla, with passenger numbers above 1 million in 2016.

http://serbianmonitor.com/en/econom...ession-qualify-for-second-round/#.WUuBMFFLepo
 
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Chinese interested in manufacturing electric cars in Serbia
China's ambassador to Serbia Li Manchang announced on Tuesday that a Chinese company that wishes to open an electric car factory would soon arrive in Serbia.

Source: B92 Tuesday, June 20, 2017 | 17:02

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Speaking in an army barracks in the town of Pancevo, where he presented a Chinese donation worth around EUR 900,000 to the Serbian Army, Li mentioned three large Chinese companies that will arrive here.

The first is a tire manufacturer, "the fourth largest in the world."

"This company's director will arrive in Belgrade from Frankfurt on June 22, at midnight," the diplomat said. Reacting to this, President Aleksandar Vucic, who accompanied him today, remarked, "I've received Turks after one o'clock, I'll receive the Chinese at half past 11, 12."

The second company, Li continued, is coming from the Hunan Province, where they operate a gold mine.

"This company's director has already been in Belgrade, and he keeps his promises," he said, adding that the company is interested in taking over the copper mining and smelting complex RTB Bor, located in eastern Serbia.

"The third company wants to come to Serbia and together with a Serbian partner open a joint company that would manufacture electric cars, which would be sold worldwide," Li concluded.

Vucic responded by saying this would be "a fairytale" for Serbia.


http://www.b92.net/eng/news/business.php?yyyy=2017&mm=06&dd=20&nav_id=101597
 
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Serbia signs 190 mln euro heat pipeline deal with Powerchina

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Mali during the signing ceremony; Source: Belgrade City Government

BELGRADE (Serbia), November 28 (SeeNews) – Serbia's government said it has signed an agreement with Power Construction Corporation of China (Powerchina) for construction of a 28 km-long heat pipeline.

A total of 190 million euro ($226.3 million) will be invested in the construction of the heat pipeline, which will connect Termoelektrane Nikola Tesla (TENT) power plant and Novi Beograd thermal power plant, the government said in a statement late on Monday.

The agreement was signed by Belgrade mayor Sinisa Mali, the director of power utility company Beogradske elektrane, Goran Aleksic, and a representative of Powerchina in the framework of the sixth Meeting of Heads of Government of China-Central and Eastern European Countries (CEEC) initiative, known as the 16+1 mechanism, held in Budapest, Hungary.

On Sunday, the government said it expects the state-owned Beogradske elektrane to cut annual costs by 45 million euro after the heat pipeline enters into service. Beogradske elektrane will be able to repay a loan extended by the Chinese government for the construction of the heat pipeline through the costs saved, energy minister Aleksandar Antic said.

The pipeline will enable Beogradske elektrane to use steam generated at the TENT power plant for production of electricity at the Novi Beograd power plant instead of imported natural gas, Antic said.

- See more at: https://seenews.com/news/serbia-sig...l-with-powerchina-592587#sthash.BDJuwZZb.dpuf

Shanghai Electric to build gas-fired TPP in Serbia

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Aleksandr Varnavsky and Yi Xiaorong, the President of Shanghai Electric Group, during the signing of the contract; Source: NIS

BELGRADE (Serbia), November 1 (SeeNews) - Serbian oil group NIS [BEL:NIIS] said it signed a contract for the construction of a 200 MW gas-fired thermal power plant (TPP) in Pancevo, in northern Serbia, with China-based Shanghai Electric Group.

Shanghai Electric Group won a tender for the project, competing with companies from Greece, Austria, Switzerland and China and will start the construction of the TPP in the second quarter of 2018, NIS said in a statement on Tuesday.

A total of 180 million euro ($209.4 million) will be invested in the construction of the power plant, as the bulk of the funding will be provided by Gazprom, the majority shareholder of NIS, the Serbian oil group said.

"Reliability of electrical and heat power supply to Pancevo refinery and additional volumes of electrical power to be placed on the market will ensure the required energy stability for the country’s citizens," the CEO of NIS, Kirill Tyurdenev, said in the statement.

The heat installed capacity of TPP Pancevo will amount to 121 Gcal. The power plant will be built within an unprecedentedly short period and the planned plant start-up is scheduled for the fourth quarter of 2019, the director of the plant's operator, TE-TO Pancevo, Aleksandr Varnavsky, said.

In 2015, NIS said a joint venture with Gazprom Energoholding's unit Tsentrenergoholding plans to build of a 140 MW gas-fired TPP in Pancevo. Tsentrenergoholding owns a 51% stake in the joint venture and NIS holds the remainder. There is a possibility to expand the TPP in the second phase and in that case, its capacity would be raised to 208 MW, while the investment would go up to 183 million euro, NIS said back then.

Russia's Gazprom Neft controls 56.15% of NIS, while the Serbian government owns a 29.87% stake.

- See more at: https://seenews.com/news/shanghai-e...red-tpp-in-serbia-589370#sthash.Uj0iuDau.dpuf

450mln EUR impetus to infrastructure projects at 16+1 summit

A commercial contract stipulating construction of a new motorway stretch between Preljina and Pozega on the Corridor 11, worth 450 million EUR, has been signed in Budapest at the summit organized by China and 16 countries from Central Europe that make the 16+1 initiative.

Serbian Deputy PM and Minister of Construction, Zorana Mihajlovic, acting director of Putevi Srbije (Serbian Roads), Zoran Drobnjak and Vice President of the Chinese company, CCCC Ltd (China Communications Construction Company), Sun Ziu signed the contract that covers the construction of this 30,9km long stretch.


This project has a great importance in terms of connecting Serbia to the region, because it is an extension of the Corridor 11 in the direction of Montenegro, and is a part of the future Belgrade-Sarajevo motorway. Bridges and tunnels make almost a third of the Preljina – Pozega stretch.

Following the signing, the Financial Times has reported that the EU is not that keen on the Central and Eastern European countries cooperating with China to this extent, saying that the EU officials suspect that official Beijing might use its projects in Europe, particularly the 16+1 Initiative, to undermine EU regulation and use the growing tension between the eastern and western part of the Union.

Hungary, for instance, sees the 16+1 Initiative as a way of „opening up to the East“, Serbia views it as „solidifying the Serbian-Chinese friendship“, while Poland describes it as „a huge opportunity“.

China has been working full steam on institutionalizing its cooperation with Eastern Europe, shaping the 16+1 initiative into a platform for its Belt and Road Initiative (BRI). This is turning into a stress test for EU cohesion.

To remind, 16+1 is an initiative launched by the People’s Republic of China aimed at intensifying and expanding cooperation with 11 EU Member States and 5 Balkan countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia) in the fields of investments, transport, finance, science, education, and culture.

http://serbianmonitor.com/en/featur...tructure-projects-at-161-summit/#.Wh8WuVWnGUk

Serbia, China open talks on financing of motorway project
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Brnabic and Keqiang during their meeting in Budapest; Source: Serbian Government

BELGRADE (Serbia), November 28 (SeeNews) - Serbia's government said on Tuesday it started talks with China on the financing of a project for the construction of a motorway from Belgrade to the border with Montenegro.

The negotiations started immediately after the signing of a 450 million euro ($534.9 million) agreement with China Communications Construction Company (CCCC) for the design and construction of a 30.9 km motorway section between Preljina and Pozega on Monday, the government said in a statement.

The construction works on the Preljina-Pozega section are expected to start next year, the government said after a meeting of Serbian prime minister Ana Brnabic with Chinese counterpart Li Keqiang on the sidelines of the sixth Meeting of Heads of Government of China-Central and Eastern European Countries (CEEC) initiative, known as the 16+1 mechanism, held on Monday in Budapest, Hungary.

In May, the Serbian government said it signed a memorandum of understanding (MoU) with CCCC for the construction of the Preljina-Pozega and Pozega-Boljare sections of the motorway. The total length of the motorway on the territory of Serbia will be 58 kilometres.

Back then, the infrastructure ministry said it signed MoUs for infrastructure works with a combined value of 2.5 billion euro with China Road and Bridge Corporation (CRBC) and CCCC. The MoU with CRBC envisages cooperation in the project for the construction of Fruskogorski Corridor, a 123 km-long road in Serbia's Vojvodina autonomous province that will link pan-European transport corridors X and IV.

- See more at: https://seenews.com/news/serbia-chi...-motorway-project-592628#sthash.GntdpDoR.dpuf

CMEC to build 260 mln euro wastewater treatment plant in Belgrade - city govt

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Mali after the signing ceremony in Budapest; Source: Belgrade City Government

BELGRADE (Serbia), November 28 (SeeNews) – The Belgrade city government said it has signed a contract with China Machinery Engineering Corporation (CMEC) for construction of a wastewater treatment plant in Serbia's capital.

A total of 260 million euro ($309.6 million) will be invested in the construction of the wastewater treatment plant, which will begin in the second half of 2018, Belgrade mayor Sinisa Mali said in a statement late on Monday.

The agreement also envisages the completion of the construction of the wastewater interceptor system of Belgrade, Mali said after the signing of the contract in the framework of the sixth Meeting of Heads of Government of China-Central and Eastern European Countries (CEEC) initiative, known as the 16+1 mechanism, held in Budapest, Hungary.

"When it comes to wastewater, they go to the Sava and the Danube, which is completely unacceptable, and we are almost the only city that does not have a wastewater treatment plant," the Belgrade mayor said.

In October, France's Suez said it signed an agreement to invest 300 million euro in the construction of a waste-to-energy facility with installed power production capacity of 25 MW and heat production capacity of 56 MW in Belgrade in consortium with Environment Investments Limited, a subsidiary of Japan's Itochu. The project will allow the city government to close and remediate the Vinca landfill.

- See more at: https://seenews.com/news/cmec-to-bu...elgrade-city-govt-592599#sthash.BaKIVMAx.dpuf

Huawei to support Serbia in developing e-govt system - PM Brnabic

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Ana Brnabic; Source: Serbian Ministry of Public Administration and Local Self-Government

BELGRADE (Serbia), November 28 (SeeNews) – Serbia's prime minister Ana Brnabic has said Chinese telecommunications equipment and services company Huawei has expressed interest towards supporting the country in developing a system of electronic government.

Huawei is interested in cooperating with the Serbian government in the digitalisation of the country's economy and support to innovations and start-ups, Brnabic said in a video file posted on the website of Tanjug news agency on Monday.

The cooperation with local administrations in Serbia is also an important objective for Huawei, as its Smart City ICT solution would significantly contribute to improving their energy efficiency, Brnabic said after a meeting with representatives of the Chinese company in the framework of the sixth Meeting of Heads of Government of China-Central and Eastern European Countries (CEEC) initiative, known as the 16+1 mechanism, held in Budapest, Hungary.

In May, Serbia's government said Huawei plans to start offering the Smart City solution in Serbia. The solution incorporates cloud, network, and platform technologies to sense, analyse, and converge key data from city operations and management systems so that managers can intelligently respond to a variety of governance, livelihood, and business needs.

- See more at: https://seenews.com/news/huawei-to-...system-pm-brnabic-592593#sthash.nxmJFzgx.dpuf

Sinvoz and Chinese CRRC Zhuhou Locomotive carry out overhaul of five trains for Srbijavoz - Contract totals EUR 3,48 m

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(Photo: branislavpudar/shutterstock)

Srbijavoz and a consortium comprising Shinvoz LTD Zrenjanin and CRRC Zhuhou Locomotive from China signed on Thursday, November 23, 2017, an agreement on the repair and modernization of five electric motors.

As stated by Srbijavoz, the value of this contract is EUR 3.48m and is funded through EBRD loan.

By repairing and modernizing these electric motors, as they say, there will be an increase in the number of sets for BG rail and regional traffic.

https://www.ekapija.com/en/news/195...-locomotive-carry-out-overhaul-of-five-trains

China starts on Serbia’s new coal-fired power plant

A Chinese company started work this week on a new 350MW unit at Serbia’s second largest coal-fired power plant, the first new power-generating scheme in the Balkan country in nearly 30 years.
Flooded coal mines have put Serbian power supply under pressure, and the $613m project is part of a package of deals between Serbia and China that includes expanding a nearby coal mine and boosting capacity at the Kostolac coal-fired plant complex (pictured).

The Export-Import Bank of China will provide 80% of the funding for the entire project of $715m through a 20-year loan while the Serbian government will secure the rest of the funds, Reuters reports.

China Machinery and Engineering Corp is building the unit, with completion expected in 2020.

Serbia needs to upgrade its energy infrastructure to meet rising demand, especially after a flood in 2014 affected a mine supplying its biggest coal-fired plant.

The country generates two thirds of its electricity from ageing coal plants and the rest from hydro power, Reuters said.

Other western Balkan countries including Bosnia, Kosovo and Montenegro also plan to build new coal-fired plants as old plants are being phased out, but, according to Reuters, environmentalists warn that this could eventually fall foul of EU environmental standards if the countries continue moving toward toward EU membership.

China has been targeting the non-EU Balkan countries with investment and construction projects, but its method of bi-lateral deal making with governments has met with some difficulty where projects stray into EU jurisdiction, where competitive tendering is required.

One such scheme, a railway between Belgrade in Serbia and Budapest in Hungary, is facing scrutiny by the European Commission for compliance with financing and procurement rules.

http://www.globalconstructionreview.com/news/china-starts-serbias-new-coal-fired-power-plant/

Hungary-Serbia railway launched at China summit

China's premier Li, Hungary's PM Orban and Burlagria's PM Borissov at the Budapest summit (Photo: kormany.hu)

By ESZTER ZALAN

BRUSSELS, TODAY, 09:30
A two-day economic summit in Budapest between China and 16 central and eastern European countries saw the launch of several investment projects, including a high-speed rail link, against the backdrop of EU concerns at Beijing's reach into the region.

As politicians and business leaders from China and 16 central and eastern European countries ended the summit Tuesday (28 November), with the participation of Chinese premier Li Keqiang, limits became visible in what the format is attempting to achieve.

The 16+1 format was born in 2012, but despite a permanent secretariat and yearly meetings, the format has yet to produce many tangible results.

"After five years, CEE countries are realising that there are limits to what can be achieved via this format. Trade can't be pushed up by politics only – and indeed, trade between China and CEE countries hasn't grown much faster over the period than with the rest of the EU," said Agatha Kratz with the European Council on Foreign Relations, a think tank.

"For Chinese investments, the main target is still western Europe. The investment trend is upward of course, but it has not delivered the growth and job boom expected," she added.

Chinese investment in the Central and Eastern Europe (CEE) region is over nine billion dollars (€7.5bn), up from three billion dollars in 2012, according to China's news agency, Xinhua.

One of the flagship projects of the cooperation, the 350km high-speed rail line from Belgrade to Budapest – with construction originally set to start in 2015 – might take off the ground soon.

Hungary announced on Monday it would publish a procurement tender for its section of the line, after a probe by the European Commission said the original design was not in line with EU rules.

The project was delayed because the EU probe looked into whether it follows the bloc's procurement rules, stipulating that public tenders must be offered for large infrastructure projects.

Serbia has reportedly borrowed $297.6 million from China's Exim Bank to modernise its section of the track out of the capital, Belgrade.

The $3.8bn project will eventually become the main gateway for Chinese goods shipped to Europe via the Greek port of Piraeus.

On Tuesday Belgrade formally launched the project, which will cut the current gruelling eight-hour ride to under three.

Heavyweights
The meeting underlines China's efforts in Europe, but also highlights eastern and central European countries' desire to be taken seriously.

"Every European country would like to participate in China's immense development," Hungary's prime minister Viktor Orban said at a joint press conference with Chinese premier Li on Tuesday.

"The cooperation is one more way for China to interact with EU countries, to tap into new markets, and link with countries that are eager to trade with it," Kratz told EUobserver.

"For eastern and central European countries, it is a yearly opportunity to exchange at the highest level with their Chinese counterparts, but also to shape EU-China relations more to their liking," she added.

However, concerns were raised at the creation of the format in 2012.

EU officials, refusing to sign up to the notion that the 16+1 is a threat to EU unity, said the cooperation complements the EU's overall policy on China, as long as it is compliant with EU rules.

"The role of the both Commission and EEAS [European External Action Service] is to support member states who belong to this format, it's 11 of them, and help them make sure that these activities are complimentary to what we do in EU-China relations," an EU Commission spokeswoman said on Monday.

Gunnar Wiegand, the managing director for Asia Pacific at the EEAS participated in the Budapest summit as an observer.

Kratz said politically, the cooperation allowed particular member states to diversify their foreign policy away from the EU.

Hungary's Orban – who has set out to create an 'illiberal democracy' – has been one of the champions of intensifying ties with China in the region.

Some point out that the relationship has already had political implications.

Along with some of the Nordic countries, central European states gave a cool welcome to France's initiative to screen strategic Chinese investments and takeovers in the EU.

"The cooperation is creating more debate at the EU level on what should be the EU's China policy. And in this debate, more weight is given to central and eastern European countries," Kratz said.

That weight can grow.

Kratz added "The EU's position on China's human rights violations could be weakened if a growing number of EU governments fear crossing Beijing".

"The election of more Orban-like leaders, who are keen to use China as a way to make a point about their relation to Brussels, could bring about increased challenges in EU-China relations," she said.

https://euobserver.com/eu-china/140068

Chinese considering building a wind farm in Nova Crnja

The smallest municipality in Banat County, Nova Crnja, has very ambitious plans for development and utilization of alternative energy sources, including wind farms, solar power plants and biomass facilities.

“Our municipality has allocated 1,000 hectares of land for building combined power plants that would use both the power of wind and biogas. Also, we plan to build solar power plants too, and we have drafted all the planning documents for that purpose”, says the president of the Nova Crnja municipality, Pera Milankov.


“Two years ago, we built a wind pillar to test the conditions for wind farms. As it turns out, the conditions are excellent and we are already negotiating with Chinese investors who are willing to build a 60-megawatt-wind farm here”, Milankov adds.

He says that there is a company that has already started building a biogas plant, of 1 megawatt capacity, here. Apart from renewable energy resources, the municipality also wants to focus on tourist development and is planning to build a thermal spa. “We can offer land to investors at the price of 9,000 EUR per hectare, while NIS will supply thermal water from the nearby well”, Milankov explains and reminds that Nova Crnja has six industrial zones with complete infrastructure which span on over 200 hectares of land.

http://serbianmonitor.com/en/invest...g-building-wind-farm-nova-crnja/#.Wh8ZGFWnGUk
 
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There were some large deals signed up in the last two months. First we had:

Serbia signs €943m rail deal with China’s CRI & CCCC

More investment news from emerging Europe: Serbia has signed a €943 million deal with China Railway International (CRI) and China Communications Construction Company (CCCC) to overhaul the 108.1km Novi Sad-Subotica section of the network linking Belgrade with Budapest.

https://industryeurope.com/serbia-signs-rail-deal-with-china’s-cri-cccc/

Then:

LINGLONG TIRE TO BUILD ITS SECOND OVERSEAS PLANT IN SERBIA

Shandong Linglong Tire Co will set up its overseas second plant in Serbia with an investment of $994.41 million.

http://tyre-asia.com/2018/08/29/linglong-tire-to-build-its-second-overseas-plant-in-serbia/

And the last big deal:

China’s Zijin wins race for Serbia’s largest copper mine

The $1.26 billion-deal, which gives Zijin a 63% stake in the asset, marks the latest expansion of Beijing’s economic footprint in the Balkan region.

http://www.mining.com/chinas-zijin-wins-race-serbias-largest-copper-mine/

It totals to some $3.2 billions.
 
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Another big deal in sight. Again it's Zijin:

China's Zijin offers $1.4 bln for owner of high-grade copper-gold project in Serbia

China's Zijin Mining Group has offered $1.41 billion (1.2 billion euro) to acquire Canada-based base metals company Nevsun Resources, which runs the Timok copper-gold project in Serbia, Nevsun said on Wednesday.

"Nevsun Resources and Zijin Mining Group today announced that the parties have entered into a definitive agreement pursuant to which Zijin will make a take-over bid to acquire all of the issued and outstanding shares of Nevsun for C$6.00 per share in cash," Nevsun said in a statement published on its website.

It added that its board of directors has unanimously recommended that its shareholders tender their shares to accept Zijin's offer. Last month, Nevsun said it recommended to its shareholders to reject the takeover bid of Canada-based Lundin Mining Corporation, as the offer failed to recognise the strategic value of the Timok copper and gold project in eastern Serbia.

In July, Lundin offered to pay C$4.75 ($3.6/3.1 euro) per share in cash to acquire all of the outstanding shares of Nevsun. "Nevsun is an exceptional operator, with a strong focus on safe, efficient and sustainable mining practices.

As the new owner we will continue that focus, and we look forward to working with stakeholders in Eritrea and Serbia to advance these mining and development assets," said Chen Jinghe, chairman of Zijin. Jinghe noted that Zijin intends to rapidly develop the Timok Upper Zone in Serbia and bring it into production, and continue to advance and define the world-class potential of the Lower Zone.

Nevsun Resources Ltd. is the 100% owner of the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower Zone in Serbia. The project comprises Brestovac-Metovnica, Brestovac Zapad, Jasikovo-Durlan Potok and Leskovo exploration permits that are held by Rakita d.o.o., a local subsidiary of Nevsun. The exploration permits cover an area of 212.58 sq. km.

Formed in 1993, Zijin is based in Fujian, China and is a leading global mining company specializing in gold, copper, zinc and other mineral resource exploration and development. Last week, Serbia picked Zijin as a strategic partner of state-run copper mining and smelting company RTB Bor.

- See more at: https://seenews.com/news/chinas-zij...project-in-serbia-625731#sthash.TQb0mQJ9.dpuf
 
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"Serbia enjoys China's unreserved support"

Serbian Defense Minister Aleksandar met on Friday in Belgrade with Chinese Ambassador Li Manchang.

SOURCE: B92 FRIDAY, AUGUST 10, 2018 | 16:14
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Li Manchang (R) is seen during his meeting with Aleksandar Vulin in Belgrade on Friday (Tanjug)


During his meeting, Vulin "expressed gratitude for the principled position of China and the unreserved support of Serbia on the issue of Kosovo and Metohija at the United Nations Security Council."

According to a press release published by the Serbian government, the minister also said that Serbia is conducting "an independent foreign policy, while being fully committed to military neutrality."

Vulin and Li "emphasized that personal relations of friendship and mutual respect between the presidents of Serbia and China, Aleksandar Vucic and Xi Jinping, have provided great contribution and accelerated cooperation between the defense ministries of the two countries."

Vulin reiterated that China is Serbia's strategic partner and one of the most reliable friends that our country has, remarking that the Serbian Ministry of Defense gives its full contribution to the excellent level of cooperation and relations between the two friendly countries.

The minister expressed his gratitude to the ambassador for the invitation to participate in an international security forum in China in October, that has been officially sent by the National Defense Minister of China Wei Fenghe.

https://www.b92.net/eng/news/politics.php?yyyy=2018&mm=08&dd=10&nav_id=104840

@proka89
 
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Shanghai Electric to build gas-fired TPP in Serbia

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Aleksandr Varnavsky and Yi Xiaorong, the President of Shanghai Electric Group, during the signing of the contract; Source: NIS

BELGRADE (Serbia), November 1 (SeeNews) - Serbian oil group NIS [BEL:NIIS] said it signed a contract for the construction of a 200 MW gas-fired thermal power plant (TPP) in Pancevo, in northern Serbia, with China-based Shanghai Electric Group.

Shanghai Electric Group won a tender for the project, competing with companies from Greece, Austria, Switzerland and China and will start the construction of the TPP in the second quarter of 2018, NIS said in a statement on Tuesday.

A total of 180 million euro ($209.4 million) will be invested in the construction of the power plant, as the bulk of the funding will be provided by Gazprom, the majority shareholder of NIS, the Serbian oil group said.

"Reliability of electrical and heat power supply to Pancevo refinery and additional volumes of electrical power to be placed on the market will ensure the required energy stability for the country’s citizens," the CEO of NIS, Kirill Tyurdenev, said in the statement.

The heat installed capacity of TPP Pancevo will amount to 121 Gcal. The power plant will be built within an unprecedentedly short period and the planned plant start-up is scheduled for the fourth quarter of 2019, the director of the plant's operator, TE-TO Pancevo, Aleksandr Varnavsky, said.

In 2015, NIS said a joint venture with Gazprom Energoholding's unit Tsentrenergoholding plans to build of a 140 MW gas-fired TPP in Pancevo. Tsentrenergoholding owns a 51% stake in the joint venture and NIS holds the remainder. There is a possibility to expand the TPP in the second phase and in that case, its capacity would be raised to 208 MW, while the investment would go up to 183 million euro, NIS said back then.

Russia's Gazprom Neft controls 56.15% of NIS, while the Serbian government owns a 29.87% stake.
Gazprom Breaks Ground On Serbian TPP
FSUOGM - Former Soviet Union Oil & Gas
13 March 2019, Week 10, Issue 1022

Gazprom Energoholding, the electricity arm of Russia’s state gas exporter Gazprom, has started construction on a new 200-MW gas-fired thermal power plant (TPP) in northern Serbia.

The project, now several years behind schedule, will provide cheaper supplies of heat to a nearby oil refinery controlled by Gazprom. It is also aimed at establishing demand for gas due to arrive in Serbia via the company’s TurkStream pipeline.

Serbian energy officials and Gazprom executives gathered in Pancevo on March 7 to attend a ground-breaking ceremony. The plant is due online in 2020 and will supply heat to the Pancevo oil refinery operated by Gazprom Neft’s NIS joint venture with the Serbian government. Its electricity will be sold to customers in Serbia and overseas.

Construction is slated to cost 180 million euros (US$203 million), Gazprom Energoholding’s head, Denis Fyodorov, told Russia’s Kommersant newspaper last week. The bulk of this sum is covered by a 140 million euro (US$158 million) loan from Gazprom’s financial unit, Gazprombank. The company expects to recoup its expenses within 10-12 years and earn a 14% return on investment, according to Fyodorov. China’s Shanghai Electric is serving as an EPC contractor, while Italy’s Ansaldo Energia is supplying the plant’s gas turbines.



Creating demand

Gazprom’s operations in Serbia are extensive, reflecting the close political ties between Moscow and Belgrade. Through NIS, it controls a second Serbian refinery in Novi Sad, as well as a minority share in the HIP Petrohemija petrochemical company, based in Pancevo. The company also supplies almost of all of Serbia’s gas, with shipments reaching 2.15 bcm last year.

The Pancevo TPP will be the first combined-cycle gas power station ever to be built in Serbia, which relies on coal for most of its energy needs. And Gazprom already has several similar projects in the pipeline.

Fyodorov signed a MoU at last week’s ceremony with Serbian Energy Minister Alexander Antic on the development of additional combined heat and power (CHP) ventures, as well as upgrades at existing plants. Speaking with Kommersant, the Gazprom executive outlined plans to build as many as four plants in Serbia, with capacities of up to 400 MW, along the route of the TurkStream pipeline.

“We have created a working group that will consider options for the construction of the combined-cycle power plants,” he told the newspaper, cautioning that it was too early to comment on a schedule for their development.

The TurkStream pipeline consists of two 15.75 bcm per year strings that run from Russia under the Black Sea to western Turkey. One is designed to serve the Turkish gas market and the second is expected to provide supplies to southeastern Europe. Due online in 2020, the second string is anticipated to run through Serbia and Bulgaria, before terminating in Hungary.

Gastrans – a joint venture between Gazprom and Serbia’s state gas operator Srbijagas – opened a tender this week for binding bids to book capacity at the 400-km Serbian stretch of TurkStream. The section, which will be capable of flowing 13.88 bcm per year of gas, is slated for launch in January 2020. Those firms interested in booking capacity up until September 2039 will need to submit their offers no later than March 18.

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Edited by
Joseph Murphy
Editor
Any questions? Please get in touch josephm@newsbase.com


https://newsbase.com/topstories/gazprom-breaks-ground-serbian-tpp
 
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