While the budget for this year originally projected that the “preparation and construction of a center for specialized exhibitions” would cost 300 million euros, it is calculated that “the preparation and construction of a center for specialized exhibitions with accompanying infrastructure” will cost 450 million euros.
This is just one of the changes brought about by the rebalancing proposal when it comes to large infrastructure projects.
Also, according to the current budget, it is planned that in 2023 state guarantees of the Republic of Serbia can be issued up to the amount of 2.3 billion euros, and with the rebalancing it is proposed that this amount be up to 2.7 billion euros, i.e. 400 million euros more.
It is about Article 3 of the budget and rebalancing, with the fact that some projects have been “repackaged”, so the rebalancing suggests that guarantees can be issued to the European Bank for Reconstruction and Development in the amount of 77.3 million euros for the revitalization project of the Vlasina hydroelectric power plants. Up to now, guarantees for that project have appeared as a possibility, in favor of foreign or domestic banks.
A significant change is noted in the assessment of the value of the Bistrica 1 reversible hydroelectric power plant construction project and, in connection with that, the amount of guarantees that the state would have to offer. While the budget for that project is planned for 600 million euros, the rebalancing calculates that it will be necessary to issue guarantees worth 900 million euros for that project.
At the end of July, Serbian President Aleksandar Vučić stated in Priboj that “the price of Bistrica will reach 1.2 billion euros” and that the Minister of Energy “is going to Japan to negotiate financing”. The possibility of the state issuing guarantees in the amount of 65 million euros for the revitalization of the Potpeć hydroelectric power plant was also included in the rebalancing.
For another project in the field of energy in the rebalancing, higher expenditures are calculated – the value of the guarantees for the “Smart Meter Project” increased from 40 to 80 million euros.
The “repackaged” republic treasury opens the possibility for Serbia to approve project and program loans in the value of up to 34.96 billion euros and 980 million dollars, while the budget planned about four billion euros less for those purposes.
In this part of the rebalancing, the value of the possible loans that Serbia would contract with the European Investment Bank increased by around 250 million euros, due to the increase in the value of the local road rehabilitation project, while another 100 million euros more than the budget would be contracted with the Bank for the development of the Council of Europe.
The biggest change, however, is among the project and program loans that the state can contract with foreign investment corporations, funds and banks.
