Arabs invest EUR 300 m, land rented on 99 years - Have a look at the most important items from the contract for Belgrade on water

(Contract signing)

The Government of Serbia and "Eagle Hills" signed on Sunday, April 26, the contract for the Belgrade on water project totaling EUR 3,5 bullion which should significantly support Serbian economy and engage construction industry.

The contract was signed by the minister of construction, traffic and infrastructure, Zorana Mihajlovic, president of the Managing Board at "Eagle Hills “Mohammad Alabar and the head of the Belgrade on water, Aleksandar Trifunovic.

According to the contract, the Republic of Serbia will own 32% capital while UAE partner will own 68% capital. The contract was signed by the Government of Serbia and "Belgrade Waterfront Capital Investment LLC", owned by "Eagle Hills" it was stated in the contract.

For funding the Belgrade on water project, "Eagle Hills" will provide EUR 300 m and 150 m in the form of capital with additional 150 m of loan in the form of a company founder’s loan.

It was confirmed the project will last 30 years maximum, 50% of the project to be completed in the first 20 years and during the works implementation, local contractors must have advantage.

"Eagle Hills" will additionally approve a loan to the Republic of Serbia, totaling EUR 90 m for relocation of railway facilities from the Sava amphitheater as well as EUR 40 m for expropriation process completion.

"Eagle Hills" accepted with the contract to rent land on 99 years so the land is not for sale and buildings which are in different regimes of protection will not be relocated.

Big day for Serbia and Belgrade

Zorana Mihajlovic said after contract aligning that this is a big day for Belgrade and Serbia.

- Serbia and Belgrade are building and this is a huge opportunity to hire construction, mechanical and every other industry – Mihajlovic added.

The minister expects that the contract will be implemented within deadline.

She added sale depends on supply and demand but that it is certain that Belgrade has been showing developmental trend and that nothing will remain unsold. Belgrade will not have the risk in case something is unsold and the analysis show there is no that kind of risk, Mihajlovic outlined.

Mihajlovic stressed out also that during the previous year, the Government has shown that everything it promised-it did, outlining that “no one believed that old boats will be relocated and it was done, no one believed the law for the project will be effective, no one believed the contract will be signed and it has been signed today”.

(Photo: Ivana Bezarević)

AL ABAR: "Belgrade on water" can support economic growth

Mohammad Al Abar said that today’s contract signing is an important step since, as he says, that kind of project can have an incredible effect on economic growth.

- This day is important for the citizens of UAE and Serbia. This is the day which we should celebrate as the start and strengthening of cooperation of our two countries - Al Abar said at the conference for journalists upon the contract signing.

According to him, this kind of project is important since it can have an incredible effect on economic growth.

- I think our commitment is the thing we opted for and that is to bring this part of Savamala in front of our firm and the Government of Serbia into life. We promised to the Government that on this project, we will use the most advanced techniques and design and we will do it – the first man at "Eagle hills", a company-partner on the project from UAE, said.

Upon the statement of journalists that the public does not believe the project will be implemented, Alabar replied that his determination for the Belgrade on water project is based on two pillars: one is the Prime Minister Aleksandar Vucic since if it weren’t for his support and pressures, we would not have that kind of motivation and the second one is the government of UAE.

He outlined that the country, over the past 18 years, implemented projects totaling between USD 15 and 20 billion and that, if that is not a guarantee for project implementation, guarantee is the pressure of the governments of the two countries.

Al Abar said Serbia has the prime minister who “is rarely seen in the world” and congratulate him for “an incredible organization”. He mentioned that the Serbian Prime Minister has been showing a great passion for his country and this project which, as he said, he did not encounter in 14 countries he runs business in.

"Belgrade on water" is a chance to implement the best practices worldwide, Al Abar said and added that he is proud of the fact that a team is involved in the project for the benefit of the people.

- We hope the people can recognize it - Al Abar outlined.

Speaking about positive effects which Belgrade on water will have for Serbia, Al Abar outlined the fact that the Government of Serbia has already putting pressure that in the project implementation, local workforce is engaged.

Al Abar reminded Belgrade and Serbia were presented in Cannes in France where the Belgrade on water was the main star and that it attracted an interest of large number of investors.

190 facilities already demolished

The mayor of Belgrade, Sinisa Mali, said the project is important for the capital’s future since ir will contribute to new hires and start trade and construction industry.

According to him, so far, 190 facilities have been demolished on the area where the first stage of the Belgrade on water will be built, 90 families were relocated and 46 boats removed.

Protest of the citizens

(Photo: Jelena Đelić)

Shadow on today’s contract signing was thrown by the protest of several hundred of citizens who gathered across the building of Geozavod where the officials were. "Ne da(vi)mo Beograd" (We will not give/drown Belgrade) organized the protest called "Let’s show them a duck" for the contract for the Belgrade on water project.

The main items of the contract

- Serbia will own 32 % capital while UAE partner will have 68%.

- "Eagle Hills" will provide EUR 300 m, 150 m in the form of equity and 150 m in the form of shareholders loan.

-It was planned the project to last 30 years maximum, half of the project must be completed in the first 20.

- During works implementation, local companies have the advantage.

- "Eagle Hills" will additionally approve Serbia a loan of EUR 90 m for relocation of railway facilities as well as 40 m for expropriation completion.

- "Eagle Hills" accepted a long-term land renting (99) years so land is not for sale.

- Buildings in different regimes of the governmental protection will not be removed. They will, in line with the model of the building of Zadruga, remain the possession of the state, will be rehabilitated and used for cultural purposes.

J.DJ.