Sava Centar owes EUR 6.3 million in property tax

It is well known that Sava Centar has had financial problems for years, but it's pretty shocking to learn that the famous congress center currently owes EUR 6.3 million in property tax alone, Blic writes.

What further complicates the situation is that another tendering procedure for a public-private partnership has fallen through, and the announced concession of Sava Centar for a period of several years will still have to wait.

– The property tax debt starting from 2014 amounts to RSD 560,180,776 as of March 31, 2019, the interest amounts to RSD 190,533,709, and the total amount owed in property tax is RSD 750,714,486.42 – reads the report on the relation of the planned and the realized activities from the program of operations, pertaining to the first quarter of 2019.

The daily writes that an additional problem is the fact that the operating income in this period amounted to RSD 90,395,000, lower than planned by RSD 36,855,000.

According to the documents, this is largely down to a reduction in subsidies (73%).

– Due to the fact that Sava Centar was built 40 years ago, when energy was cheap and when energy efficiency was not a concern, energy costs have been the biggest problem in the past years. The founder has set aside around RSD 36 million to cover a part of the costs of electrical energy.

Let us remind that only Delta Holding sent an offer during the most recent tendering procedure for a public-private partnership, within which a private entity that would invest 25 to 30 million euros in a major reconstruction of the facility was being sought, but that the offer was rejected, after which it was announced that the congress center would be offered for a concession.

JP Sava Centar Beograd

Delta Holding d.o.o. Beograd

property tax debt

debt of Sava Centar