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Source:
Tanjug |
Friday,
07.10.2016.|
10:46
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Copy linkSava Centar getting a partner – Investments of around EUR 20 million needed
Sava Centar (Photo: fest.rs)
The Assembly of the City of Belgrade has adopted the report of the committee for the analysis of Sava Center operations and authorized Mayor Sinisa Mali to form a commission which will choose a partner for the recovery and management of the congress center. The mayor will then submit a proposition for the choice of a partner for reconstruction and management of Sava Centar facilities to the Assembly.
The president of the Assembly of the City of Belgrade, Nikola Nikodijevic, said that Sava Centar needed large investments, but that the city would keep 51% of the ownership in the future public-private partnership, whereas the private partner would invest EUR 15 to 20 million in order to increase the energy efficiency and capacities of the company.
Nikodijevic pointed out that the future profit might be divided by percentage of ownership, with 51% going to the city, and 49% to the partner, but he repeated that Sava Centar was incurring losses and that achieving a zero-sum balance would be a success.
As he said, Sava Centar had been incurring losses in the previous 20 years, not due to bad management, but because circumstances in which congress centers operated have changed.
– There’s no doubt that there’s potential, but large investments are needed. The city will keep the ownership of Sava Centar, so as to protect all the cultural events – Nikodijevic explained.
The committee’s report says that Sava Centar facilities are in a poor condition, as they haven’t been repaired or reconstructed in 40 years, and that they are not energy efficient due to the way they were designed. The conclusion is that the minimum amount of investments needed is around EUR 13 million, but that a new estimate needs to be made.
The city would contribute to the assets of the joint business entity with Sava Centar facilities and the land they were built on, and the partner would provide the funds for the reconstruction and professional management from the area of congress tourism.
The president of the Assembly of the City of Belgrade, Nikola Nikodijevic, said that Sava Centar needed large investments, but that the city would keep 51% of the ownership in the future public-private partnership, whereas the private partner would invest EUR 15 to 20 million in order to increase the energy efficiency and capacities of the company.
Nikodijevic pointed out that the future profit might be divided by percentage of ownership, with 51% going to the city, and 49% to the partner, but he repeated that Sava Centar was incurring losses and that achieving a zero-sum balance would be a success.
As he said, Sava Centar had been incurring losses in the previous 20 years, not due to bad management, but because circumstances in which congress centers operated have changed.
– There’s no doubt that there’s potential, but large investments are needed. The city will keep the ownership of Sava Centar, so as to protect all the cultural events – Nikodijevic explained.
The committee’s report says that Sava Centar facilities are in a poor condition, as they haven’t been repaired or reconstructed in 40 years, and that they are not energy efficient due to the way they were designed. The conclusion is that the minimum amount of investments needed is around EUR 13 million, but that a new estimate needs to be made.
The city would contribute to the assets of the joint business entity with Sava Centar facilities and the land they were built on, and the partner would provide the funds for the reconstruction and professional management from the area of congress tourism.
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