Aleksandar Vlahovic

Belgrade, August 24 - The privatisation of the three cement factories, namely those in Beocin, Kosjeric and Novi Popovac, has been launched by the selection of the finance and legal advisers, it was said at the press conference given by the Economy and Privatisation Ministry and the Agency for Privatisation on Friday.

The selected finance adviser is the NSBC Co., which has demanded for its service 0.695% of the price set by the transaction, whereas the chosen legal adviser, CMS Strommer Reich-Rohrwig Karasek Hainz, has charged €218,000 for its services.

According to Mirko Cvetkovic, Deputy Economy and Privatisation Minister, out of 13 finance and 7 legal advisers that have been called, the Agency for Privatisation has received expressions of interest from 8 finance and 6 legal advisers.

Airplanes bursting with potential investors

- It's not good for a country to suffer from a political crisis, as investment risk gets higher that way. If the crisis persists for more than 2-3 months, it can discourage investors, as no one is willing to place investments in a country burdened with a political crisis. All the same, I hope it will soon pass - Vlahovic replied when answered whether the current political turmoil would repel foreign investors. Gregor Famira, a CMS representative, said that the competition had been fair today and that it was a good sign for potential investors. - I know many people who are willing to invest in Serbia. Planes are full of potential investors as everybody wants to be here and invest here. Serbia will soon become Europe's centre - Famira forecasts.

- Each proposal consisted of a technical and a financial part. First the quality of the service offered was assessed, then three advisers in each area were shortlisted. Prior to this press conference, the envelopes containing financial proposals were opened and those offering the most favourable conditions were appointed as privatisation consultants for the three cement factories - Cvetkovic explained adding that some world companies had declined to offer advisory services as they had already been engaged by buyers interested in these factories.

According to the Economy and privatisation Minister Aleksandar Vlahovic, the decisive technical criteria for the selection of advisers were the company's experience in privatisation, especially that of the Central European cement factories, and the timeframe proposed for the implementation of privatisation.

According to Vladimir Cupic, Acting Director of the Agency for privatisation, advisers are to prepare tender documentation in cooperation with the Agency. The contract will be officially signed next week, after which consultant teams will visit the cement factories and prepare reports on their condition.

- This is the first step in the process of privatisation. A similar procedure is under preparation for 16 enterprises, whose privatisation will be financed by the World Bank , to be followed by another 11 Serbian companies.

Vlahovic said that the privatisation of one big cement factory would be completed by year's end, while the whole process should be finished by next February.