March 2011

In infrastructure, the Bank signed €160 million of projects, of which €60 million was invested in the approach roads to the Gazela Bridge and Belgrade Bypass. A €100 million sovereign‑guaranteed loan was also extended to the Serbian Railways Company to purchase new locomotives and to upgrade and renew 111 kilometres of track along the strategically important “Corridor X”.

In the energy sector, the EBRD has provided a €150 million sovereign loan to Srbijagas to finance the upgrade of the country’s gas transmission network and build new gas storage capacity. A €40 million sovereign loan was signed with Elektroprivreda Srbije (EPS) to modernise Serbia’s power distribution network, upgrade the electricity system and install modern smart meters.

In the banking sector, the EBRD has invested a total of €167 million in 10 different projects dedicated to provide long‑term financing to small and medium‑sized enterprises (SMEs) of which €105 million was dedicated to three Greek banks: Vojvodjanska banka, EFG Eurobank and Alpha Bank.

In the corporate sector, the Bank signed €73.5 million through 10 different projects including two agribusiness projects of €30 million for

the implementation of the warehouse receipt system. By using this innovative facility for agricultural commodity financing in Serbia, the EBRD is aiming to improve access to funding for agribusinesses.

In manufacturing and services, the Bank’s focus is to invest in production assets and provide working capital to both local and international companies operating in Serbia, through long‑term debt and equity financing. As a result, €17.2 million was provided in 2010 to four new projects in the packaging products and construction materials sectors.

In addition, the EBRD has been working closely with the Serbian government on legal reforms that will promote capital market transactions such as initial public offerings (IPOs), as well as preparing for the issuance of dinar bonds based on revisions of foreign exchange and securities laws. Through technical cooperation the Bank is also assisting with the development of policy and legislation on public‑private partnerships (PPP).

The EBRD has also been closely involved in the Microfinance Working Group, which aims to promote the development of the microfinance sector in Serbia, with a view to alleviating poverty.

At a glanceNumber of projects

159Net business volume

€2.5 billionTotal project value

€5.5 billionGross disbursements

€1.6 billionCurrent portfolio

€2.0 billionPortfolio share in private sector

45%Cumulative, as at March 2011Includes regional projects

Serbia

The EBRD’s focus in Serbia is on the development of transport infrastructure, boosting small business and promoting renewable energy. The Bank has been the country’s largest investor since 2001 committing almost €2.5 billion to the country. In 2010 the EBRD committed €590.5 million across 24 projects.

Highlights of 2010

0

150

300

450

600

750

'10'09'08'07'06

Number of projectsVolume (€ millions)

0

10

20

30

40

50

EBRD projects 2006-10

Country strategy The EBRD’s country strategy for Serbia (approved in 2007) places strategic importance on the corporate and financial sectors and infrastructure.

In the corporate sector, the EBRD provides financing for privatisation and post‑privatisation restructuring to both local and foreign corporates.

In supporting the financial sector, it assists banks with a strong presence looking for opportunities to develop new products.

The Bank also plays a crucial role, together with partner IFIs, in developing the transport, energy and municipal infrastructure in the country. The majority of Bank investments (in terms of volume) are in the transport sector, particularly the development of the Corridor X highway and railway network.

ContactsEBRD Serbia officeBulevar Zorana Đinića 64a, 5th Floor11070 Novi BeogradSerbiaTel: +381 11 212 0529/0530/0531Fax: +381 11 212 0534Country Director: Hildegard Gacek

Kosovo office Pristina Resident OfficeAgim Ramadani pn10000 PristinaKosovoTel: +381 38 248 153Fax:+381 38 248 152Head of Office: Anton Kobakov (acting)

Western BalkansDirector: Claudio Viezzoli (based in London)

Central and South‑Eastern EuropeManaging Director: Jean Marc Peterschmitt (based in London)

EBRD HeadquartersOne Exchange SquareLondon EC2A 2JNUnited KingdomSwitchboard: +44 20 7338 6000Central fax: +44 20 7338 6100

Project proposals Tel: +44 20 7338 7168Fax: +44 20 7338 7380Email: newbusiness@ebrd.com

Country web sitewww.ebrd.com/serbia

Sector breakdown of current projects

Corporate 17%

Energy 15%

Financial institutions 27%

Infrastructure 41%

1

1

2

34

2

3

4

1 Corporate comprises agribusiness, manufacturing and services, property and tourism and telecommunications2 Energy comprises natural resources and the power sector3 Financial sector includes investments in micro, small and medium-sized enterprises via financial intermediaries4 Infrastructure comprises municipal environmental infrastructure and transport

Enabling energy security With a €150 million sovereign loan to JP Srbijagas the EBRD is helping Serbia to improve its energy security.

The construction of the second underground gas storage unit in Serbia will ensure enhanced stability of gas supply, helping the country to become more resilient against disruptions and the impact of seasonal swings in consumption. Part of the project is the improvement of 40 per cent of Serbia’s gas network, which is 20 and 40 years old and in some parts has reached its maximum life. A total of 1,000 kilometres of gas pipes will be inspected and repaired.

Modernising the national power gridThe EBRD is helping to increase the energy efficiency of Serbia’s power distribution network with a €40 million sovereign loan to Serbia’s power utility, EPS, to upgrade the electricity system and install modern smart electricity meters. The loan is co‑financed by the EIB who also extended €40 million.

The project will enable EPS to significantly reduce the level of electricity losses in the network, increase bill collection levels and raise the company’s operational efficiency. These improvements will transform EPS’s network into a modern power grid, cutting the company’s CO2 emissions by approximately 200,000 tonnes annually.