A financial contract between the European Investment Bank and the Air Traffic Control System of Serbia and Montenegro (SMATSA) was signed today in the presence of Serbian President Aleksandar Vucic and European Council President Donald Tusk.

The EUR45 million worth contract will secure investments in airports and other activities with a view to increasing air traffic safety. Vucic said that some EUR5,5 million will be invested in the construction of a control tower at the airport in Nis.

On behalf of the SMATSA, the contract was signed by SMATSA Director Predrag Jovanovic.

EIB President Werner Hoyer said that the European Investment Bank was determined to support the EU’s Western Balkans strategy by stepping up financing and advice for the region.

Hoyer stressed that investing in the Western Balkans means investing in the future of Europe.

“The EIB is committed to being a reliable partner to the public and private sector in the region. We are committed to boosting economic resilience, upgrading and developing social and economic infrastructure and furthering private sector growth and job creation,“ he said.

“Hoyer and Tusk met with Serbian President Aleksanda Vucic and, as part of this dialogue, the EIB President underlined the EU Bank’s substantial contribution to socio-economic development in Serbia and the whole Western Balkans region, and its commitment to continuing and expanding this support,” read a press release issued by the EIB.

The release further reads that the EIB, being one of the biggest investors in the region, has already provided EUR7 billion in financing for economic and social development in the region since 2007 in closer cooperation with the EU and other financial institutions. The Bank is already active in some of the key areas, including increasing connectivity and supporting socio-economic development, and is looking forward to working with the region to enhance the digital economy.

The contract will secure funding for new investments in construction and modernisation of air traffic control facilities, the construction of new ones and reconstruction of old radar systems in Serbian airports. The contract is part of the 2017-2021 SUSAN programme, worth nearly EUR118 million, funded by SMATSA and through EIB and EBRD loans, reads a statement released by the Office of the Deputy Prime Minister Zorana Mihajlovic, who also attended the signature ceremony. In the next four years, the funding secured through this contract will be used to upgrade the air traffic control system in Serbia and Montenegro, including procurement and implementation of radar systems at three new locations (Nikola Tesla Airport in Belgrade, Besna kobila and Vrsuta in Montenegro).

The projects envisage the implementation of voice communication systems ground-air and ground-ground using IP protocols, the construction of the Belgrade ATCC Annex with Belgrade ATC tower, and the construction of the Belgrade C-ATCC with Nis ATC tower. The requirements and standards of the European regulation package, better known as “Single European Sky,“ which has been implemented in Serbia and Montenegro, will be fulfilled thanks to this modernisation. The modernised system will improve safety, capacity, efficiency and cost efficiency of the Air Traffic Management System, as well as traffic connections of the region and will also reduce gas and noise emissions. The modernisation will thus bring benefits to airlines, airports and passengers and confirm Serbia and Montenegro Air Traffic Services SMATSA LLC’s reputation as one of the best service providers in this part of Europe.

92 per cent of SMATSA is owned by the Republic of Serbia. The SUSAN programme is worth nearly EUR118 million with investments directed towards four airports in Serbia: Konstantin the Great in Nis, Ponikve in Uzice, Morava in Kraljevo and Nikola Tesla in Belgrade. The biggest investment is foreseen the Konstantin the Great Airport in Nis and includes the EUR5,5 million worth construction of a control tower, in order for the airport in Nis to be used as an alternative to the airport in Belgrade. The airport in Kraljevo will benefit from EUR850,000 for the replacement of pilot controlled lighting, while the airport Ponikve will receive EUR440,000, most of which will be used to improve the infrastructure around the runway. SUSAN funding will, among other things, be used for the construction of the Belgrade ATCC Annex with Belgrade ATC tower and an upgrade of ground based radio navigation aids in and around the airport, the statement reads.