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Speech by Mr Johannes Hahn, Commissioner for European Neighbourhood Policy and Enlargement Negotiations at National Investment Committee meeting
Belgrade 7 May 2015
Ministers, Dear Colleagues,
National Investment Committee crucial for identifying priority investments
I am delighted to address Serbia’s second National Investment Committee meeting today. The timing is just right as we recently finalised the agreement on the core transport network. This network is closely linked to your work.
The work of the National Investment Committee is crucial for identifying priority investments.
Proper prioritisation is key for an economy operating within constraints which are similar to those in which EU Member States have to operate. It is also important for developing Serbia’s programming capacity for the future use of EU structural funds.
An example for other Western Balkan countries to follow
We are using a similar approach (single pipeline plus investment committee) in the other Western Balkans countries. In this sense, Serbia has been a pioneer. Ministers, I hope you don’t mind if we tell your neighbours to be inspired by Serbia’s example.
Now it is time to put this model into further action and implement important investments for the country.
Close link to connectivity
Allow me to link the National Investment Committee to the work that we are doing on connectivity. Well-developed and interconnected infrastructure for transport and energy is a driver for economic growth and jobs as well as to attract new investments. Connectivity requires proper prioritisation. Public funds are scarce and we share the same need as you to get the maximum value for every Euro (or Dinar) we spend.
To deliver on the most important investments and to bring real benefits sooner rather than later, there is a clear need to select priorities carefully and to explore all possible sources of funding. This includes private capital.
The functioning of this National Investment Committee is crucial in this regard. It brings together the National IPA Coordinator, the Ministry of Finance, the relevant line ministries, the Commission, International Financial Institutions and the main actors of the private sector.
Strong consensus needed
The National Investment Committee will have to build a strong national consensus. Priorities from the single project pipeline will need to be supported by the responsible Ministries, tangibly, on the ground. Your presence today, Ministers, is very encouraging in this regard.
You will need to make decisions, possibly painful ones, as to what not to finance (or to finance later). In this context, project selection and budget preparation should be strongly interlinked.
Administrative and planning procedures should be accelerated to allow for the construction of priority infrastructures. This has proved to be a persisting problem in Serbia and I know that your government has every intention to tackle it The National Investment Committee is also the platform to formalise and improve coordination between the EU, IFIs, and private investors. Supporting Serbia’s efforts to implement priority investments and contributing to economic growth and will bring the country closer to the EU.
I would like to take this opportunity to encourage you to place this exercise and prioritise your investments in the context of a wider development strategy for your country.
Infrastructure development such as transport, energy and Information and Communication technologies are necessary but they should not be done in isolation to the strengths and competitive advantages and specialisation of Serbia. Identifying those strengths through the framework of a smart strategy will pave the way for the Serbian economy to become sustainable and competitive.
Today we will hear about some of Serbia’s priority investments that will be technically ready for financing in the short and medium term. The Commission has already explored the possibility of providing EU funds for some of those. Today is an opportunity to review the status of those investments. Our final decision will be linked to specific conditions. We wish to be certain that before supporting investment priorities, planning or land expropriation issues have been resolved or are at an advanced stage. We wish to support mature projects. Of course we wish to support projects of high strategic value for the country.
To give some few examples, we are interested in supporting the Niš-Brestovac railway section on Corridor X (TEN), which is part of the recently agreed Core Network, and the intermodal transport terminal in Belgrade. But we are also looking forward to more medium term strategic investments such as the gas interconnector between Bulgaria and Serbia. These are some of the projects that you will have the opportunity to discuss in more detail during this Committee meeting.
Maximum EU support
Ladies and Gentlemen,
I count on all the participating parties to cooperate constructively with the National Investment Committee and pursue the implementation of the single project pipeline. From the EU side, I can assure you that Serbia will get the maximum support possible from us in order to achieve its objectives in developing better infrastructures.
All our available financing instruments will be mobilised to ensure the timely implementation of investments in those infrastructure projects that are part of the extended core transport network. We will also finance other priority sectors covered by the single project pipeline in energy, environment and business-related infrastructure.
I wish you a fruitful meeting today.
Thank you.
