Flood damage estimates to date reach EUR 500mn

Flood damage estimates to date reach EUR 500mn

The indirect damage, meanwhile, could be "two to three times higher," she warned.

"Teams are visiting local governments, their job is to test and help so that the data is completely accurate," Mihajlović explained.

In addition to Obrenovac which was the hardest hit, 25 other municipalities are seriously affected, including Bajina Bašta, Ub, Loznica, and Čačak.

"The damage to critical infrastructure was EUR 306 million euros, and to local governments around 200 million. However, this is not the final estimate, because (data from) Obrenovac and some other municipalities is still awaited," she said.

This work will be completed by the end of June, according to her announcements, and in parallel with this process preparations are made to begin reconstruction works, "because the goal is to make sure that all those left homeless get a new home by winter."

Mihajlović said that the damage to Serbia's road infrastructure was EUR 40 million and that the money will be withdrawn after part of the loans taken from the World Bank and the EBRD has been repurposed.

"The work is done in collaboration with the Office for Reconstruction, which will provide answers to all questions. Our current priorities are homes and critical infrastructure. By October, people must have homes. In this work we are all together, the prime minister and all members of the government, as we have been when this misfortune struck. By October, all first and second cateogory roads under the authority of Roads of Serbia will be repaired, the government has decided that local roads will also be repaired, which should be done by the end of the year," she said.

The deputy prime minister added the indirect flood damage is much greater than the physical, and will be two or three times higher, taking into account all the lost revenue and the impact on economic growth.

Asked whether the government will deal with the question of what could have been done better during the crisis, Mihajlović replied that the government "will be presented with reports of all its ministers."

She also addressed the issue of the South Stream pipeline to say that "if not cautious, Serbia could face the next winter without sufficient gas supplies due to the Ukrainian crisis."

"We will have to plan beforehand and see whether we will store gas in some facility in Hungary or store additional quantities at Banatski Dvor. A strategy must be made and I expect the Ministry of Energy to work on this, because preparations have already been carried out," Mihajlović said, adding that the issue is discussed at government sessions.

The European Commission's request to Bulgaria that works on the South Stream pipeline be halted over Russia-EU relations was an expected move, Mihajlović said.

For that reason, Serbia must seek an alternative gas supply route, she added.

"Some kind of an EU-Russia agreement was sought before the Ukrainian crisis, but now the European Commission has requested that works in member states be halted," Mihajlović said.

Serbia is merely part of the South Stream, and has no influence on developments, but we must urgently think about securing another gas supply route, the deputy prime minister said.

"We must work on the route from Niš to Dimitrovgrad, as well as on the South Stream, regardless of which is to be completed first. The two are not rivals. Serbia is ready in this respect and is awaiting answers, and the answers must be given by Russia and the EU - and hopefully soon," Mihajlović said.