PM says "very favorable" conditions secured in China

PM says "very favorable" conditions secured in China

Vucic told Serbia's state broadcaster RTS that he will confer with Chinese PM Li Keqiang on even more favorable conditions, adding that this was "a very favorable credit arrangement with a lengthy grace period."

“We agreed on the price of EUR 209 million, including the construction of the Surcin - Obrenovac bridge of 17.8 km, and we managed to lower the price dramatically,” he said.

Premijer veruje da će druga deonica od Čačka do Požege biti završena do kraja 2018. godine, te da će se time spojiti sa Užicem i produžava se dalje prema Crnoj Gori i prema Republici Srpskoj.

The prime minister added he believed that the second section, from Cacak to Pozega, would be finished by the end of 2018 - connecting with Uzice in western Serbia, and extending farther toward Montenegro and the Serb Republic (RS).

Speaking on Thursday, Vucic also stated that the first agreement with China's Hebei Iron and Steel (HBIS) Group regarding Serbia's Zelezara Smederevo steel mill will be inked in December, while the final one will be sealed in April 2016.

“I expect the company to take over Smederevo mill in July,” he told the Belgrade-based broadcaster TV Pink.

China is also considering investing EUR 300 million in the construction of a plant that would manufacture welded pipes relying on the output of Zelezara Smederevo, said Vucic, adding that this would trigger "a dramatic increase of Serbia's GDP."

During his China trip the prime minister attended the China-Central and Easter Europe summit and met with the country's president and prime minister.

"Transform friendshi into actions"

The long-standing, traditional friendship between Serbia and China and their mutual political trust should be transformed into specific actions, Chinese Prime Minister Li Keqiang said during a meeting with Serbian Prime Minister Aleksandar Vucic on Thursday.

The Smederevo steel mill is a good opportunity to strengthen our economic ties - I will support the arrival of the Hebei Iron and Steel Group (HBIS) with the wish that they boost production capacities there and enable the steel mill to supply not only Serbia, but the entire region, Li said.

There is potential to expand cooperation in agriculture, development of SMEs and in culture and tourism, he noted.

The prime ministers also attended the signing of several memorandums, including a memorandum of understanding between the Serbian government and the HBIS on the Smederevo steel mill.

Memorandums

Several memorandums have been signed during Serbian Prime Minister Aleksandar Vucic's bilateral visit to China.

The list of the signed documents includes a memorandum of understanding (MoU) with the ministry of science and technology envisaging the cooperation on the review of projects registered for the national project cycle from 2016 to 2020, an MoU on the building and financing of a waste-fueled power plant, an MoU for development of an industrial park.

In the presence of the prime ministers of China and Serbia, relevant officials also signed an MoU on cooperation in building two sections of the E763 highway along Corridor XI, then a protocol on health requirements for frozen beef exports from Serbia to China, and a program for educational cooperation from 2016 to 2020.