In the second quarter of the year, the construction sector recorded an increase in the number of employees, that is 10 per cent higher in accordance with exactly the same period last year.
The construction sector and infrastructure projects in Serbia haven't been stopped. The Ministry of Construction, Transport and Infrastructure reacted in time, and all sorts of recommendations which were valuable to the construction companies were posted around the Ministry's website therefore the construction work can continue. Aleksandra Damnjanovi'c, their state Secretary within the Ministry of Construction, Transport and Infrastructure, Government from the Republic of Serbia gave an interview for Diplomacy&Commerce's exclusive edition called 'Real Estate Sector in Serbia' by which she says: “The outcomes achieved in this segment have importance so that, like a state, we are able to easier overcome the economical crisis that affects the whole world. In the first quarter of 2023, the value of executed construction work increased by 24.4 percent compared to the same quarter of 2023. The construction sector was the main driving force behind GDP growth, which within the same quarter, stood at 5 per cent relative to the same period in 2023,” says Ms Damnjanovi'c.
How did the coronavirus pandemic affect the construction sector and infrastructure in Serbia?
From the onset of the COVID-19 epidemic in Serbia as well as before the introduction from the state of emergency, the Ministry had implemented measures aimed primarily at preventing multiplication from the infection on construction sites and called on all construction companies and building material manufacturers to report their problems to us in this new situation. A lot of construction companies taken care of immediately our appeal, and also the Ministry, based on the received suggestions and notifications while implementing all decisions devised through the Government and its Crisis Unit, issued and published recommendations on its website, which, based on construction companies, were quite valuable at that time.
In addition to safety precautions, we actively participated in drafting government decrees, especially in the a part of organizing transportation for employees throughout the state of emergency. The Ministry's activities didn't stop despite your emergency was lifted. The Deputy Pm and Minister of Construction, Zorana Mihajlovi'c organized special meetings with representatives of the construction industry, with the aim of protecting the health of all employees and looking after the job process on construction sites. We're very happy to say that the number of infected workers on construction sites is extremely low.
The largest infrastructural construction sites in Serbia never closed down and they're still fully operational, as the workers are sticking with all prescribed measures. At the moment, a lot more than 6,000 individuals are focusing on the biggest transport and communal infrastructure projects, along with the construction of apartments for people in the security forces.
What is the situation with active construction sites right now in Serbia like, and just how important is the fact that for future years of Serbian construction?
Companies from Serbia, the EU, China, Azerbaijan, the united states, Russia and Turkey are engaged on our construction sites. At the outset of the epidemic, especially during the state of emergency, there were certain problems with the delivery of equipment, however the works weren't suspended for a moment. We believe that the overall delay within the implementation of projects, considering their complexity and cost, won't be significant.
In late July, there were as many as 61,303 active construction sites in Serbia, which is 16,090 construction sites a lot more than within the same period this past year. This data best show that the development industry in Serbia is coping well using the crisis, as evidenced through the quality of the business environment within our country, specially in the construction segment and also the issuance of construction permits, which number keeps growing year-on-year.
What would be the results to date with regards to the making of roads and railways in Serbia and just what projects are planned?
In recent times, 350 kilometres of motorways have been built-in Serbia and also over 550 kilometres of railway tracks happen to be overhauled. Corridor 10 was completed in 2023, so now there's an interminable motorway stretching from Belgrade to the border with North Macedonia and Bulgaria. The Belgrade-Cacak motorway segment, a part of the Milos Veliki motorway, is also opened to traffic.
Currently, works are underway around the construction of more than 250 kilometres of new motorways and expressways, and despite the difficult working conditions because of the coronavirus, we won't have long delays in implementation of these infrastructure projects.
I would like to make use of this chance to mention the most important projects like the Belgrade bypass, the Preljina-Pozega motorway segment, the Sremska-Raca-Kuzmin motorway segment, the Moravian Corridor, etc.
Serbia may be the location from the the biggest railway construction site within this part of Europe. We are building the Belgrade-Budapest fast rail that will possess the biggest viaduct in this place in the world. Both passages from the Cortanovci tunnel, on Fruska Gora, are also breached. Next year, once the Belgrade-Novi Sad railway track is completed, the commuting time between both of these cities is going to be only 30 minutes.
The goal is to modernize the entire railway section on Corridor 10 following the completion of the road segment of Corridor 10. Next year, the plan is to start works on modernization, i.e. construction of the high-speed railway on the sections from Belgrade to Nis.
When you are looking at residential and commercial space, does the construction of huge condominiums contribute to the increase from the construction's be part of Serbia's GDP?
Condominium was introduced as a term in the latest amendments towards the Law on Planning and Construction because, in practice, there was an increasing number of types of this kind of residential construction and layout. Based on the overall quantity of issued building permits, we are able to conclude that the number of issued building permits for that construction of residential buildings keeps growing, and the trend of construction of residential and residential/business complexes is particularly noticeable and that a significant quantity of condominiums has been built especially in bigger cities. The function from the legislator would be to monitor and listen to the requirements of citizens and businesses and react adequately by regulating exactly what can cause an issue within the implementation of relevant laws. In addition to the construction of huge infrastructure facilities, the construction of residential and residential/business complexes will certainly significantly participate in enhancing the construction's share in the country’s GDP.
What is the current situation with illegal buildings, 5 years after the enactment from the Law on Legalization of Illegally Constructed Facilities?
I have to say that the Ministry is not pleased with the number of legalized facilities and that the reason why for the relatively low number of issued legalization decisions lie in the fact that municipal and town administrations did not do their job properly although there were given extra manpower to do this. On the other hand, there's a noticeable lack of interest among numerous citizens to solve their trouble with illegal constructions. Many times, it happens that even after several requests in the line authorities to submit the necessary proof and documentation, they don't do this. The legalization conditions prescribed legally are such that everyone is able to legalize their house or apartment for a very low fee. The latest amendments to the Law on Legalization of Buildings ban the sale of these buildings, that was one of the measures to expedite the legalization process. It did yield certain results in practice.
However, along with focusing on legalization, municipalities and cities also needs to strictly adhere to the Law on Planning and Construction, act preventively, but additionally repressively and don't allow new illegal buildings to be built on their own territory. I must remind you that illegal construction has been considered a legal since 2002 which the circumstances for acquiring the necessary permits today are such that there isn't any reason behind one to build without one. It is very important that all state and other bodies act together – from the legislator to the judiciary – because only in this manner are we able to flourish in preventing new illegal construction, which undermines the principles of the entire legislation.
The e-permit system has developed in the making for a long time. What exactly are its effects now that a few years have passed?
Following the implementation of the system for electronic issuance of building permits, Serbia now stands shoulder-to-shoulder most abundant in developed countries within this segment. Serbia ranked 9th around the latest Conducting business list compiled by the World Bank, which is a fantastic success, because, before the implementation of this system, Serbia ranked 186th from 189 countries. The present system is being improved every day, and the development of the so-called e-space product is also planned that will incorporate aspects of e-government within the procedures associated with planning documents.
