Untitled - AmCham Serbia Home Page

Contents
Aleksandar Popović, Minister
Partnership for Environment
Anđelka Mihajlov, Former Minister
Businesses Move Faster
American Chamber of Commerce
in Serbia
Vlajkovićeva 30/III/10
11000 Belgrade
Serbia and Montenegro
Tel: +381 11 334 5961
+381 11 324 7720
Fax: +381 11 324 7771
E-mail: info@amcham.yu
Web: www.amcham.yu
Legal Perspective
Up for Fresh Air
Industry Perspective
Acid Test
AmCham Perspective
Editor-in-Chief:
Mirjana Stefanović
E-mail: stefanovic@amcham.yu
Director of Photography
Miroslav Petrović
mikica5@eunet.yu
Art Director:
Branko Žužić
Editorial Contribution:
Miša Ognjanović
Iva Savić
Cover page design:
LPT Publicis
Business Perspective
Environmental Stewardship
AmCham Serbia Leading the Change
Editor’s Perspective.................................................................6
From the President .................................................................8
Interview:
Aleksandar Popović, Minister of Science and Environmental
Protection
Partnership for Environment .................................................10
Business Perspective: Coca-Cola HBC, Environmental
Stewardship ............................................................................14
Industry Perspective: Messer Tehnogas, Acid Test.................16
Environmental Perspective: Ecolab, New Legislation
Underway ...............................................................................17
Interview:
Anđelka Mihajlov, President of the Environmental Ambassadors
Businesses Move Faster ..........................................................22
CSR Perspective: RBI, Steps Towards Sustainability..............24
AmCham Environmental Committee ...............................28
Legal Perspective: Karanović & Nikolić, Up for Fresh Air .............30
New Members ........................................................................34
International Perspective: TRC, Breath of Life ......................36
4
Printing: Rotografika
Segedinski put 72
24000 Subotica
Tel. : +381 24 548 024
Business Interview:
Marek Kalinowski, Duvanska Industrija Niš
Obligations to the Future .......................................................38
Interview:
Gordana Perović, Director of the Recycling Agency
The Clean Up Begins Now......................................................40
Featured Member: Bang & Olufsen.......................................42
AmCham Forum: Investment in the Future .........................44
PR Perspective: McCann PR, In Top League...........................48
Investment Perspective: JTI, Economic Wedding ................49
AmCham News:
Extraordinary General Assembly............................................51
Briefing with MIER .................................................................52
Business Luncheon with NBS Governor ................................53
AmCham Educational Initative..............................................55
Committee Matters:
IPR Press Conference ..............................................................58
Committee Updates................................................................59
Member Benefit Program ....................................................61
AmChamPerspective
Editor's Perspective
Dear Readers,
This autumn environmental
protection should be at the top of
the Parliament's agenda. A set of
environmental laws including the
Law on Environmental Protection,
the Law on Air, and the Law on
Waste, proposed by the
Government in late May, are
expected to be voted on in October.
AmCham's Environmental Committee has been
monitoring these legislative developments ever since its
establishment. Understanding that the protection of the
environment is key to long-term sustainability and looking to
expand the knowledge base of AmCham membership in the
areas of recycling, waste management, and air protection,
committee members invested a great amount of time and
energy into outreach and information sharing activities.
In the following pages you will find examples of how
international companies, such as Coca Cola and Philip Morris,
as well as local industries, have developed advanced strategies
to pursue their objectives in the area of environmental
protection.
In an exclusive interview for the AmCham Perspective
Minister of Science and Environmental Protection Aleksandar
Popović talks about priorities and activities his ministry has
undertaken to push for environmental legislation and
implementation of the environmentally friendly activities
throughout Serbia.
Find out how businesses view the environmental affairs in
our popular Forum section. Fellow members - Ball Packaging,
Fideco, and Lafarge - offer their views on the regulations and
their implementation in this area.
As always, we like to bring your attention to the AmCham
News and Committee Matters section, which features reports
from Extraordinary General Assembly, briefings with the
government, and information on the new AmCham education
initiative.
There are more exciting developments to highlight. You
have voted for the new name of the organization - AmCham
Serbia. New team leader, Bojana Vukašinović, joined the
Executive office and is contributing the knowledge,
experience, and skills gained at her previous post at the U.S.
Embassy. AmCham Perspective is undergoing a transformation
and will soon come to you with its new re-branded look - new
logo, new design, new tagline...
Stay tuned!
AmCham Patron Members
6
AmChamPerspective
Mirjana Stefanović
Executive Communications Coordinator
AmCham Members
3M ..............................................................................................www.mmm.com
ABS..........................................................................www.nove-tehnologije.co.yu
ADIZES d.o.o.............................................................................www.adizes.co.yu
Airport City d.o.o. .................................................www.airportcitybelgrade.com
Algotech d.o.o. .................................................................... www.algotech.co.yu
Afirma FCB d.o.o. ................................................................... www.afirma.co.yu
Alliance One Tobacco d.o.o. Beograd ....................................... www.aointl.com
Allied Pickfords .......................................................www.alliedpickfords-yu.com
Altis Capital ..........................................................................www.altiscapital.net
Aon .............................................................................................. www.aon.co.yu
A.S.F. International
Avon Cosmetics SCG d.o.o. .........................................................www.avon.com
Banca Intesa ad Beograd ......................................www.bancaintesabeograd.com
Ball Packaging Europe........................................................www.ball-europe.com
BasicMed Enterprise, Ltd.
BBDO Ovation Advertising....................................................www.ovation.co.yu
BDO BC Excel.........................................................................www.bcexcel.co.yu
Bedminster Capital Management LLC
B92 .................................................................................................. www.b92.net
Hyatt Regency Beograd ................................ www.belgrade.regency.hyatt.com
Berlitz Belgrade ..........................................................................www.berlitz.com
Booz Allen Hamilton .....................................................................www.bah.com
Bomanite - Ceris Engineering ..............................................www.bomanite.com
British American Tobacco South-Eeas Europe d.o.o. .....................www.bat.com
BTI Travel..................................................................... www.btiyugoslavia.co.yu
Carlsberg - Pivara Celarevo
CES Mecon ...........................................................................www.cesmecon.com
CEEmark S&M...................................................................... www.lexmark.co.yu
CHF International / Serbia .....................................................www.chfserbia.org
Cisco Systems ...............................................................................www.cisco.com
Citibank ..................................................................................www.citibank.com
CMS Reich-Rohrwig Hasche Sigle d.o.o. ...............................www.cms-rrhs.com
Coca Cola ................................................................................. www.eur.ko.com
Coca Cola HBC Serbija a.d. ............................................www.coca-colahbc.com
Colliers International .............................................................. www.colliers.com
ConsulTeam d.o.o. ...............................................................www.consulteam.bg
DaimlerChrysler Serbia and Montenegro.................www.daimlerchrysler.co.yu
Deloitte................................................................................ www.deloittece.com
Delta M ....................................................................................www.deltayu.com
Deutsche Lufthansa AG ........................................................www.lufthansa.com
DHL International Belgrade .........................................................www.dhl.co.yu
Diastasi Construction ............................................................www.diastasicon.gr
Diners Club International Belgrade Ltd...................................www.diners.co.yu
Direktna Trgovina ...................................................................www.dirtrade.com
Dražić, Lazarević & Beatović Law Office
Duga Sistem ......................................................................www.dugasystem.com
Economics Institute ................................................................www.ecinst.org.yu
EI Com Group Konsing...........................................................www.konsing.com
Eli Lilly (Suisse) S.A........................................................................www.lilly.com
Ernst & Young ..........................................................................www.ey.com/eyse
E-Search ................................................................................www.e-search.co.yu
Ecolab Hygiene d.o.o.................................................................www.ecolab.com
Europen Sistem d.o.o. ...........................................................www.europen.co.yu
Europlanet a.d...................................................................www.europlanet.co.yu
Executive Group .....................................................................www.bizinfo.co.yu
Fideco d.o.o. .............................................................................www.fideco.co.yu
First Data d.o.o. ......................................................................www.firstdata.com
FLAG International d.o.o. ....................................... www.flaginternational.com
FORD - Grand Motors d.o.o. .......................................................www.ford.co.yu
Forever Living Products
Freedom House ...............................................................www.freedomhouse.org
Fujitsu Siemens ...........................................................www.fujitsu-siemens.com
GA d.o.o. ..................................................................................www.gadoo.co.yu
GPX International Tire Corp............................................www.rumaguma.co.yu
Gemax .....................................................................................www.gemax.co.yu
GlaxoSmithKline Export Ltd. .........................................................www.gsk.com
Global Benefits Group, Inc. ...........................................................www.gbgi.org
Global Express ..............................................................www.globalexpress.co.yu
Globex Corporation ................................................www.globexcorp.com/serbia
Guardian Glass S.A. ...............................................................www.guardian.com
Harrison Solicitors ..................................................www.harrison-solicitors.com
Harvard Club .............................................................www.harvard-serbia.org.yu
Hemofarm Koncern A.D. ..................................................www.hemofarm.co.yu
Hewlett Packard .............................................................................www.hp.co.yu
Honeywell d.o.o..................................................................www.honeywell.com
HVB Bank ....................................................................................www.hvb.co.yu
Hypo Alpe - Adria Bank a.d. .....................................................www.hypo.co.yu
HYPO-Leasing d.o.o. .....................................................www.hypo-leasing.co.yu
IBM ............................................................................................www.at.ibm.com
ILS d.o.o. Beograd ....................................................................www.clydeco.com
Independent Expert Group .............................................www.iexpertgroup.com
ING Serbia and Montenegro.........................................................www.ing.co.yu
Intermol ...............................................................................www.intermol.co.yu
ITM Group ....................................................................................www.itm.co.yu
Janković, Popović, Mitić Law Office ...........................................www.jpm.co.yu
Johnson & Johnson
JTI Trading S.A. ............................................................................www.jt-int.com
Karanović & Nikolić Law Office ...........................www.karanovic-nikolic.co.yu
Komercijalna Banka..............................................................www.kombank.com
Komon Sens...................................................................... www.komonsens.com
KPMG d.o.o...............................................................................www.kpmg.co.yu
Kraft Foods d.o.o. ........................................................................www.kraft.com
Lalin Law Office ......................................................................www.lalinlaw.com
Lafarge BFC A.D.
Link Consulting ..................................................................www.link-group.com
LPT Publicis .............................................................................www.publicis.com
LUNA \ TBWA ............................................................................www.tbwa.com
M&V Investments........................................................................www.mvi.co.yu
Marsh d.o.o. ...............................................................................www.marsh.com
Marten Board International ......................................... www.martenboard.co.yu
Mašinoprojekt.............................................................www.masinoprojekt.co.yu
McCann-Erickson Group ......................................................www.mccann.co.yu
McDonald's Restorani d.o.o. ............................................www.mcdonalds.co.yu
Media Center ................................................................www.mediacenter.org.yu
Merck Sharp & Dohme Idea, Inc ...............................................www.merck.com
Messer Tehnogas AD ...............................................................www.messer.co.yu
Microsoft ........................................................................www.microsoft.com/scg
Millennium Film & Video d.o.o. .............................www.millennium-film.com
Milšped ..................................................................................www.milsped.co.yu
Multiserv d.o.o. Smederevo ..................................................www.multiserv.com
Naumović & Ivošević Law Office ..................................................www.nsi.co.yu
New Moment ..................................................................www.newmoment.com
Neumann Management Solution ...............................www.neumann-inter.com
Ninković & Parivodić Law Office ........................................www.ninkovic.co.yu
Ogilvy & Mather ...................................................................... www.ogilvy.com
Oracle .........................................................................................www.oracle.com
OSA - Računarski Inžinjering........................................................www.osa.co.yu
Paneleven Ltd. ...................................................................www.paneleven.co.yu
Pfizer ...........................................................................................www.pfizer.com
Pharma Swiss .................................................................www.pharmaswiss.co.yu
Philip Morris...............................................www.philipmorrisinternational.com
Piraeus Atlas Bank...........................................................www.piraeusbank.co.yu
PMC International ............................................................................www.pmc.at
Polymers Group ..................................................................www.polymers.co.yu
PriceWaterhouseCoopers d.o.o................................................www.pwc.com/yu
ProCredit Bank ............................................................www.procreditbank.co.yu
Procter & Gamble ................................................................www.pgbalkans.com
Prooptiki Entertainment...........................................................www.prooptiki.gr
PSC d.o.o. (Pakom Solution Centre).............................................www.psc.co.yu
Raiffeisenbank Beograd a.d. ........................................www.raiffeisenbank.co.yu
Raytheon Company ..............................................................www.raytheon.com
S & T Yugoslavia........................................................................... www.snt.co.yu
SAGA............................................................................................www.saga.co.yu
Schering - Plough
SCP International Ltd. ...............................................................www.scpint.com
Salford Continental.................................................................www.salford.co.yu
Senzal........................................................................................www.senzal.co.yu
SEED/International Finance Corporation .................................www.ifc.org/seed
Serbian Business Systems ..............................................................www.sbs.co.yu
Siemens d.o.o. .......................................................................www.siemens.co.yu
Societe Generale Yugoslav Bank a.d. ....................................www.socgenyu.com
Synergy Leo Burnett d.o.o.................................................www.leoburnett.co.yu
Teknox d.o.o. ...............................................................................teknox.cat.com
Telefonija A.D. ....................................................................www.telefonija.co.yu
TeleGroup d.o.o. .............................................................www.telegroup-ltd.com
Tenfore....................................................................................www.tenfore.co.yu
Teri Engineering......................................................................www.terieng.co.yu
Tetra Pak Production d.o.o. ....................................................www.tetrapak.com
The Belgrade Philharmonic Orchestra..........................................www.bgf.co.yu
Tigar ..............................................................................................www.tigar.com
TMF Services d.o.o...............................................................www.tmf-group.com
TNS Medium Gallup..............................................www.tnsmediumgallup.co.yu
Tsomokos Group International d.o.o.................................www.tsomokos.co.yu
Tuck Vision .................................................................................www.tuck.co.yu
U.S. Steel Serbia d.o.o.
Unigroup d.o.o. .................................................................www.uni-group.co.yu
V.I.P. News Services
Vojvođanska banka a.d. Novi Sad ..........................................www.voban.co.yu
Western Union - EKI Transfers......................................................www.wu.co.yu
Wolf Theiss & Partners ........................................................www.wolftheiss.com
Wrigley .................................................................................... www.wrigley.com
Wurth d.o.o. .............................................................................www.wurth.co.yu
XPRO d.o.o / XeroX....................................................................www.xpro.co.yu
Zdravlje - Actavis ...................................................................www.zdravlje.co.yu
Živković & Samardžić Law Office.....................................www.zslawoffice.co.yu
AmCham Serbia and Montenegro Board of Governors
President: Mr. Eugenio Sidoli, Philip Morris
First Vice-President: Mr. Miles Stipanovich, U.S. Steel Serbia
Second Vice-President: Mr. Dejan Cvetković, Microsoft
Secretary-Treasurer: Ms. Patricia Gannon, Karanović & Nikolić Law Office
Untitled Governors - One Year Term:
Mr. Anthony Barnett, Ball Packaging Europe
Mr. Predrag Mihajlović, Komercijalna Banka
Mr. Stefanos Vafidis, Coca Cola HBC
Untitled Governors - Two Year Term:
Mr. Vladimir Čupić, Hypo Alpe-Adria-Bank
Mr. Dragan Lazarević, Deloitte
Executive Director: Ms. Bojana Vukašinović
AmChamPerspective
7
From the President
Dear Fellow AmCham Members,
our months have passed since the election of the new Board of Governors
and it is time to draw a line and assess where we stand with regard to the
promises we made at the time of the General Assembly.
Since its appointment, the Board has initiated a new course in the lifecycle of
our association, leveraging the success achieved over a period of four years but
investing new energy and resources on the growing expectation that AmCham can
play a leading role in supporting reform and in transitioning Serbia towards the
Euro-Atlantic Union.
We believe that "changes" in Serbian society depend to a certain degree on our
success as a leading network of prominent enterprises and employers, on our
ability communicate our vision and our ability to influence decisions that will
shape the future development of our industries, business, and social environment
in which we live and work.
None of these objectives can be achieved unless we share a common platform,
unless we are focused on what we want to achieve and unless we are willing to
seriously engage in dialogue and interact with the decision makers. As in business,
the lack of progress and achievements at AmCham will primarily depend on what
we do not do!
The Board has therefore invested most of its time and energy on re-focusing
AmCham, to refine its strategies and to improve its action plans. We feel we have
accomplished some critical steps already:
• Our campaign to raise the attention of leading government officials to the role
of the investors' community and its needs has commenced successfully: the
work in progress with the Ministry of International Economic Affairs, the
Ministry of Trade, the National Bank of Serbia and the Government of
Montenegro is promising and we expect to follow it up with other ministries
in time;
• Media coverage, generated by the initiatives of the last months and by a
consistent follow up with press releases and press conferences, have already
given us some additional visibility: as we are also witnessing a growing media
interest on our role, our objectives and our plans, we will take advantage of the
opportunities to a maximum;
• In line with the shift in focus, the new Executive Director and the office staff
are adjusting their action to support advocacy, visibility and services to the
network: these are their prime tasks and we will be demanding on their
deliverables;
• Via e-news, we provide you with regular feed-back on activities undertaken and
on any future initiatives we are committing to: your feed-back on it is more
than welcome;
• The split of AmCham between Serbia and Montenegro that we have voted for
at the Extraordinary General Assembly will certainly allow for a better
allocation of our resources and higher effectiveness in both countries: the
action plan for Montenegro will follow shortly;
As a general remark, I want to say that the first round of direct contact with
you, our members, and the feedback you have given us at the Extraordinary
General Assembly seem to prove that the direction we have undertaken is
supported and that the momentum is on our side.
Looking forward to your continued feedback and contribution to ensure the
Association grows as it should.
F
We believe that
"changes" in
Serbian society
depend to a
certain degree
on our ability
communicate
our vision and
ability to
influence
decisions that
will shape the
future
development of
our industries,
business, and
social
environment...
Eugenio Sidoli
President
8
AmChamPerspective
Interview
Partnership
for Environment
I
n the past two years, the Ministry of
Science and Environmental
Protection has been pushing for an
intensive legislative activity that
resulted in four new pieces of legislation
entering the parliamentary procedure in
2006. Furthermore, pollution problems
in the priority areas in Serbia are being
solved. Finally, good cooperation with
the economy and businesses has been
achieved. Wherever there was a lack of
cooperation, the factories were closed.
Approximately ten facilities for which
there was no hope were shut down. No
10
one is exempt from the responsibility
for the environmental pollution, not
even foreign investors, says Aleksandar
Popović, Minister of Science and
Environmental Protection in the
interview for AmCham Perspective.
How would you comment on the
assessment of OSCE mission chief
Hans Ola Urstad that Serbia has an
extremely high degree of
environmental pollution? What
measures is the ministry taking to
improve the situation?
AmChamPerspective
With all due respect to Mr. Urstad`s
right to his own impression, I would
have preferred that some data, or
examples were given or analyses done,
and that the conclusion be drawn from
that. This way, we are dealing with
perceptions that I disagree with, because
they are not supported by arguments. It
is too much to say that the state is very
good in the field of environment, but
our environment cannot be called a
"much more polluted" one either.
There are certain locations in Serbia
that are in very bad shape, and a good
Aleksandar Popovic, Minister Of Science And Environmental Protection
”Privatization most
frequently contributes to
solving the issues of
environmental protection.
Perhaps the best example
is U.S. Steel. The situation
there, has significantly
improved and that could
happen only thanks to a
foreign investor who
came with a great deal
of experience.”
not make any profit, while in the
meantime the technology became
outdated… Taken all in the account and
the NATO air strikes in 1999, we reached
2000. So my personal assessment of the
state in the area of environment would
be that it is neglected.
The Council for Environmental
Protection within the Ministry of Science
and Environmental Protection prepared
a report on the state of the environment
which will be reviewed in October this
year. The report covers environmental
activities and assessments for year 2005,
along with the reports for 2003 and
2004, for which there was no legal
responsibility of this Ministry. The report
will show and reflect what exactly is the
state of certain fields of environment, as
well as how and to what extent the
quality of the environment in different
areas of Serbia varies.
What are, in your opinion,
priorities in the area of
environmental protection in Serbia?
It is clear that there are many
segments to be worked on and that,
because of both legal authority and
volume of work, the republic alone
treatment of waste is also very poor
since there is no system of organized
collection. Some things can be put in
order fairly quickly or at least to a
tolerable extent, and for others it takes
time. The best example for the latter is
gasification, because it reduces the use
of coal and boiler houses - the key
cause of increased air pollution in
some cities during the winter.
Privatization most frequently
contributes to solving the issues of
environmental protection. Perhaps the
best example is U.S. Steel. The situation
there, although still not perfect, is
significantly improved and that could
happen only owing to a foreign
investor who came with a great deal of
experience not only in his basic field of
activity but also in the field of
environmental protection.
The Recycling Agency has the
authority only to qualify hazardous
waste. How will that be regulated in
the future?
The Recycling Agency will be
incorporated into the ministry in
charge of environmental protection, so
all issues will be solved at the same
„ ”Laws regulating environmental issues will be in the
parliamentary procedure in October.”
part of it is also the effect of NATO
bombing in 1999. The state of our
environment is the result of the
impositions of different forces in past
decades. Firstly, there were not as many
"dirty" technologies in the former
Yugoslavia as in other Eastern European
countries. Nor were there any large
military bases of Warsaw pact that would
create greater pollution. The imposed
sanctions were in a way good and bad for
the environment. It led to less pollution,
but the effect on the environment was
manifold later, since the industry could
cannot solve all the issues. One part of
the work is proposing laws and
harmonizing them with European Union
initiatives. Laws regulating the issues of
air pollution and protection, noise,
environmental protection, ionizing and
non-ionizing radiation protection,
fishery in natural waters, chemicals with
dual purpose management, waste
management, as well as the national
strategy for environmental protection
and the ratification of a greater number
of international conventions will be in
parliamentary procedure in October.
Naturally, legislative reform itself is
not enough. Laws must be
implemented, and very often that is
not a simple task. What must be
tackled are the concrete, actual
problems that local communities are
unable to solve on their own: air
pollution and a large quantity of
communal waste. The special
AmChamPerspective
place and the synergy which was often
lacking will exist.
What can you tell us in regards to
the legislation that will regulate
packaging and packaging waste?
It has been planned that work on
this law will be completed by the end
of the year, so it is realistic that it could
reach the parliament in the spring. The
packaging and packaging waste law will
result from Law on Waste Management.
Not in one step will we damage the
interests of the investors, domestic and
foreign, but the issue of packaging and
packaging waste must be solved, and
the responsibility assumed by those
who put the packaging to the market,
not those who produce it.
It is possible to discuss different
solutions depending on the kind of
packaging: there can be one solution
for PET containers, another for
11
Interview
the municipal authorities reach
agreement, create municipality
groupings, find a location, and the
ministry would be prepared to provide
money for project documentation and
to co-finance construction.
After more then a year, we have
only four groupings of municipalities
that are ready, in the sense that they
have the consensus and the project
documentation. These clusters are
around Kikinda where the construction
has started, Užice, Leskovac and Nova
Varoš. From the beginning of next year
we will tighten up access: unless the
municipalities reach these agreements
and develop projects, they will be
considered to be polluters and in
accordance with the law, as polluters,
they will have to pay taxes.
„ ”As far as storage of waste is concerned, laws must be observed
regardless of whether we are dealing with domestic or foreign
investors. All those who produce hazardous waste must export it.”
aluminum; yet a different one for
carton, then for pesticide packaging
and so on. We are prepared for any
kind of solution that segments of
industry propose to us. Solutions must
not be superficial, but they have to get
to the heart of the problem.
Will the capacity development
system for collection and depositing
of packaging be applied on the level
of municipalities as planned in 2003
Waste Management Strategy?
Absolutely so. It is important for the
state to make a legal framework to
assume the system, and after that a clear
interest of stakeholders should appear.
Which international
organizations and institutions funds
can Serbia count on in the area of
environmental protection?
We depend on many resources
starting with the EU/CARDS
(Community Assistance for
Reconstruction, Development and
Stabilization) program which enabled us
to use resources in the period 2002-2006.
12
From 2007 they will be replaced by a
new instrument for pre-accession called
IPA, which will be in force from 2007 to
2013. IPA will introduce a decentralized
system of program management.
There are also the GEF (Global
Environmental Fund) resources; the
Multilateral Fund for the
Implementation of the Montreal
Protocol resources; those of the World
Bank; Council of Europe; different
agencies of the UN; resources that come
out of the bilateral aid (Sweden,
Austria, Czech Republic, Italy,
Germany, then the Greece, Norway,
Switzerland and the USA) linking debt
write-off with investing into the
environment. There are also substantial
funds open for local governments, thus
much depends on their management.
Quite frequently, a greater limiting
factor for us is the degree to which the
organization lacks resources. For
example, for over a year the ministry
has been trying to convince local
governments to organize themselves,
make clusters and start building
regional dumps. All we asked was that
AmChamPerspective
Have you considered the
possibility of tax exemption for
producers who import or produce
using eco- friendly technology?
A system already exists. All the
equipment that is not produced here
and is imported with the primary
purpose of environmental protection is
exempt from duty. New technologies'
exemption from duty is very
complicated because it requires a
special classification and procedure, but
that also can certainly be considered
What actions were taken in
regards to the storage and treatment
of hazardous waste? Is there any
possibility for regional cooperation
in the Balkans?
We will try to reduce the problem
through a series of smaller investments.
In cooperation with the Ministry of
Health we will try to solve the issue of
medical waste, and we are also looking
to try to solve the problem of oil and
water emulsions. Furthermore, we are
ready to grant concessions to those
who want to enter the processing of
different types of waste characterized as
hazardous waste. As far as storage of all
kinds of waste, and even of special
waste is concerned, laws must be
observed regardless of whether we are
dealing with domestic or foreign
investors. That means that all those
who produce hazardous waste must
export it. Those who do not will have
to face legal measures.
Business Perspective
Coca-Cola HBC
Environmental Stewardship
Continuously examining opportunities to reduce its consumption of resources,
minimizing the waste and maximizing the amount of recycled content.
By Sanda Parezanović
Communication Director
Coca-Cola HBC
K
nowing that the Company's long-term success is in
direct correlation with the well being of environment,
the Coca-Cola System integrates the principles of
environmental stewardship and sustainable development into
its business decisions. That is why, in all 28 countries where
has its operations, Coca-Cola HBC applies its Environmental
Policy committing the company to conduct business in a
sustainable manner, seeking a steady improvement in
environmental performance and minimizing impacts on the
local and global environment.
Compliance and Accountability
In order to have an effective environmental management
system, Coca-Cola HBC makes sure that sound environmental
practices are incorporated into its daily operations. Even in
the absence of specific regulatory requirements, the Company
undertakes to operate in responsible manner. Coca-Cola HBC
has adopted the international environment management
standard ISO 14001, and in Serbia was even among first 15
companies which gain the certification.
Being accountable for its actions, Coca-Cola HBC is
committed to continuously improving its environmental
performance. The Company conducts audits of
environmental performance and practices, documents the
findings and takes necessary improvement actions. By the
end of 2005, the company had achieved an ISO 14 001
certification at 54 of its 79 bottling operations, representing
79.1% of produced volume. Although this is already a high
rate relative to peer industries, Coca-Cola HBC remains
committed to achieving 100% certification in all 79 plants.
Coca Cola Recycling Project
Minimizing Impact, Maximizing Opportunity
Coca-Cola HBC continuously examines its business for
opportunity to reduce its consumption of resources,
minimizing the generation and disposal of waste and
maximizing the amount of recycled content in its packaging
and other materials. The company uses the advantage of
research results and new technology, taking into account the
associated cost or profit for each environmental benefit.
To gain greater understanding of its environmental
footprint, Coca-Cola HBC conducts annual ecological
analyses of its entire value chain. The company investigated
14
the direct and indirect environmental impacts along the life
cycle of its products, from the raw materials, to its bottling
and distribution activities, through to cold drink equipment
in the marketplace and post-consumer waste.
The study found that the company's overall impact lies
most in electricity, used by cold drink equipment, and raw
materials used for making and packaging beverages. That is
why Coca-Cola HBC is increasingly extending collaboration
with suppliers of raw materials and manufacturers of cold
drink equipment, to address the impact of company's bottling
AmChamPerspective
operations. In Serbia for example, cold drink equipment both
in plant and in the market, uses ecological Freon R134A, thus
being aligned with Montreal Protocol.
Water Savings Program
As a beverage manufacturer, Coca-Cola HBC is keenly
aware that water is a vital resource that must be used
responsibly. The company's Social Responsibility Report sets
water savings goals for the Group countries and plants.
Despite increasing production volumes, complex product
mixes and stricter cleaning standards which requires more
water, Coca-Cola HBC water use, in absolute figures, has
remained relatively stable from year to year. In 2005 for
example, the ratio of total water used to beverage produced
for all operations was for 3.6% improved compared to
previous year. The Coca-Cola Water Savers Program, which is
on track to deliver substantial water savings, started in 2002
and it has been rolled out in all Coca-Cola HBC plants,
including in Serbia.
Not only the effective consumption, but also responsible
discharge of wastewater is utmost priority for Coca-Cola HBC.
In addition to efficient use of raw water, about EUR 2 million
in a Waste Water Treatment plant in Serbia has been invested
so far. Being one of the biggest ecological site-buildings in
Serbia, Coca-Cola HBC Waste Water Treatment Plant has
occupied more than 1600m2 of space, while it capacity today
is about 1800m3 water treatment per day.
Meeting Environmental Goals
Coca-Cola HBC identified the key environmental impacts
of its operations. In order to follow the achievement in
environment management, the company sets annually
specific targets on water, energy and solid waste, reviewing its
progress quarterly. Energy-saving projects have been
implemented by bottling plants and best practice is shared
throughout Coca-Cola HBC operations.
In Serbia, the company incorporates environmental
protection as an integral part of its business operations, in the
processes of business planning, with clearly set long-term and
short-term specific goals. Since February 2003, in use is natural
gas which significantly decreases atmosphere pollution and to
protect the air company also has chimneys which filter blown
gases. Furthermore, Coca-Cola HBC Serbia's whole internal
transport is being done by electric operations or natural gas,
thus contributing pollution prevention.
Active Participation
Coca-Cola HBC has committed to reduce, recover, recycle
and reuse on-site waste in all our facilities, and to dispose of
unrecoverable waste safely and with minimum impact to the
natural environment.
In Serbia, for example, the company recycles 84% of
auxiliary raw materials used in production process, such as
glass, paper, wood, metal, PET, PVC, waste motor oil, tires,
old accumulators, and cartridges.
Packaging plays an important role in safeguarding public
health, ensuring that food and beverages are delivered to
consumers in the safest, most hygienic and tamper-proof
conditions. In addition, consumers and retail customers
increasingly demand convenience. As a result, there has been
an increased demand for non-refillable packages. The
company has long taken an active role in multistakeholder
dialogue concerning the management of packaging waste,
aiming to close the loop. Together with other companies,
Coca-Cola HBC has set up packaging associations to work
with local authorities.
In countries where the European Packaging Directive
94/62 has been incorporated into packaging legislation,
national recycling and recovery organisations manage its
implementation, fulfilling industry's "takeback" obligations.
Coca-Cola HBC actively participates in these recycling and
recovery organisations and has been a founding member in
many cases. In Serbia, Coca-Cola HBC is one of the initators
of organizing the industry for active participation in finding
the best sustainable, long term solutions for a packaging
waste management.
Engaging with Stakeholders
Coca-Cola HBC is convinced that without cooperation of
all stakeholders and partnership with government, there is no
solution to establish both environmentally and business
friendly legislative. Together with the stakeholders, Coca-Cola
HBC in Serbia has already developed a dialogue for protecting
the environment, while keeping sustainable business and
further development. Sustainable and strong environmental
laws are prerequisite for good environmental practices.
However, the Company believes that there is no successful
implementation without stable and founded infrastructure.
Coca-Cola HBC established mechanisms to communicate
with employees, consumers, governments, share-owners and
other stakeholders on environmental performance, including
environmental reporting.
Raising Public Awareness
Environmental initiatives sometimes are not even
restricted to the industry operations, but are promoted
among the employees and local community. Knowing that
education of stakeholders and citizens is essential for longterm success, private sector volunteers its knowledge and
expertise to stimulate public awareness and head
environmental projects. Doing so, the Coca-Cola HBC
together with the Coca-Cola Company signed a
Memorandum of Understanding (MoU) with International
Commission for the Protection of the Danube River (ICPDR)
in 2005, for the joint protection and preservation of the
Danube. Under the agreement, an extensive range of
activities was implemented in Serbia in cooperation with
ICPDR and Ministry of Agriculture, Forestry and Water. With
the aim to raise awareness of Danube river basin protection
national media campaign under the slogan "Our River. Our
future" was initiated during past two years. The campaign
included variety of educational programs, cleans-up activities,
site protection and celebrations all over the country.
AmChamPerspective
15
Industry Perspective
Replacing sulfuric acid with carbon dioxide
Acid Test
By Srđan Krstić
Messer Tehnogas
A
cids have widely been used for a
long time in order to achieve a
desired pH value. Small amounts
of strong, concentrated acid are usually
enough to achieve the goal quickly, i.e.,
to decrease pH. But is it safe to handle?
The smallest mistake can cause a disaster.
The most commonly used pH
conditioner is sulfuric acid. Concerning
water treatment only, pH control is
applied in both potable and waste
waters. In potable waters, pH control is
necessary for successful flocculation
and coagulation; in alkaline industrial
waste waters or waste waters after
washing with detergents it is needed to
regulate pH before release to the
recipient. The polluter pays (or should
pay) fees if the off-water is not in the
appropriate pH range. It is our duty to
choose the means to accomplish it.
Sulfuric acid is one of the strongest
acids and also one of the most
dangerous. Sulfuric acid is nonflammable, but many reactions may
cause fire and explosion. Further,
handling this dangerous chemical must
be adequate and careful, which means
wearing full protective equipment.
16
Storage and transportation, again,
demand maximum caution, in order to
prevent any hazards.
Whenever sulfuric acid is used, it is
recommended to have some additional
basins in case of spillage. Leakage of the
acid would be very dangerous for the
environment, primarily for water
(surface- and groundwater). And clean,
"greenhouse gases," that are thought to
contribute to global warming .
As carbon dioxide is heavier than
air, it may accumulate in low-ceiling
spaces causing a deficiency of oxygen,
i.e., it is a choking gas and it is cold.
Storage and transportation are easier
than in the case of sulfuric acid.
Investment costs (storage and
„ Current levels of the greenhouse gases carbon dioxide and
methane in the atmosphere are higher now than at any time in the
past 650,000 years. (BBC, October 2005)
unpolluted water is the biggest wealth
of the present - we should always keep
that in mind.
Carbon dioxide has many
advantages and can replace sulfuric acid
in every single case of pH control. It is
an "environmental friendly" gas,
especially if we take into account that
Messer's carbon dioxide comes from the
ammonia production in the fertilizer
factory in Pančevo, where it is an offgas. In this way, its emission to the
atmosphere is prevented, and it is well
known that carbon dioxide is one of the
AmChamPerspective
dosing) of carbon dioxide represent
another important argument pro
carbon dioxide. The cost for the use of
carbon dioxide is three times less then
the sulfuric acid.
In the end, it can be concluded that
carbon dioxide is less dangerous substance
than sulfuric acid. All developed
countries, where awareness of
environmental protection is on a high
level, carbon dioxide technology may be
applied. France and Belgium, for example,
are the leaders in this application. Serbia
will follow the best examples.
Environmental Perspective
Joining the EU has brought about new requirements
New Legislation Underway
Various institutions are in charge of implementing environmental laws and
regulations, but the issue remains with the coordination of their jurisdiction.
Dr Marianne Vuković-Pal, Ecolab hygiene d.o.o. Beograd
Čedomir Mićić, Ecolab hygiene d.o.o. Beograd
Stevan Blagojević, Holding Institute of General and Physical Chemistry
F
or almost two centuries, the problem of environment
protection appeared non-existent. It was believed that
the biosphere was so, conditionally speaking, great that
it was impossible to change the conditions in it. But in mid
20th century, nature started showing signs that the situation
had changed. Acid rains, global warming, catastrophic air
pollution in industrial areas, massive death rates of living
beings in rivers, were a sign that the biosphere cannot absorb
the growing pollution of waters, air, and land.
The Declaration on the Environment adopted at the
World Conference of the United Nations in 1972 stressed that
"Man is entitled to the fundamental right to freedom,
equality and adequate living conditions in the environment
whose quality provides for his worthy living and prosperity."
The Stockholm Conference on the Environment held in 1972
raised awareness and marked the beginning of an
"environment protection era" and at the same time initiated
the Paris Conference of the states and governments of the
countries of European Economic Community (EEC) held in
that same year.
In almost all countries of the world, laws refer, on the one
hand, to defining of hazardous materials and the manner in
which these materials are handled, and on the other to
environment protection in the strict sense of the word, that
is, to the regulations that specify maximum concentrations,
procedures in case of accidents, networks of measuring
stations and similar.
Environmental Legislation in Serbia
The laws currently in force in Serbia that partly regulate
the sphere of environment protection are shown in the Table
1. Laws indirectly regulating the sphere of environment
protection, such as the laws on the protection of plants, the
laws regulating the use of fertilizers, the laws on health
propriety of foodstuffs and objects of general use and others
are not listed here. The table clearly shows that in former
Socialist Federal Republic of Yugoslavia (SFRY), later in the
Federal Republic of Yugoslavia (FRY), and now in the
Republic of Serbia, this problem was covered by numerous
laws and regulations. Rules on the Disposal of Unused Toxic
Agents and Packaging used for Packing Toxic Agents and on
the Manner of Withdrawal of Toxic Agents from Circulation,
The Official Gazette of SFRY No. 7/83, was at the time of its
appearance one of the first such regulations in Europe, and
later it was further elaborated as the Rules on Handling
Wastes with Properties of Hazardous Materials, The Official
Herald of the Republic of Serbia, No. 12/95 and Rules on
Documentation to be Submitted with the Application for the
Permit to Import, Export and Transport in Transit Wastes,
The Official Gazette of FRY, No. 69/99.
Various institutions are in charge of implementing
environmental laws and regulations, but the issue remains
with the coordination of their jurisdiction.
The Administration of Fire-Prevention Inspectors of the
Ministry of Internal Affairs of Serbia is in charge of the
verification of projects of warehouses and installations,
regular and additional inspections, expertise in case of
accidents and, of course, of pronouncing legal measures
which may include the ban of operation of a plant.
The Ministry of Science and Environment Protection (its
Administration for Environmental Protection) is the state
agency in charge of toxic materials, waste (according to the
Basel Convention), ionizing radiation sources, substances that
damage the ozone shield (according to the Vienna
Convention and Montreal Protocol), protected plant and
animal species (CITES Convention). This Ministry also
organizes environmental inspection and surveillance which is
selectively carried out at border crossings. At six border
crossings (Kelebija, Horgoš, Batrovci, Preševo, Gradina and
Vatin) environmental surveillance takes place daily, and at
other border crossings when need arises and when previously
announced.
Apart from border crossings, environmental inspection
exists as City and Republican environmental inspection.
Republican and City Health Institutes are in charge of the
examination of objects in general use and all food samples,
but they are also in charge of the very important testing of
air, water and soil, and perhaps even more essential, the
interpretation of data collected in this manner.
AmChamPerspective
17
Environmental Perspective
Environmental Legislation
Following are the laws currently in force that partly
regulate environmental protection in Serbia:
LAW ON THE PRODUCTION AND CIRCULATION OF
TOXIC MATERIALS, The Official Gazette of FRY, No.
15/95, 38/96 and 37/02
Rules on the Criteria for the Classification of Toxic
Agents into Groups and Methods for the Determination of
the Degree of Toxicity of Certain Toxic Agents, The Official
Gazette of FRY No.79/91
Decision on the Determination of the List of Toxic Agents
Permitted for Circulation, The Official Gazette of FRY No. 25/94
Decision on Marking Toxic Agents in Circulation, The
Official Gazette of FRY No. 38/97
Decision on the Requirements for Legal Subjects and
Entrepreneurs Engaged in the Production, Circulation and
Control of Toxic Agents, The Official Gazette of FRY No. 30/96
Rules on the Disposal of Unused Toxic Agents and
Packaging Used for Packing Toxic Agents and on the
Manner of Withdrawal of Toxic Agents from Circulation,
The Official Gazette of SFRY No. 7/83
LAW ON FUNDAMENTALS OF ENVIRONMENT
PROTECTION, The Official Gazette of FRY Nos. 24/98,
24/99 and 44/99
LAW ON ENVIRONMENT PROTECTION, The Official
Herald of Serbia, Nos. 66/91, 83/92, 53/93, 67/93, 48/94
and 53/95
Rules on the Methodology for the Evaluation of Hazard
of Chemical Accidents and Environment Pollution,
Measures for Preparation and Measures for the Elimination
of Consequences, The Official Herald of Serbia, No. 60/94
Vienna Convention on the Protection of Ozone Shield, The
Official Gazette of FRY, International Agreements, No.1/90
Montreal Protocol on Substances that Deplete the
Ozone Layer, The Official Gazette of FRY, International
Agreements No.16/90
Convention on the Prohibition of Development,
Production, Stockpiling and Use of Chemical Weapons and
on their Destruction, The Official Gazette of FRY,
International Agreements, No. 2/2000
LAW ON HANDLING WASTE MATERIALS, The
Official Herald of Serbia No. 25/96
LAW ON THE RATIFICATION OF THE BASEL
CONVENTION ON THE CONTROL OF
TRANSBOUNDARY MOVEMENTS OF HAZARDOUS
WASTES AND THEIR DISPOSAL, The Official Gazette of
FRY, International Agreements No. 2/99
Rules on Handling Wastes with Properties of Hazardous
Materials, The Official Herald of the Republic of Serbia, No.
12/95
Rules on Documentation to be Submitted with the
Application for the Permit to Import, Export and Transport
in Transit Wastes, The Official Gazette of FRY, No. 69/99
LAW ON TRANSPORTATION OF HAZARDOUS
MATERIALS, The Official Gazette of SFRY, Nos. 27/90 and 45/90
Decree on Road and Railway Transportation of
Hazardous Materials, The Official Herald of the Republic of
Serbia, No. 53/2002.god.
18
The Republican Weather Institute (HMZ) founded in
1888, has an Environment Control Sector and performs
daily controls of the waters of the Danube, Sava, Tisa, Velika
Morava, Južna Morava, Kolubara, Lim and Ibar rivers, and
daily controls of air quality in Belgrade and on the territory
of Serbia. This institution drafts monthly reports on its
findings.
EU Requirements
Closer contacts of the Republic of Serbia with the
European Union through the negotiations on association and
joining the EU have brought about new requirements, among
others, concerning regulations of this area. The procedure of
passing new regulations in the field of environmental
protection is underway, more specifically of the Law on
Chemicals, a part of which will refer to biocides covered by
the Law on Hazardous Materials and the Law on Air
Protection. Legislation on packaging and packaging waste is
also being considered.
All these laws include the provision that "the polluter
will pay compensation for polluting the air (or disposal of
waste) according to law." The legal procedure is
comparatively simple: the nature of the pollutant is
determined, MAC (maximum allowed concentration) is
prescribed, HMZ is authorized to measure air pollution at
some distance from the source, the monthly dose of the
polluter is summed up, and the amount of the pecuniary
obligation according to law is calculated. It is planned to
regulate the determination of pollutants and the MACs by
special rules that will be in accordance with EU directives.
The manners in which pollutants are analyzed are known
and available through ISO, JUS standards, and MAC through
recommendations of the WHO (World Health Organization)
and NIOSH (National Institute of Occupational Safety and
Health-USA).
International Perspective
Chemical industries in the EU will spend about EUR 4
billion in the next ten years on the introduction of REACH
regulation (controversial regulation that was the subject of
two-year negotiations between the EU and industries, that
refers to the Registration, Evaluation and Authorization of
Chemicals) aimed at the protection of the health of the
people and the environment by early identification of the
characteristics of chemicals.
The passing of this regulation directly affects 1.7 million
workers employed in chemical industries that produce 31
percent of world's chemical production and indirectly it
affects several million employees who use such chemicals (in
textiles, agricultural-chemical industry, automotive industry,
etc.). The regulation refers directly to 30,000 chemical
substances that have to be registered. It is believed that
consistent implementation of this regulation will bring EUR 2
billion worth of savings in health protection and about EUR
50 billion worth of savings in the next 30 years, through
reduction of costs of production and documentation, thanks
to the availability of REACH data base.
AmChamPerspective
Interview
Companies understand the direction of the development
of the environmental system worldwide
Businesses Move Faster
"Serbia has reasonably good environmental laws, but their enforcement is poor.
One of the reasons is that new laws highly decentralize the system for
environmental protection while local governments do not have the capacities and
need to be trained to perform the job."
W
hen the Report on the State of the Environment
was prepared in 2001 and 2003, it indicated that, in
2000, Serbia was 25 to 40 years behind developed
countries in regard to environmental protection (comparing to
various environmental segments). In the last five to six years,
that gap has narrowed significantly. The process of increasing
environmental performance to the level of developed countries
has been initiated, but it should not be left at that. The reformoriented government was committed in 2002 to environmental
protection as a critical support to economic development.
Developed countries consider the environment to be one of the
pillars of (sustainable) development, not just an individual
issue. Environment has to be incorporated throughout sectors
and policies, says Anđelka Mihajlov, former Minister for the
Protection of Natural Resources and Environment of Serbia in
the government of Prime Minister Zoran Đinđić (and further
under Zoran Zivković until March 2004).
Mihajlov is now continuing her mission through the
coordination of the regional NGO network, and also lecturing at
the Faculty of Technical Sciences of University of Novi Sad. She
is also part of UN and EU network of experts, member of the
Serbian Chamber of Commerce Council for Environment and
Sustainable Development and member of EBRD/ENVAC council.
This interview for AmCham Perspective begins with her
notion that Serbian legislation in the field of environment
could be accomplished in the next few years but a complete
system could not be achieved to the level of sustainable
production and consumption before 2020.
How is the legislation in the field of environmental
protection organized in Serbia?
We have initiated changes in environmental legislation
already in 2001. I led a team of dedicated professionals in the
ministry at that time, and we formulated the legal framework
for the system of environmental protection, with a whole set
of environmental laws adopted by parliament at the end of
2004. Being the member of expert team working on the
Serbian Strategy for EU Accession, I would like to point out
that we still have to ratify 27 international multilateral
environmental agreements and to transfer them into the
national legislation.
22
This means that Serbia is still at the initial phase in the
field of environmental protection with still much work
ahead. I have just published the book called "Sustainable
Development and Environment toward Europe in 95+ steps"
showing that we have accomplished only about 10% of our
"environmental job" comparing to the standards of the
developed countries.
We are approximately at the same level, if not leading, in
comparison to the other countries of the West Balkans,
mainly due to a fact that we have a developed instrument for
environmental impact assessment. It is being applied in our
country, regardless of all existing problems.
I also want to add that the Partnership Agreement with
the EU is the driving force for the environmental sector,
where the environment is one of the six priority sectors.
Understanding the direction that the development of the
environmental system has taken worldwide, companies have
found it is in their interest to
„ ”In the coming years, "go faster" than governments
(at national and local level).
the environmental
sector in our country
will become more and
more important...I have
to point out that two
issues will be the
"business" of the
environmental sector:
waste management and
waste water
management.”
What is it that the
companies see as their
interest? Many see only
huge costs.
The interest of companies
is the chance or condition for
their products to reach
international markets
without difficulty. In the
documents of EU and WTO,
there are non-tariff barriers
to trade, that could be read as
environmental barriers,
among others. For that reason, for example, a company from
the meat industry cannot sell its products at the actual price
at international market, because the issue of waste water or
waste management may not be solved. It happens that due
to competition on the market, companies start introducing
responsible corporate business instruments, beginning by
introducing ISO 14000 standards. The US has a great deal of
AmChamPerspective
Andelka Mihajlov, President of the Environmental Ambassadors
experience and has assisted. In the short term, investing into
environmental protection can be viewed as an expense, but
in the long term it is only a benefit. The understanding of
environmental issues and the introduction of new cleaner
technologies is making the distinction between companies
with and without a vision. Those who think in the short
term see only the costs; however, in the long term, it is an
investment. When you have a factory with old technology,
which is the most frequent in Serbia, "curing the illness" of
pollution is one option. Now the law prescribes tariffs to be
paid to the budget according to the quantity of pollutants
released into the environment. Thus, the first possibility is
for companies to constantly pay money into the budget if
and proposed (that is, the government in which I was
minister) in complete partnership with the citizens (we have
visited 46 cities) and industry, the enacted law has kept the
concept, but the transitional period has not been set properly.
For instance, a transitional period of one year has been given
for solving some technological problems in environmental
protection and for many that is unfeasible. Furthermore,
there are factories that, if they paid the tariffs assigned for the
pollution they cause, could close down. A huge complex such
as EPS (Serbian electric power), if it paid for the pollutants by
the kilo and for its release into the environment, the monthly
penalties would be so huge that they would not be able to
work.
they pollute the environment, the other one is to invest into
filters and treatment facilities (equipment for emissions
control) and the third one is to change technology
completely towards cleaner production. Viewed in the long
term, the best thing is a new cleaner technology.
That was not well projected and assigned. The industry
must have realistic transitional periods it can follow. If not,
the law will not be implemented, will have consequences by
court, or resort to a false representation of data in order to
survive. The assessment of the implementation of the latest
by-laws will give us a clear picture and directions for
regulation improvement.
But replacing old technology requires a great deal of
effort and is not possible to be achieved everywhere.
Privatization has been positive in that respect. It can be
said that our country is an example of an "environment
friendly privatization" because the owner is obliged to do
business in accordance with the national legislation and, in
the majority of privatized companies, implementing the
conditions it has had a positive impact.
Have the laws made in the previous few years obliged
companies to do that?
Yes, by laws: the laws on Environmental Protection, on
Strategic Environmental Assessment (SEA), on Environmental
Impact Assessment (EIA), and on Integrated Pollution and
Prevention Control (IPPC). In relation to the concept of the
system of environmental protection that we have structured
What is the foreign investors' assessment of the
obligations towards the environment? Do you know what
their objections are?
It is not in the interest of Serbian citizens to be a place of
dirty technologies. Decision-makers have to take care of
citizens and of the environment. The companies that come
here also have to do what they do in their own countries. I
gave a lecture at a GLOBE Conference in Vancouver, Canada,
recently, and I shared my view that Serbia is good for
environmental technology investments. I have to point out
that we have many advantages in comparison with the other
countries of region. We have capacities and educated people,
as a first step for investments. There is no communication
barrier. We are attractive for investments, with the fact that
AmChamPerspective
23
Interview
we have laws which can seem strict.
We expect to investors to assist us in implementation of
the law. In that respect, it is important to have a proper
institutional set up, including an Environmental Protection
Agency as a separate institution, like in US and EU. The US
EPA, in fact, did perform training courses in Serbia.
Is environmental protection given sufficient weight in
our country?
In the coming years, the environmental sector in our
country will become more and more important. In
developed countries, it is not rare that those concerned with
the environment occupy top positions. In Germany, for
instance, before assuming her present position, Angela
Merkel was the Minister of the Environment, in the US,
former Vice President Al Gore led the environment sector. A
series of examples confirms only one thing: dealing with
environment enables you for top level diplomacy, linking
environmental diplomacy and foreign policy.
In addition, the UNEP, OSCE, and Partnership for Peace
activities have an environmental security dimension. This
year the non-government sector held a regional conference
on June 5 on World Environmental Day, approving a
Declaration on Environmental Cohesion of SEE as a tool
for Sustainable Development. The NGO Network Forum
EfE07 and Environmental Ambassadors are in the process
of ensuring that the Declaration will be on the agenda of
the UN Pan-European Ministerial conference
"Environment for Europe," to be held in Belgrade in
October 2007.
I have to point out that two issues will be the "business"
of the environmental sector: waste management and waste
water management. In the coming decades, waste
management for different waste categories and streams, like
municipal waste, medical waste, chemical waste, will be
important in this region.
Are there any objections that a large number of
regulations refer precisely to the environment in the
process of joining the EU?
The majority of regulations are in the agricultural sector and
then in the environmental field. We have to approve about thirty
laws on ratification of the international environmental
agreements and about 20 sector laws with by-laws and regulations,
and to have people and institutions to implement them.
Developed countries most frequently give a 0.5 to 2% of
their GDP for the environment, and we are far from it. There is
an estimate that developing and transition countries should
give 2 to 4% of their GDP to the environment, in order to
"catch up" with the developed ones. Clearly, all that cannot be
done immediately, but it must be done in continuity and
having development goals. Serbia should complete its
legislation in the next five years, with realistic transitional
periods and to build its institutions and upgrade human
capacities. The companies' interest should be in long term
investments into a system for environmental protection. It is
necessary to keep explaining that continuously. As a
professional and Environmental Ambassador, I am
continuously on that mission.
24
Steps Towards
Environmental degradation could have
very negative influence on economic
performance and long-term growth.
Ignoring the actual or potential problems
related to the natural environment could
lead to increased external expenses.
By Ivan Šentevski
Responsible Business Initiative
T
he strongest social movement to insist on
responsibility from business has been the
environmental lobby. It has both "Brown" and
"Green" parts, the former dealing with issues such as
smokestack pollution and nuclear waste, the latter with
biodiversity: the protection of ecosystems and landscapes,
and plants and animals. The great ecological catastrophes,
such as 1989 Exxon Valdez oil spill in Alaska, the largest
spill in US history, and problems which are becoming more
and more critical, such as global warming, the depletion of
the ozone layer, and loss of biodiversity, have significantly
heightened the global discourse of responsible business and
emphasized the need of including businesses in the process
of solving them.
The European Union is strategically committed to
sustainable development, so the process of approaching the
EU is simultaneously the process of embracing the concept
of sustainable development. In the EU, there is an
established practice, confirmed through the 2000 Lisbon
strategy, that financial support is provided only for those
activities which positively contribute to sustainable
development. In the past years, it has become clear that if
Serbia wants to become a part of this process, it needs to
make significant structural changes in its economy,
politics, and society as a whole in the way it manages its
own natural resources.
National legislation in area of environmental protection
(over a hundred regulations) covers many issues such as:
utilization of forests and water, geological explorations,
fishing and hunting, waste management, noise, quality of
air, a change of climate and ozone layer protection, forest,
water, and soil conservation, biodiversity conservation,
industrial risk management, GMOs, hazardous materials,
and nuclear security. There is also a set of laws which
ratifies a number of international agreements. The year
2004 was so far crucial; in this year four major
environmental laws were adopted. Beside these, some of
AmChamPerspective
CSR & Environment
Sustainability
„ The survey showed that environmental protection was the most
neglected CSR issue in Serbia. Although it was the most commonly
listed CSR issue by the company representatives it was not among the
most important on the agenda of their companies.
the issues are stressed in Free Access to Information of Public
Concern Law as well.
A section which deals with protection of the environment
was included in 2003 National Strategy for Poverty Reduction
(better living conditions, rural development, health,
pollution). In the same year the National Strategy for Waste
Management was adopted and the process of creating
National Ecological Action Plan (NEAP) and a series of Local
Ecological Action Plans (LEAP) have successfully started.
However, many of the issues remain under-regulated, and
there is a lack of some of the very important instruments
such as a National Registry of Polluters (although one exists
for the Belgrade region). On the other hand, the
administrative capacity to implement these laws and
decisions, as well as other reforms, remains weak, and the
entrepreneurial culture certainly needs further development.
One of the main obstacles in this sense remains the fact that
some of the major polluters (the Pančevo Oil Refinery, RTB
Bor) are still state-owned and have large technological and
structural problems.
Perception of Importance
In March 2005, RBI program launched in cooperation
with SMMRI a comprehensive survey, the goal of which was
to present experiences and attitudes about CSR held by
almost all relevant agents on the social scene in Serbia.
According the survey results, environmental protection and
relationships with the community were the two most
commonly CSR-related issues listed by company
representatives. However, neither of these two were the first
nor the most important CSR items on the agenda of their
own companies. Furthermore, only four out of 49 companies
stated that both were among the top three important CSR
issues for their companies.
The survey showed that environmental protection was
the most neglected CSR issue in Serbia. This suggests that
declarative awareness of importance of an issue by no
means implies a readiness to appropriately engage in its
resolution.
Representatives of all local companies and most
international companies said that their companies, apart
from making profit, have an additional, clearly defined
mission. However, it is difficult to distinguish the most
commonly stated additional missions (concern for
consumers, development and advancement of the company,
positioning of the company on the market) from the
primary, direct function of making profits. Environmental
protection lies very low on this scale (only 6% of
interviewed mentioned it).
AmChamPerspective
25
CSR & Environment
On the other hand, the awareness among citizens about
CSR is very low as well. Citizens, just like companies, are not
able to consider their "benefit" as a part of the whole, and
instead perceive their own interest only through the eyes of
their current role as either consumers or employees of
companies, so that they eventually work against their interest
in an alternate role. In both cases, environmental protection
is far from their primary concern (23% as consumers, and 9%
as employees).
Find Your Way
It cannot be denied that many of economic activities
have negative impact on the natural environment and
human health, so eliminating or mitigating natural
degradation inevitably demands a concrete action.
However, many politicians, economists, and industrial
groups claim that introducing of a strict regulations and
expensive technologies in the field of environmental
protection would fetter economic development and
increase unemployment. Such assumptions result from a
low awareness that environmental degradation could have
very negative influence on economic performance and
long-term growth, and that ignoring actual or potential
26
problems related to the natural environment could lead to
increased external expenses.
Expenses related to the depletion of natural resources are
often hidden and not taken into consideration in the scope of
analysis of expenditures and benefits from a certain activity.
The more careful handling of natural resources or lower
emission of harmful chemicals and waste could very well help
companies to reduce their expenditures which could occur
because of pollution and eliminate potential risks of
expensive lawsuits.
Public concern regarding the impact of commercial
activities on the environment has increased significantly in
recent years. There is a growing awareness of the need to
implement policies which enable sustainable development.
Sustainable development requires the various pillars in
society to find a balance between economic growth and social
inclusion with the preservation of a healthy environment for
future generations. Environment-based CSR projects go
beyond the legislative obligations and promote greener
economic growth. The results of these projects are
quantifiable and are measured as part of a pursuit for
continuous improvement. The most successful CSR projects
in this area are those that deliver solutions that are both
environmentally and business friendly.
AmChamPerspective
AmCham Environmental Committee
Advocating for Environment
and Economic Growth
AmCham Committee works to establish a working
relationship between the business community, governmental
authorities, business associations, media
and other relevant organizations to address significant
environmental issues.
I
n the past decade the European
Union has made significant
legislative policy changes in the
area of environment. It ratified 1997
Kyoto Protocol, aiming to reduce net
emissions of certain greenhouse gases,
and also adopted the Aarhus
Convention. By adopting those two
legislations the EU made an
environmental contract about
controlling carbon dioxide (CO2), and
ensuring government accountability,
transparency and responsiveness,
granting the public rights and imposing
on the public authorities' obligations
regarding access to information and
public participation. Serbia's quest to
bring the country into Euro-Atlantic
integrations has included major socialeconomic transition and adjustments
towards the EU legislation. This is
especially true in the area of
environmental legislation. Serbia began
implementation process of the Aarhus
Convention and Kyoto Protocol in
2005 with the Ministry of Science and
Environmental Protection serving as
the national coordinating body.
Recognizing the need of the
businesses to monitor the
implementation of the environmental
legislation, in September 2005
AmCham formed the Environmental
Committee. The mission is to promote
the need for a continued economic
growth and protection of natural
environment in Serbia. Chaired by
28
Sanda Parezanović (Coca-Cola HBC),
co-chaired by Miles Stipanovich (U.S.
Steel Serbia) and Dr. Gert-Walter Minet
(Ball Packaging) the committee's goal is
to advocate actively for progressive
legislation that will establish a balance
between environmental protection and
economic growth.
By sharing information among its
members, the Committee aims are to
raise awareness of environmental
practices among the business
community, develop a dialogue
between the business community and
all relevant governmental authorities,
educate the business community and
the government authorities regarding
the required environmental legal
framework and its implementation
necessary to have a healthy and
sustainable climate for business
development. The committee also
works to establish a working
relationship between the business
community, governmental authorities,
associations, representatives of media
and other relevant organizations to
address significant environmental
issues.
Round Table with Serbian
Recycling Agency
On March 3, 2006 AmCham
Environmental Committee organized a
round table discussion on the issue of
recycling with Gordana Perović
AmChamPerspective
(Serbia's Director of Recycling). The
event took place in the state of the art
facility of Ball Packaging, and it
gathered 30 participants representing
some major green field investors and
government officials from the Serbia's
Recycling Agency. Perović emphasized
the Agency's promotion of recycling in
Belgrade's schools and on Ada
Ciganlija, as well as its efforts in
developing environmental protection
for national parks Kopaonik and
Đerdap. In addition, concerning the
role of the private sector, Perović
strongly stressed the need for it to
harmonize its operations with EU laws
and regulations.
At the same Round Table, Jelena
Kiš of Ball Packaging ReCan Project
laid out the plan for the Collection of
Cans School project involving
collection of the cans followed with
workshops and educational materials
to initiate the habit of can-recycling.
She also elaborated on the process of
setting up recycling centers on the
outskirts of Belgrade. The so-called
"buy back centers/collection points"
are intended to reinforce the supply
chain from individual collectors to
recycling centers and to help create
jobs.
Recycling Projects
AmCham members decided to
focus on the recycling and raising
awareness and initiate the habit of
recycling among the Serbia's youth.
Relating to the ReCan's can
collection venture, project will
include paper and PET (PolyethyleneTerephthalate Plastic) collection,
targeting mainly primary and
secondary schools. The members also
favored educational movies
sponsorship on waste management,
water, biodiversity, geological
inheritance and exploitation of
natural resources.
In September 2006, in the spirit of
good neighbor, AmCham will join the
U.S. Embassy in the plan to "adopt" a
one kilometer stretch of riverfront in
New Beograd for the series of the
Riverfront Clean-up events. These
events will showcase the launch of the
economic development projects and
recycling, highlighting all companies in
the event in the extensive press
coverage.
Challenges Ahead
The upcoming EU directives and local
legislation represent the challenges for
local and international investors.
Especially, this is true in the area of Air
Protection and Packaging Waste handling.
The European and local legislation on
waste management makes local businesses
obligated to fulfill - recovery & recycling
quotas. It is critical to the industry to
arrive to a manageable sustainable
packaging waste scheme that is cost
efficient, achieving the legal obligations
and preventing refillable quotas, deposits
on non-refillable containers and
mandatory packaging taxes.
In order to properly manage
packaging issues, the committee
members like Coca-Cola, TetraPak and
Ball Packaging agreed on creating the
Packaging Association that will:
• be the industry counterpart in a
dialog with the government
• unite industry to be one voice
AmChamPerspective
• participate in preparing a new
packaging law
• initiate creation of a Packaging
Recovery Organization, financed
by producers/members, with the
primary objective to manage the
collection and recycling of the
packaging waste from the market
in order to reduce the
responsibility of producers.
The mission of the Packaging
Association is to unite the industry of
packaged goods in "one voice" and to
advocate for legislative changes in the area
of waste management while promoting
the system of sustainable development.
AmCham Environmental Committee
invites all AmCham members to join the
committee. For more information on the
committee meetings and activities, please
contact Miša Ognjanović at
ognjanovic@amcham.yu.
29
Legal Perspective
In anticipation of the draft Law on Air
Up for Fresh Air
As it stands now, the new Law, to a great extent, will not be a piece
of legislation that can be applied directly. Therefore the status quo
will continue and all the other laws and subordinate legislation in
direct relation to air protection will continue to apply.
Lidija Udovički, Solicitor,
Karanović & Nikolić Law Firm
I
n order to better understand the current situation in law
and practice and the changes anticipated when the draft
Law on Air is passed, it will be useful to have an overview
of the draft within the broader context of the current
environmental and administrative law and EU policies and
legislation on air quality and protection.
The Chapter on Air Protection of the repealed 1991 Law
on Environment will be superseded by the new Law on Air as
well as all the articles of the Law on Environment Protection
currently in effect that refer to air protection1 . However, as it
stands now, the new Law, to a great extent, will not be a
piece of legislation that can be applied directly. Therefore the
status quo will continue and all the other laws and
subordinate legislation in direct relation to air protection will
continue to apply2. The draft is in effect a framework,
adopting the air protection concepts and methodology of the
EU Council Directive 96/62/EC on ambient air quality
assessment and management. It basically incorporates the
environmental protection principles, policy-making and
planning competences of public authorities and
environmental protection measures contained in the
environmental laws enacted in 20043 in Serbia with their
scope adjusted to air protection.
The proposed draft lays the groundwork for modernizing
existing legislation and for future harmonization with the EU,
and to serve as the basis for the enactment of regulations
aimed at developing and implementing EU directives and
1The Chapter on Air of the Law on
Environment published in the Official Journal of the
Republic of Serbia No.
69/91,83/92,53/93,67/93,48/94,53/95, remains in
effect after the Law was repealed by the new Law on
Environment Protection published in the Official
Journal of the Republic of Serbia No.135/2004 (LEP)
2Rules on emission levels, the manner and
frequency of measuring, and data recording,
published in the Official Journal of the Republic of
Serbia No.30/97, 35/97; Rules on emission levels
and the methods for their measuring and criteria
for setting up measuring points and the manner
30
standards. As a result, it will bring a gradual rehabilitation of
air conditions in Serbia by providing a framework for
investors to plan and include in their budgets and business
plans environment related expenses, and encouraging public
access to information and participation
in the licensing process. The foremost
„ Law reflects aims of these processes is to achieve
Serbias' desire control of emissions from large
to deal with
combustion plants and mobile sources
air quality in a and improve fuel quality and other
more focused features of stationary sources of air
pollutant emissions.
manner
Experience to date suggests that the
success and effectiveness of this
framework law, as well as its positive or negative impact on
investors and the rehabilitation of Serbia' s air quality
through the regulations yet to be enacted will depend on:
1. The regulators' responsiveness, in the process of
tailoring Serbian policy on major industrial sources of
air pollution, to the major concerns of investors,
fundamentally legal certainty and the length of
administrative procedures, and to the financial
capability of major polluters to make the required
investments in obsolete industrial plants and related
environmental recovery. Greater efforts to maintain a
constructive dialogue with the environmental
of recording data, published in the Official Journal
of the Republic of Serbia No.54/92,30/90; Decree
on the program for air quality control for 2006
and 2007, published in the Official Journal of the
Republic of Serbia No. 23/2006
3LEP is the fundamental framework law in area
of environmental protection in Serbia and it sets
down the principles of environmental protection
and policy-making, and defines a whole variety of
tools-both voluntary and mandatory- that can be
used to achieve this objective. In general policies making the LEP principles are applied in
conjunction with the Law on Strategic
AmChamPerspective
Environmental Assessment published in the Official
Journal of the Republic of Serbia No 135/04 (SEA).
The most important and thoroughly implemented
measures for environmental protection in relation
to individual project developments and industrial
activities are developed by the Law on
Environmental Impact Assessment published in the
Official Journal of the Republic of Serbia No 135/04
(LEIA) and the Law on Integrated Pollution
Prevention and Control published in the Official
Journal of the Republic of Serbia No 135/04
(LIPPC), transpositions of the Directive 97/11/EC
and Directive 96/61/EC respectively.
Legal Perspective
stakeholders,4 including relevant industry and investor
group representatives, and coordinating these efforts
with those of other sectors and policies that may have
an impact on air pollution.
2. Becoming thoroughly informed regarding the history of
environmental solutions, consequences, experience and
failures throughout the EU and the USA
The main provision of the draft law envisage:
1. The introduction in Serbia of the three air quality
zones: 1st category-clean air, 2nd category-some
concentration of pollutants levels are not complied
with but the alert thresholds are not exceeded, 3rd
category-alert thresholds are exceeded in relation to one
or more pollutants. These air quality zones in
combination with the Republic, Autonomy Region and
local nets of measuring stations will serve as a base of
the 2- yearly air protection policy-tailoring by central
and local authorities and for enactment of the ad hoc
protection measures.
2. Alert thresholds for precautionary measures to be taken
by local, autonomous region or Serbian government
environmental authorities.
3. Introduction of greenhouse quote trade on ratification
of the Kyoto protocol and UN convention on climate
change.
4. From two years ago the final draft of the EU fuel
standards are ready for their enactment and application
in Serbia, but the enactment of these regulation was
postponed by the Government until the industry and
mobile sources of are judged to be able to comply with
them. The regulations currently in effect will continue
in force after the draft Law takes effect.5
5. The control of importation of the ozone damaging
substances necessary for industrial use will continue to be
combined competences by the Ministry for Science and
Environmental Protection and costume authorities6.
The Government of Serbia is competent to enact national
emission limit values (ELVs) and, in the case of ozone, target
values. In line with the EU Air Quality Policy7, in order to
avoid, prevent or reduce the concentration of harmful air
pollutants the Law on Air will contain elements of flexibility
to allow local authorities to enact more stringent than
national ELVs in consideration of the characteristics of
geographical location and local environmental conditions.
The ambient air quality is to be assessed locally against limit
values and/or alert thresholds, and as regards ozone, target
4As defined by the Directive.
5Rules on technical and other requirements
for the oil fuels, published in the Official Journal
of the Republic of Serbia No. 51/2004; Law on the
Road Safety, published in the Official Journal of
the Republic of Serbia No. 25/97
6The Ministry is to issue for each contingent
of such substance the Approval, and costume
authority acts upon in accordance with costume
regulations. Currently the costume Decision on
Procedure for Certain Importation/Exportation
Goods, published in the Official Journal of the
32
values and/or limit values, taking into account the
population size and ecosystem exposed to air pollution.
Because these actions require time to be implemented and
become effective, temporary margins of tolerance of the limit
value may be expected to be set by the derivative legislation.
However, from the point of view of an economic evaluation
of long-term air protection policies8, the draft Law leaves
completely open the question of the limit values for specific
atmospheric pollutants9, ozone reduction and acidification
targets, and economically feasible national emissions ceilings.
These are all very complex questions, and it is impossible to
predict how the Government will deal with them.
Industrial installations and Facilities
The measures and requirements set by the draft Law for
the operation of industrial installations and activities are
always in conformity with the LEIA and LIPPC. The
procedures regulating obligations with regard to air
protection under the new Law in the construction,
renovation or acquisition of industrial installations will
remain the same as now. If the proposed project development
is on the LEIA projects list10, a requirement for obtaining the
project development permit from the competent planning
authority is to obtain the approval of the EIA Report by the
competent environmental authority.Installations and
activities requiring the IPPC Permit must take into account
the whole environmental performance of installations, and
this includes emissions to air. The Permit's emission limit
values must be based on the
approved EIA Report data11 and
„ There are
the Best Available Techniques
concerns in
(BAT)12 . In determining individual
Permit limits the competent
relation to the
rules, practice and environmental authority will take
into account, the technical
enforcement of
characteristics of the installation,
commercial and
the air quality zone and the spatial
industrial secrecy... planning general regulations
requirements covering the
proposed project development location.
While we welcome all the efforts to bring Serbia's theory
and practice into line with the EU in all areas of the law and
economy, including the current implementation of the
public's right to access to information and participation in
licensing procedures13 for projects that may have an
environmental impact, there are concerns in relation to the
rules, practice and enforcement of commercial and industrial
secrecy that this novel approach for both the local
Republic of Serbia No. 114/05 contains the list of
the ozone damaging substances the importation of
which requires the Ministry Approval.
7Emission limits values (ELVs) and
concentration of pollutants limit levels for some
pollutants are currently in force in the Republic of
Serbia are more stringent for the heavy industry
polluters than the overall EU standards. However, it
is to be noted that EU Member States may maintain
or require locally to be imposed more stringent
ELVs than these set down in the Directives.
8Refer to the environmental economics
AmChamPerspective
studies made for the economics unit of the
Environment DG of EU. For instance, throughout
the EU member countries the analysis were
performed using a detailed model of emission
sources and cost of pollution control technologies
to assess what national emission ceilings would be
most cost effective in meeting the different
possible targets for reducing ozone and
acidification. With regard to air quality targets for
CO, Benzene, N20, PAHs certain heavy metals the
studies examining the benefits to human health of
reducing concentrations of these metals in the air
administration and citizens, raises in a transition country
such as Serbia. It is considered that public participation rights
should not take precedence over the protection rendered by
law and practice to industry from the injury that may be
caused by the incautious release of information to the public.
Investors are not currently given enough incentives to
help them to cost-efficiently invest in cleaning the
environment, rehabilitating obsolete industries or in
greenfield projects based on cleaner (imported) technology.
A cleaner technology incentive exists in the effective
implementation of the "polluter pays principle"14. However
tax incentives for rehabilitating the environment do not exist
and customs free import of clean technology is possible but
the investor must deal with the unwieldy procedures under
the temporary regime of the Law on Foreign Trade until the
conclusion of Serbia's negotiations to join the WTO. The draft
Law proposes customs excises and tax waivers for air
protection technology to be developed with further
enactments within 3 months from Serbia's ratification of the
to meet different possible limit values, and
examining the economic costs that would be
involved in meeting these limit values.
9Directive 2000/69/EC the prescribed limit
value for carbon monoxide must have been met
by 2005 and for Benzene by 2010. Directive
1999/30/EC the prescribed health limit values for
SO2 and PM10 must have been met by 2005 and
for NO2 and PB by 2010
10Rules on the Projects which are Mandatory
EIA and Projects for which EIA may be required
11All the installations and activities required by
Kyoto Protocol. There is no indication, however, of when the
ratification is planned to take place.
The draft Law is silent on the unresolved issue of a grace
period for investors to restructure and gradually bring the
operation of industrial installations acquired in the process of
privatization or from private owners into line with prescribed
emission standards. In addition, liability issues for
environmental damage upon the change of ownership
(public-private and private-private) and future claims arising
from environmental damage existing prior to an ownership
change remain without being clarified. The enactment of
detailed regulations will be needed to make existing
provisions in Serbian legislation applicable in this regard.
In conclusion, the draft law on Air is a welcome piece of
legislation and reflects Serbias' desire to deal with the issue
of air quality in a more focused and precise manner. As with
all legislation the proof of its effectiveness lies in its
implementation and we look forward to a balanced and
consistent approach adopted towards all polluters.
LIPPC to issue the IPPC Permit must carry out EIA
and obtain the EIA Report Approval, but not all
LEIA projects are required to issue the IPPC Permit
12The Rules on Best Available Techniques
Determination published in the Official Journal of the
Republic of Serbia No. and Directive 96/61/EC. For the
introduction of the substantial changes that must be
made to installations already lawfully operating EU
dead line is 2007 and in the Republic of Serbia 2015.
13The principles of the Aarhus Convention
on Access to Information, Public Participation, in
Decision-Making and Access to Justice in
AmChamPerspective
Environmental Matters and Directive 2003/35/EC
are already in application through the LEP, LSEA,
LEIA,LIPPC
14Under the Article 85 and 87 of LEP. The
Article 87 gives very broad competence to the local
authority which led to judicial challenge of the
polluting compensation payments that were enacted
by some local authorities in Serbia. The Ministry for
Science and Environmental Protection put forward
the proposal for amendment of this Article 87,
narrowing the local authority competences to
impose the compensation payments for pollution.
33
New Members
American Chamber of Commerce in Serbia
34
Honeywell International Inc. was founded in 1886
in Minneapolis, USA and now it is Fortune 100
company with 100,000 employees in more than 100
countries word wide with turnover of 27B$ in 2005
becoming one of most favorite US and global brands.
Honeywell solutions, products and services touch
the lives of most people every day.
Whether you are flying, driving a car, heating or
cooling your home or office, control and manage your
security, energy and facility - you need us.
Our portfolio consists of four strategic business
groups:
Automatic and Control Solution (ACS), Specialty
Materials, Aerospace and Transportation and Power
Systems.
We were presented in Serbia via distributors and
different representatives for decades.
Now we established in November 2005 our direct
organization in Serbia - Honeywell d.o.o. Beograd in
order to start with ACS - Building Solutions activities
and to serve foreign and domestic investments in this
country.
Building Solution in Honeywell means the
integration, management and control of HVAC
(Heating/Ventilation/Air
Condition),
Fire
Detection&Alarm, Security&Access Control, Digital
Video Management, Lighting Control&Retrofit, Smoke
Control, Energy/Water/Gas Management etc. - all
available on open interface&protocol standards
connected to TCP/IP.
We already have clients in Serbia and we expect to
grow dynamically with your business and to be parner
for your success!
Alliance One Tobacco d.o.o Beograd (AOT), is part
of Alliance One International, Inc, (AOI). With global
headquarters in Raleigh, North Carolina, AOI was
established by the merger of DIMON Incorporated and
Standard Commercial Corporation on May 13, 2005,
bringing together 200 years of combined experience
and expertise, creating a leading independent leaf
tobacco merchant, second in the world.
Alliance One purchases tobacco grown in over 45
countries and serves manufacturers of cigarettes and
other consumer tobacco products in over 90
countries. Alliance One proudly claims broad
geographic processing capabilities, a diversified
product offering, and an established customer base,
which includes all of the major consumer tobacco
product manufacturers. Alliance One selects,
purchases, processes, packs, stores, ships, sells, and in
certain developing markets such as Serbia, provides
agronomy expertise and financing for growing leaf
tobacco.
Since founding the company in Serbia in March
2004, AOT has established cooperation with more
than 3,000 farmers and in 2005, signed contracts with
more than 1,000 farmers, who were given advances in
the form of seedlings, fertilizers, protective equipment,
greenhouses, curing barns, etc. AOT finances farmers,
who generally pay back the advances though raw
tobacco, and for larger investments, such as curing
barns and greenhouses, farmers are given a multi-year
pay-back period. Besides this, Alliance One organizes
farmer seminars and field visits, in order to enable
them to see in practice the advantages of new
technologies it is striving to introduce in Serbia.
Honeywell d.o.o. Beograd
Belgrade, Bulevar AVNOJ-a 64a
Tel: +381 (0)11 212 03 55
Fax: +381 (0)11 212 06 30
Web: http://buildingsolutions.honeywell.com
Email: lidija.milosavljevic@honeywell.com
Alliance One Tobacco d.o.o. Beograd
Kopitareva gradina 3
11000 BEOGRAD
Tel: +381 11 334 06 04
Fax: +381 11 334 11 46
Web: www.aointl.com
AmChamPerspective
wishes a warm welcome to the new members
Tuck Vision is an international cine film and
videotrade production and distribution company.
In its years long history Tuck has quickly emerged
to become the leading company with the exclusive
distributor deals for major renowned international film
companies Warner Bros, Sony Pictures International
and 20th Century Fox. Tuch is also working with
biggest independent studios like Summit, New Line,
Lake Shore....
On the Home Entertainment side Tuck company
distributes Warner Home Video, Universal and
Paramount titles.
Tuck has released the biggest movies among which
are Harry Potter franchise, Lord Of The Rings trilogy as
well as the famous local production, movie Zona
Zamfirova, which is among the highest grossing movie
in Serbia and Montegro.
Tuckwood Cineplex, located in the very heart of
Belgrade downtown, with its highest quality video and
sound equipment,five halls, and 522 seats avalaible.
Tuckwood Cineplex is also a very important part of
the company.
Apart from this Tuck recently got involved in
localization, subtitling and dubbing.
So far, some of the bigger dubbing projects were
Racing Stripes, Ice Age 2, Lucky Luke, Garfield 2.
Currently in production Open Season, Timon and
Pumba & Aladin.
The last but not the least, Tuck is the organizer of
CINEMANIA, popular blockbuster show which is
considered to be among the three most important
cultural events in the country.
TUCK VISION
Tel: (+381 11) 283 06 03
Fax: (+381 11) 283 06 12
E-mail: office@tuck.co.yu
Web: tuck.eunet.yu
From its modest beginning in 1903, Kraft Foods has
developed into the second biggest food concern in the
world. With 98,000 employees, over 50 brands in 155
countries, and annual turnover of over $30 billion, the
name Kraft has become synonymous with high quality
food and packaging.
Kraft achieved global success because two basic
business priorities were observed at all times - quality
and preservation of food. Next to quality and safety,
the continuous introduction of innovations is the
company's fundamental principle.
As a legal entity, the Kraft Foods Company has
been operating on Serbian market since May 2005. Its
business policy is in no way different from the
company's global policy.
According to the MEMRB research, with the
market share of 36.9%, Kraft is the undisputed leader
in the Confectionary segment. While the company
holds the second position in the Instant Coffee
segment with the market share of 21%, it is the leader
of the Coffee Mixes segment with the market share of
41%. Last year, Milka has been voted the most
favorable brand in the entire region on two occasions
-in a poll conducted by the PGM Agency, and at the
Belgrade Brand Fair.
Kraft Foods is also very responsible with regard to
its position in the society. In 2004, over $90 million
was donated to those who were in most need of help.
In Serbia and Montenegro, the money was donated to
children without parental care.
In harmony with its global vision, Kraft Foods in
Serbia assumes responsibility, remains determined in
its intention to help and enable us to eat and live
better.
AmChamPerspective
Kraft Foods Beograd d.o.o.
Francuska 81, Beograd, Serbia
Tel. (+381 11) 3032 333
(+381 11) 2080 775
E-mail: ARaskovic@krafteurope.com
35
International Perspective
In USA, air pollution is regulated by the 1970
Clean Air Act covering the entire country
Breath of Life
By Jelena Popović
TRC
I
n the mid 1970s, a depletion of the
beneficial stratospheric ozone layer
was detected. Ozone in the
stratosphere acts as a shield from harmful
ultraviolet radiation from the sun. The
introduction of manmade chemicals
destroys ozone, the stratospheric ozone
layer becomes depleted, and
consequently increased ultraviolet
radiation penetrating the Earth's surface
can increase the incidences of skin cancer
and eye cataracts.
In addition, the increasing amount
of greenhouse gasses such as carbon
dioxide (CO2) released in the
atmosphere by human activities results
in increasing the average air
temperature. The climate's system is
extremely complex and variations in
our climatic patterns are influenced by
many natural factors other than the
greenhouse effect. Still, there is growing
evidence that human influence is
changing the climate of this planet,
and many leading scientists argue that
the warming experienced in the late
20th century is at least partially
anthropogenic in origin.
Besides these problems, air pollution
can directly cause negative effects on
our health and on our welfare affecting,
for example, forests, crops, animals and
national parks.
Global warming regulations
These are global issues, and actions
have been taken on a global level to
define remedies and to attempt to
prevent the advancement of the
problem. An international treaty, the
United Nations Framework Convention
on Climate Change was established in
1992 at a conference in Rio de Janeiro. In
1997, an amendment to the Convention,
the Kyoto Protocol, an international
agreement, was created in Kyoto, Japan.
The objective of the Convention and
36
Kyoto Protocol is to limit and stabilize
greenhouse gas emissions and to slow
the progress of global warming.
Regulations in US
With the increased air pollution in
cities and from large industrial
facilities, the governments of many
countries have recognized the
importance of air quality control. In
the US, the Environmental Protection
Agency (EPA) was established in 1970
as a result of the growing public
concern about the pollution of air,
water, and land. Air pollution in US is
regulated by the 1970 Clean Air Act
(CAA), a federal law covering the entire
country. The CAA was first passed in
1963 and overhauled with many major
new provisions in 1970, including the
establishment of National Ambient Air
Quality Standards (NAAQS), New
Source Performance Standards (NSPS),
and expansion of the scope of the law
to include mobile sources. Many laws
and regulations were added since then,
including the major amendments to
CAA in 1977 and 1990.
Under the Clean Air Act, the US
government, through the EPA, is
required to set National Ambient Air
Quality Standards for pollutants
considered harmful to public health
and the environment. It is also
responsible for ensuring that these air
quality standards are met, or attained
(in cooperation with state and local
authorities) through national standards
and strategies to control pollutant
emissions from automobiles, factories,
and other pollution sources. The EPA
sets limits on how much of a pollutant
can be present in the air anywhere in
the United States. The law allows
individual states to have stricter (but
never softer) pollution controls than
those set for the whole country. The
AmChamPerspective
standards for certain sensitive areas,
such as National Parks and Wilderness
Areas are even more stringent.
The EPA is mainly concerned with
emissions which are or could be harmful
to people. This set of principal air
pollutants are called "criteria pollutants"
and they include: carbon monoxide
(CO), lead (Pb), nitrogen dioxide (NO2),
ozone (O3), particulate matter (PM), and
sulfur dioxide (SO2). There are also a
large number of hazardous compounds
called "air toxics."
Air quality modeling
Computer modeling is often used as
an alternative to or in conjunction with
direct air pollution monitoring, Air
quality models are used to describe how
pollutants emitted from various types of
sources into the air are transported
downwind and to predict the ground
level concentrations of the pollutants.
The mathematical and numerical
techniques used in these models simulate
physical and chemical processes that
affect air pollutants as they disperse and
react in the atmosphere. There are several
layers of complexity in air quality
modeling - the complex nature of air
movement, the heating and cooling of
the air, chemical reactions for pollutants
such as ozone or acid rain, obstacles such
as hills and buildings that have to be
negotiated by the air.
These models are important to our
air quality management system because
they are widely used by agencies tasked
with controlling air pollution both to
identify source contributions to air
quality problems and to assist in the
design of effective strategies to reduce
harmful air pollutants.
The US EPA regulates how much a
source may pollute. Each polluter is
required to provide information about
the emission rate of the pollutants
released into the atmosphere and
source parameters including source
location, stack height, stack diameter,
exit temperature, and exit velocity.
These parameters characterize stacks or
"point sources" that are commonly
modeled. Area, volume and line sources
are modeled as well.
Beside the source parameters and
emissions, other important components
and inputs for air quality modeling
include terrain and land use data,
meteorological observations, and
outputs from numerical weather
prediction models. The necessary
meteorological conditions include wind
speed and direction, air temperature, the
amount of atmospheric turbulence, i.e.,
stability class, mixing height. The
meteorological model, created in
Belgrade and widely used for operational
weather forecasting around the world
including in the US, can be used as an
input to dispersion modeling.
Who performs modeling in US?
In the US, a great number of
companies deal with environmental
issues and air quality. One of the leading
companies in this area is TRC. TRC air
quality scientists are internationally
recognized experts in the area of air
AmChamPerspective
quality modeling and model
development. They have developed or
enhanced many widely-used air quality
and meteorological models. Several of
these models have been accepted by the
US EPA as "Guideline" models
recommended for regulatory use. This
position, at the leading edge of modeling
and scientific technology, enables TRC to
assist clients to find cost-effective
solutions to today's complex
environmental issues. TRC scientists have
pioneered complex modeling issues such
as: regional scale transport and
dispersion, photochemical modeling,
complex terrain effects, aerodynamic
effects of buildings and other structures,
toxic pollutant dispersion and deposition,
and the accidental release of dense gases.
The authorized bodies and
companies, such as TRC, following the
regulations and norms of the EPA, are
using air quality models to make air
quality assessments for inhabited areas,
national parks, and other areas of interest.
Estimates are made for the concentration
of the pollutants, wet and dry acid
deposition, and visibility degradation.
These are compared against the national
standards, and permits are obtained only
in case the model results show values
below the set limits. This type of analysis
ensures that the impact from a new
facility or change in the emissions of an
existing facility is limited in terms of
creating unhealthy air for breathing or
acidification through deposition of
sulfates and nitrates. In the visibility
analysis, the results of the modeling have
to show that visibility degradation in the
near field and especially in the National
Parks due to the source is limited.
Otherwise, the permit to operate a new
facility or to make modifications to the
existing one cannot be issued.
Situation in Serbia
In Serbia, there are known pollutant
sources, but there is no readily available
information on emissions and stack
parameters for all those sources. Under
current Serbian air quality regulations,
there are no specifics about the type of
models that should be used to estimate
the pollution level of the cities, forests,
and national parks. Modeling would be a
beneficial addition to the existing air
quality monitoring network in Serbia.
37
Business Interview
Marek Kalinowski of Duvanska Industrija Niš talks about
company’s environmental strategy
Obligations to the Future
”We have set up systems to address key EHS risks in our value chain and encourage
communication with employees, consumers, suppliers, vendors and the communities
in which we operate, bringing long term solutions to what we can directly control. ”
T
he tobacco industry is bound by very strict quality and
environmental standards for the manufacturing of its
products. Philip Morris International is committed on a
worldwide basis to reducing the current and future impact of
its activities and to enhancing the sustainability of the natural
resources upon which it depends. We have asked Marek
Kalinowski, Director of Operations at Duvanska Industrija Niš,
the manufacturing affiliate of Philip Morris International, to
answer some questions about the importance of the initiatives
undertaken by the EHS (Environment Health and Safety)
function in its operation in Serbia.
What is, in a nutshell, the objective of PMI when we
talk about the environment?
We very much care to edge our business with regard to the
environment. We have set up systems to address key EHS
risks in our value chain and encourage communication on
environmental issues with employees, consumers, suppliers,
vendors and the communities in which we operate, bringing
long term solutions to what we can directly control.
Can you explain what the environmental impact of
your manufacturing business is?
There are several areas of focus in a factory, among
which we can identify some that rank high in the priority
list. The first relates to the working environment and its
safety, the second refers to the direct consumption of
energy and water to operate the manufacturing process,
and the third relates to waste, as our industry disposes of
large quantities of wastes and wastewater spilling from the
production processes. Our primary aim is to achieve a zero
risk labor environment, to contain consumption, and to
properly manage any waste generated by our
manufacturing process.
How would you assess your performance in the
management of the above?
Our global practices in EHS have made enormous progress
in the course of the last 10 years as the Company has gained
knowledge and data on the most effective solutions applicable
to its business. We have started regular monitoring of
performance indicators driving effectiveness and have started
internal awareness campaigns on the importance of individual
engagement for better management of all resources.
Does it mean that dealing with the environment has
therefore become part of the business strategy of your
company?
Yes, we have made the environment part of our global
operations strategy. We know that an effective environmental
management is very convenient to minimize the fixed costs
and make our business sustainable in the long run. We have
achieved good results in reducing the Lost Time Injury Rate in
our factories mainly due to preemption and training, we have
achieved significant energy savings, we have improved the
recycling rate and in some factories we have also achieved
external certification. Although we have a lot do, our
operations are moving fast towards creating an EHS culture
through behavioral programs. As far as Serbia is concerned, we
operate under the Law on the Protection of the Environment,
introduced in January 2005, and already aligned with the EU
best regulations. This Law sets the compliance thresholds very
high, and these standards are not easy to match for many
domestic companies. To achieve responsible progress in the
environmental arena, however, we expect the state authorities
to praise the best in class, to seek for consistent enforcement
throughout the supply chain of any industry and to apply the
same approach to all legal entities operating in Serbia.
Do you have any example of initiatives undertaken
since the acquisition of DIN?
Yes, we have many. For example, if we look at energy
consumption, our cigarette production process as well as the
heating of the facility in Niš is supplied by heavy oil. Within
the scope of the investment plan undertaken by Philip Morris
International after the acquisition, one of the key objectives
of the EHS department was to develop a plan to decrease the
38
AmChamPerspective
Marek Kalinowski, Duvanska Industrija Nis
Facilities of Duvanska Industrija Niš
consumption of heavy oil through energy efficient
equipment and conversion to usage of natural gas. The large
investment plan in the manufacturing facility has also
allowed us to specifically focus on energy savings within the
premises while significantly improving the work environment
for all the employees. We know that the conversion to gas
usage will decrease the CO2 emissions by one third in the
next year. The emissions generated in the production process
are also significantly reduced through the newest air-cleaning
equipment. The permanent measurements provided by the
authorized institute shows that all our values are already far
below the prescribed limits.
In parallel, we have invested in energy saving education
programs for employees, brought expertise from other affiliates,
sent people abroad for trainings and also provided in-house
trainings in order to develop expertise for future projects.
We also started water saving initiative in our facility in
Niš. Some of the activities are related to the replacement of
the water supplying infrastructures, to recirculation of water,
and to the installation of water measurement devices to better
control water usage.
Last, but not least, we have worked to improve on waste
management, starting from the segregation of waste and the
increase of the recycling rate. The process is currently
supported by a group of people working on the preparation of
a new waste management concept for the factory based on
those two principles and we expect to be operational as of
January 2007.
It seems there is quite a lot happening at DIN. Isn't it
loading up costs in your income statement?
Philip Morris is aware of its obligations to future
generations, and we recognize that excellence in
environmental practices and systems is essential to our long
term success. This is why, since the acquisition of Duvanska
Industrija Niš in 2003, Philip Morris has established very good
business cooperation with key stakeholders in the
environmental protection such as the Institute for
Environmental Issues and Work Conditions in Niš, the Agency
for Recycling, the Institute for Health Protection and has also
established cooperation with the AmCham Environmental
Committee and with the Board for Business Cooperation and
Sustainable Development established at the Serbian Chamber
of Commerce. The environment is certainly an ongoing
objective for Philip Morris International and sharing our
experiences and good practices with other industries and the
main stakeholders in the regulatory arena remains a mandatory
step to address sustainable and wise industrial practices.
AmChamPerspective
39
Interview
The Clean Up Begins Now
”Serbia does not have a packaging and packaging waste law.
We need to adopt these as soon as possible, as well as the regulations
on the hazardous waste”.
M
„ ”Serbia certainly
needs a factory for
burning hazardous
waste but this is a
huge investment
and therefore a
cost-benefit
analysis should be
made.”
40
any investors and business people
from the country and abroad are
surprised that Serbia has quite
regulated legislation in the field of recycling
which enables it to function. Waste
management, collection, and storage have been
functioning quite well in the last two years.
However, we need a packaging and packaging
waste law. That part of legislation has not been
put in order yet, Gordana Perović, director of
the Recycling Agency, points out in interview
for AmCham Perspective.
On a scale from one to five, she gives three
to the authorities in Serbia for its efforts and
activities in the field of environmental
protection and waste management. Grade three
is good because, in the words of Perović, there
are reasons for satisfaction: three years ago
only 3% of total secondary materials were used
in Serbia, whereas recent research and
calculations show that the percentage has
increased to 8 or 9%. That is more than twice as
much, although the legislation has not been
completed yet, and there is a lack of sufficient
coordination between institutions that are
concerned with the waste management.
Serbia has had a good Recycling Law since
1996, which was drafted on the bases of the
German model. Furthermore, in 2001, the
authorities had also adopted the Directive on
the collection, storage, and transport of
secondary materials. The Directive prescribes
rules and procedures on the transportation and
the takeover process of the recyclables.
According to this document, each law-abiding
entity submits data to the Recycling Agency
which issues a certification on the waste
category, that is, only if and where it has value
in use. Using its database, the Recycling Agency
is able to put in touch the waste generators and
the users of the secondary material. The agency
brings the two sides together and provide data.
”We have established and stabilized this
mechanism in the past two years. Three years
ago 7 to 8 % of the existing economic agents
from our database abided the legislation and
cooperated with the Recycling Agency. In the
past two years, the percentage has increased
significantly. Today, 42% of the Serbian
economy cooperates with us. This specifically
means that the Recycling Agency made a
contact with a factory, provided the
instructions on what to do with the waste, and
that we were able to put the data that the data
is on our website.”
Do foreign investors have objections to
the manner in which waste is managed in
Serbia?
Foreign investors who come to Serbia want
to abide to the regulations. The Recycling
Agency has excellent cooperation with all of
such companies. For example, U.S. Steel Serbia,
the company which, due to the nature of its
industry, has the most issues with waste, has
never had any objections. I would also point
out that the managers of the Ball Packaging
Europe got in touch with us even before the
building of the factory started. They started
with aluminum can recycling, and we did a few
educational projects on a secondary materials
collection. They saw that the system would
function properly, but that much education
and awareness were needed. Now they have
formed a foundation that is engaged in both
educating and collection.
Where do you see issues in terms of
recycling? The savings are great, and the
whole society benefits.
Serbia does not have a packaging and
packaging waste law. We need it as soon as
possible, because it would regulate the field
much better. The creator of waste must take
care of it. Right now, using the current
procedure of collecting secondary materials, 20
to 30% of used cans can be collected. If there
were a law, each factory producing the
packaging that becomes waste would be obliged
to pay some level of tax, but it would have
benefit in return. Thus, it is our permanent goal
to collect as much packaging waste as possible,
but there must be a law to regulate this area. It
is not only about cans, but also the PET
containers, that is, plastic bottles. Without a
law, only the Agency recognizes that this is a
AmChamPerspective
Gordana Perovic, Director of the Recycling Agency
Round table with the AmCham Environmental Committee
new economic activity. A
sufficient indicator is that
after our seminar and
activities, in the past two
years, eight small enterprises
dealing in waste recycling
have been established.
Are there any
possibilities to open the
recycling factories in Serbia?
There are foreign investors
interested in opening waste
recycling factories in Serbia.
Our site has been visited many
times (out of all visits 42% are
from the country and 52%
from abroad). We first need to
screen the whole situation.
That is why it is necessary to
finish the job of creating a
database, and that has to be
done by professional services. If
it is left up to administration,
we are not likely to finish that task.
What happens with hazardous waste?
Many believe that hazardous waste has no
usable value. This is not the case. There is a
value to use in hazardous waste. An example of
hazardous waste is a battery thrown into the
river. It is hazardous because it contains sulfuric
acid. However, at the same time, a battery is an
extraordinary secondary material because it
consists of lead, antimony, and other reusable
materials. Current practice in Serbia is for large
companies, and smaller ones as well, to do a
categorization of waste, receive a certification
from us that it is a hazardous waste and that it
does not have value in use, and subsequently it
is to be destroyed. Everywhere in the world
hazardous waste is burnt, but we do not have a
hazardous waste-burning facility yet. That is a
special facility for filtering burnt hazardous
waste. But what is deposited during burning
down must be removed from them as well, no
matter how small the quantity is.
How is hazardous waste stored and what
are permanent solutions for that kind of
waste?
For the time being, the waste is stored in a
controlled facilities and a part of the most
hazardous waste is exported. Two firms in
Serbia have permission to export hazardous
waste, but now the export price is quite low.
Serbia certainly needs a factory for burning
hazardous waste but this is a huge investment
and therefore a cost-benefit analysis should be
made: to build a hazardous waste burning
facility or to export. But, in order to know
that, we must survey the situation in each
municipality and see how much of each kind
of waste we have. For there will be problems
with the location for such a factory as well.
People object since they are convinced that it
would cause pollution. Therefore, if you want
to do something in this field, you have to
inform the public at the very beginning and in
a language people can understand without
obscure technical terms and names most
people do not know, and do not have to
know.
Can financial resources for this area be
obtained from international institutions?
Yes, resources can be obtained. Both the
World Bank and the EU subsidize this area, and
we have to make effort to get the resources. In
Serbia, according to our database, there are 298
registered companies dealing in secondary
materials, and the majority is in Belgrade. Most
of them are concerned with waste metal
recycling, followed by PET containers, textiles,
and paper. It is also significant that a firm from
Slovenia has opened a factory in Vrdnik and is
concerned with recycling waste arising from
electrical and electronic equipment, which is
important because of computer waste recycling.
Work on environmental protection must
continue, but first of all, cooperation between
institutions must be established and projects for
applying with international organizations and
institutions must be made.
AmChamPerspective
„ ”In Serbia,
according to our
database, there
are 298 registered
companies dealing
in secondary
materials, and
the majority is in
Belgrade. Most
of them are
concerned with
waste metal
recycling.”
41
Featured Member
Showroom
Beograd, Svetozara Markovica 8
concept of modern life
UNIGROUP d.o.o. became exclusive representative of Danish company Bang&Olufsen, in April
2005. Cooperation with this renowned manufacturer of unique audio and video products is a big
challenge, since products themselves are far beyond any other similar products at the market.
Their quality and design exceed your usual expectations from audio and video solutions.
We wish to bring real Scandinavian experience to all our clients. Our shop will provide
enjoyment and relaxed atmosphere during your visit. There is an opportunity to enter the world
of Bang & Olufsen range of products, performing top quality picture and sound, in perfect
combination with unique design. Every detail has been carefully chosen, aiming to make your
visit an unforgettable experience.
In serving our clients in the best possible way, we have also found an excellent partner in
company Concept Off. Experienced and renowned team of architects and designers provides
the 'concept of modern life style'. Concept Off is the synonym for new manufacturing
programmes that are in line with the latest world trends. They create interior out of
sophisticated furniture and materials, making the interaction between man and space obvious.
In other words, you can always find something that will suit your sensibility and interior style,
including Bang&Olufsen products.
We shall meet your needs and needs of your family for comfort and entertainment, while
inspirations will be found in you…
42
AmChamPerspective
AmCham Forum
Investment in the Future
AmCham Forum looks at the question of the environment from the
perspective of the industries. How does Serbia measure up in awareness
of environmental protection? How well does the industry toe the line?
In yet another vital reform area, AmCham member companies turn their
attention to the state of environmental regulation and control in Serbia.
T
raditionally, private sector's concern for the welfare of
the environment reached only as far as it had to
comply with the government regulations. However,
times have brought on drastic changes in this respect. Studies
show and companies understand, that their long-term success
is in direct correlation with the well being of the
environment. Resources are finite and the preservation of the
eco systems, which industries use and function in, is essential
for their continuous work and growth. As a consequence,
what was once mainly a concern of the NGO sector is now a
major goal of the private one. Some companies have taken
the lead and are putting forth significant investments and
efforts to preserve our natural resources. Having the benefit of
grasping this concept a few years earlier, leading companies
have already developed high company standards regarding
environmental protection. And as multinational company
standards must be complied with even if they are more
demanding then local laws, foreign companies often find
themselves as good example setters, sometimes going beyond
what is expected from them on the local government level.
Environmental initiatives are sometimes not even
restricted to the industry operations, but are promoted
among the employees and local communities. Private sector
volunteers its knowledge and expertise, as well as local
presence and global reach to stimulate public awareness and
head environmental projects often carried out with a network
of partners from the public and NGO sectors.
Do you find the environmental protection
to be adequately regulated in Serbia?
Tony Barnett, Ball Packaging Europe: The regulatory
framework that governs the environment is no less important
than any other area which the Serbian government should be
scrutinizing. This question, however, cannot be answered
with a simple yes or no. We are committed as a company to
the keeping the highest standards in environmental
protection and recycling of natural resources, and it our hope
that the government will pass and implement policies that
show an equally high commitment.
There are regulations in place for protecting the
environment, and this is a sign of awareness which we
acknowledge and appreciate. As an industry leader, however,
it is our role to provide the government with sufficient input
to demonstrate the importance of efficient laws and
regulations which will benefit all parties - the state, the
ecology, and the consumers as well. Where inefficiencies
exist, at least one of these three will suffer.
Jasminka Milošević
44
Jasminka Milošević, FIDECO: As an environmental
consulting company, we face certain limitations when
advising our clients: environmental legislation in Serbia has
been developing rapidly over the last three years, but it is not
followed with adequate operationalization - institutions,
implementing bodies, by-laws and regulations. The process of
AmChamPerspective
devolution is still in progress, and in some cases there is still
no clear delineation between mandates of the local and of the
national authority. At the same time, permitting bodies, as
one level of implementing authority, are still struggling with
certain clarifications of the regulations and procedures.
Strong capacity building process is under way in Serbia at all
levels, and lately it involves not only local and national
authorities, but also industry, as a relevant stakeholder in the
process.
Snežana Petrović,LaFarge: Not yet, but there are some
changes lately. For example, we have very old regulations
regarding emission limits where it is not clear enough how to
implement those limits on different technology.
However, high standards and constant improvements in
the field of environmental protection are part of Lafarge
worldwide commitment. Therefore, the first large investment
started in 2002 was a bag filter of the latest generation. This
type of filter guarantees an emission of hard particles less
than 20mg/Nm3, which is far below the level required by
Serbian regulations. In the coming years, Lafarge BFC will
continue to invest to improve the environmental conditions
around the plant and that is the reason why the biggest part
of the budget for 2006 is dedicated to environmental
protection.
Would you agree that foreign investors are most often
paying the price for generally poor compliance?
Tony Barnett, Ball Packaging Europe: We are in the
fortunate position that we were able to undertake a greenfield
investment. In doing so, we naturally complied with the
governing laws. Our corporate policy is, however, to comply
technically and environmentally with international
standards. That certainly required greater capital investment
initially. As a result, we consider however that we are well
prepared for the future.
Jasminka Milošević, FIDECO: Since we are monitoring
environmental compliance of some large investors in Serbia,
it is obvious that they are exposed more then some other
local industries. It also extends to local industries (large or
small) which are trying to be competitive on EU market or
want to implement "green policy", and therefore turn to
administration seeking for assistance or permits. Immediately
they come to more frequent attention of either inspectorate
or other bodies in state or local administration. We do not see
it as a problem per se, but as a problem of effective
implementation of laws at all levels. In other words,
possibility of being non-compliant with environmental
legislation (and majority of medium and small industries are
not compliant) creates various environmental problems,
which, even when obvious, do not initiate reaction from the
relevant institutions. On the other hand, environmental
infrastructure is virtually non-existing (which also relates to
the previous question) in which case full compliance is truly
impossible.
Snežana Petrović,LaFarge: Yes. They have to pay in very
short term what was not paid many years ago. They have not
same treatment compare with not yet private company. We
regard environmental protection as a crucial business
Anthony Barnett
objective - a matter of business ethics. Environmental
compliance is our main and highest business priority, like
safety at work.
What can be done to increase spontaneous
awareness of the threats posed by ignoring
environment laws?
Jasminka Milošević, FIDECO: Number of awareness
campaigns has been conducted in Serbia targeting various
groups at different levels - local, regional, national, decision
makers, general public, and children. At some point, a
national campaign was developed, but never fully
implemented. Some of those campaigns were either
financed or supported by the national government and
implemented by local or international organizations, the
rest of them were initiatives of international donors. Foreign
investors and industry have their share in these activities limited to local community or wider at the national level,
often in cooperation with governmental institutions. In our
opinion, this is a firm confirmation that there is strong will
to boost awareness at all levels to increase compliance.
Unfortunately, in some cases, even authorities are not
compliant with the legislation they developed and adopted,
which gives conflicting messages to industry and to the
general public.
Snežana Petrović,LaFarge: Partly yes but without
exception. In parallel education must be more present in
our media. People should be aware that environmental
AmChamPerspective
45
AmCham Forum
protection is very important, though neglected issue among
many companies. But we are aware of the fact that that
demands time and constant communication regarding this
topic.
Are there practices in force within your business which
go further to support environmental protection?
Tony Barnett, Ball Packaging Europe: It is BPE's strategy
to actively promote the collection and recycling of our
beverage cans. For instance, we are currently involved in
setting up an efficient collection system for packaging of all
types here in Serbia. We have therefore become a member of
the packaging organization SEKOPAK and are contributing
our international expertise.
In addition to this, we have established the recan Fund
for Recovery and Recycling. The objective of this
organization which has been operating since the beginning
of the year is to increase awareness, in particular of young
people, in respect of the recycling of beverage cans.
Together with schools, we have prepared the first programs
and materials on this topic and run the programs. We
launched similar activities ten years ago in Poland, also in
conjunction with setting up a production plant. This
contributed to the fact that even prior to Polish legislation
taking effect, more than 40% of the beverage cans sold were
collected again.
Furthermore, in recan d.o.o. we have an operative entity
which professionally organizes the collection and recycling in
co-operation with partners from the recycling industry and
also local authorities.
We believe that the government should benefit from this
experience and promote the commitment of the general
public and the creativity of companies through incentives
instead of resorting to legislation which burdens and
immobilises industry. We would count the imposition of a
mandatory deposit on one-way beverage containers as such
legislation.
46
Jasminka Milošević, FIDECO: In
environmental consulting, we mainly
deal with EU funded projects or
projects financed by the World Bank,
EBRD, KfW, USAID, etc. In most of
cases we follow defined procedures
elaborated by these organizations.
There were situations when there
were attempts to apply this
experience in projects financed
through governmental institutions,
especially in the case when there was
no pre-established national procedure
or methodology. The problem
remains the same as in most of cases lack of capacities in resources of
relevant authorities in number of
personnel or know-how capabilities.
Snežana Petrović,LaFarge: Yes,
we have our approach and our
procedures and I think that we can
offer a lot to the government bodies and help them to build
collective conscience among people together. Participation in
government working group for new regulations will be the
best way in best practices transfer. In addition to that one of
Lafarge BFC main principles is to share the knowledge and
experience gathered from 76 countries all over the world. We
are always open for cooperation.
How do you justify the hit to your bottom
line which may result from employing
environmentally friendly practices?
Any short term benefits?
Tony Barnett, Ball Packaging Europe: Our
environmental campaigns are not designed for short-term
success. We know that it takes time to cultivate awareness.
We are convinced of success in the medium term and long
term. We are surprised by the rapid accommodating approval
for the recan activities from the local authorities,
environment authorities and the public at large. That
encourages us to continue.
The reason is not least because these product-related
measures are completely in line with the Serbian environment
policy which requires commitment from industry.
Jasminka Milošević, FIDECO: At this point it is difficult to
discuss short-term benefits, where only long-term benefits are
obvious - viability of the process in the long run. It is difficult to
build social and environmental aspects in linkage to economic
in the environment where there is no clear and defined
objective in both of these sectors, which is the basic prerogative
for sustainability. Actually, even cooperation between respective
governmental sectors is missing at this point. Nevertheless, this
situation should not serve as an excuse to leading industries in
Serbia. Setting high standards in this field in Serbia may seem as
a futile at this point, but it can also serve as a starting point to
build pressure on the government to introduce benefits for
environmentally friendly practices.
AmChamPerspective
Snežana Petrović,LaFarge: Not too much short term, but
long term yes.
Is your company able to recycle waste
materials or dispose of them safely? Are
your efforts supported by the government?
Tony Barnett, Ball Packaging Europe: As a beverage can
producer, we cannot recycle material here in Serbia. By setting
up recan d.o.o., we have, however, created an organization
which encourages and carries out efficient collection, but
which above all returns the collected beverage cans to the cycle
enabling used beverage cans to be turned into new beverage
cans - time and again without any deterioration in quality. In
that way we save valuable resources and energy.
Jasminka Milošević, FIDECO: Since our company is often
employed to elaborate problems our clients have with different
types of waste, we are facing inadequate infrastructure for safe
disposal of some types of waste. Most of solutions are of a
temporary nature, some are incompliant, but accepted by
authorities in the lack of better solutions. There is different
situation in cases when recycler has large capacities for recycling
when some elements of the waste can be categorized as a
hazardous waste. In such cases state as a rule does not issue
permits for import of waste materials, without investigating
specifics of each case (the law itself is poorly defined in this case;
recycler often has solution to transfer hazardous waste into inert
matter; there is always possibility to register new company
which can avoid using terms which can implicate waste in the
registration paper, etc). These are short-term solutions and
inadequate approach to problem solving, it will not bring us far neither industry nor the environment itself. Industry and
companies working in the field of environment need to
investigate all possible ways of making partnership to all relevant
stakeholders, government above all. This is, in fact, one of the
missions of AmCham and its environmental board, as we see it.
Snežana Petrović,LaFarge: Serbian government gives
great effort to support foreign investments in the country by
modulating domestic regulation with those of European
Union, using good experience and by that providing easier
work for all. At the moment, we are not using alternative
fuels as energy resource in Lafarge BFC, although It is well
known that cement kiln with preheated is the best
incineration equipment, used by the most of Lafarge Group's
factories. The reason for choosing this mode is that it
minimizes exploration of non-renewable natural resources
and increase environmental protection.
AmChamPerspective
47
Public Relations Perspective
Weber Shandwick signed
agreement with McCann PR
In Top
League
Borislav Miljanović MA
Managing Director
McCann Erickson Public Relations
W
hen we established
McCann-Erickson Public
Relations four years ago, our
vision was to develop a PR agency that
would operate in compliance with
global communications standards. After
succesful negotiations with famour PR
networ we can proudly say that the
McCann Erickson Public Relations is
headline in some global media every
two hours. Bearing in mind that at least
two very successful Serbian business
groups are announcing membership at
the London Stock Exchange, this
opportunity is becoming ever more
significant.
The other good reason why WS has
come to Serbia also serves to convince
„ Any corporation can communicate its information from Serbia to
the media in Britain, Germany or USA within 24 hours.
now an official affiliate partner of
Weber Shandwick in Serbia and
Montenegro.
What does it mean for us and
business in Serbia? Firstly, and perhaps
most importantly, serious Serbian
companies are provided with a
communication route to an access to
global media. Through our offices in
Belgrade and Podgorica, any domestic
corporation can communicate its
information to the media in Britain,
Germany or the USA, within 24 hours.
Our account managers are in daily
contact with their colleagues in offices
in over 120 countries in the world, via
Weber Shandwick European hub in
London. No one in Serbia can now say
that global media are not accessible,
since there is a simple way to
disseminate their information in
different parts of the world. Statistical
data show that WS has one major
48
other multinationals that they can get
standardized PR service in Serbia that
is nearly the same as in New York,
Paris or Tokyo. And that represents a
step forward for Serbia towards global
business. It is definitely easier now for
multinationals when they know they
can get a recommendation in London
or New York for a team in Serbia that
can take care of their image in the
same manner as anywhere else in the
world. The agreement inked with
Weber Shandwick verifies that we are
not lagging behind global
communications standards to a great
extent.
The third major benefit from
partnership with the largest PR network
is - the know-how. We have made use
of all domestic education and training
resources so far. Licensed by the
London School of Public Relations, we
have been conducting successfully their
AmChamPerspective
education training courses for several
years.
We now have an opportunity to
exchange current, daily information
related to account management,
strategy design and evaluation of
communications campaigns. It means
that at any moment we can access
databases of all campaigns WS is
conducting anywhere in the world and
update our knowledge in specific
business categories. McCann staff now
attends trainings nearly every month
and exchange experience with
colleagues from all around the world in
various PR areas.
Since McCann Erickson Public
Relations is a PR sector leader in this
area with over 70 employees in
Belgrade and a dozen in Podgorica, we
are certain that recent developments
have established new dimensions of
domestic PR industry. And we are not
alone, since other PR agencies have
advanced as well. There were only two
such agencies five years ago, while now
more that 40 agencies are registered as
specialized in public relations. In our
regular contact with colleagues in
Croatia and Slovenia, we notice that we
have almost leveled with them in all
aspects of work, despite their initial tenyear advantage. In any case, I think
that PR in Serbia is well-rooted and
growing unexpectedly quickly.
Hopefully, it will continue in that
direction.
Investment Perspective
JT International Acquires Senta Factory
Economic Wedding
M
ay 9, 2006 was a day of
celebration and ceremony in
northern Vojvodina. It marked the
acquisition by JT International, a unit of
Japan Tobacco Inc., the world's thirdlargest tobacco company, of the historic
main tobacco processing facility in
Serbia, DI Senta. This moment in time
also marked the beginning of JT
International's engagement in Serbia as
a direct investor.
The celebration was a big one more than 1200 employees, farmers
and local residents were on hand to
welcome JTI. In his speech, JTI's Chief
Operating Officer, Tom McCoy, likened
the celebration to a wedding - "not one
of two young lovers but of two mature
businesses. Today we plant the seed for
the future and we will work as partners
to harvest the results of this union."
The acquisition of Senta by JT
International was the result of over two
years of preparations and negotiations
between the company and the Serbian
government.
As in all successful negotiations,
everyone became a winner. The
Serbian government, led by Finance
Minister Mlađan Dinkić and supported
by Minister of Economy Predrag Bubalo
and Minister of International Economic
Relations Milan Parivodić, as well as
others in the government, gained its
first Japanese investor and a significant
gain in revenue.
For the employees of Senta and the
people in the region, a new partner has
arrived. This partner has committed to
transforming Senta into a state of the art
facility that will create many new jobs
and secure indirect employment for over
1000 farmers and seasonal workers.
JT International and its parent
company Japan Tobacco gained its 15th
cigarette manufacturing facility
worldwide. It anchors JTI's operations
in South Eastern Europe, and will
strengthen the company's ability to
compete for customer loyalty. Last but
not least, the acquisition will benefit
the consumer. JT International's
brands, including Camel, Winston,
and Monte Carlo, have long enjoyed
popularity in Serbia and the region.
JT's ability to make these and other
brands immediately available to
consumers at competitive prices has
been dramatically enhanced.
JTI considers that this partnership
opens a new chapter in relations
between Serbia and Japan. JTI is certain
that it will assist Serbia in enhancing its
international image and in attracting
other Japanese and foreign investors to
Serbia.
Top management of JTI International with the Minister of Finance Mlađan Dinkić
AmChamPerspective
49
AmCham News
New Executive Director
S
tarting this July, Bojana Vukašinović has taken the lead
of the Executive Office as AmCham's new Executive
Director. She steps into this position with a solid
professional background. Working as a project management
specialist with USAID Mission in Serbia and Montenegro for
over five years, she has experience in advising the Serbian
government, state agencies, and the mission on issues
relating to enterprise and bank restructuring, privatization,
and public finance.
In the course of her work she helped determine the real
value of several commercial banks in Serbia on the basis of
examination of credit portfolios, asset and liabilities
management policies, liquidity and funds management,
information technology systems, and interviews with the
management. In addition, she is fully versed in all relevant
US Government procurement policies and protocols, the
set of skills, which enabled her to take charge of complex
portfolio of economic reform projects.
Bojana earned her Bachelor Degree in Economics at the
University of Texas at Austin in 1999. In addition to
Serbian, she has a fluent command of English and French.
50
"In my new position, I intend to leverage my knowledge,
experience and good relationships within the Serbian
Government and US Embassy, to strengthen AmCham's
business advocacy function, improve interaction with
member companies and facilitate better communications
and outreach, thereby positioning AmCham as a leading
business association in Serbia," says new AmCham Executive
Director.
AmChamPerspective
Extraordinary General Assembly held in July
AmCham Serbia - Leading the Change
A
mCham Extraordinary Assembly
Meeting, held on July 13, was kicked
off by the AmCham President Eugenio
Sidoli presenting a report on the Board's
activities. Focusing the report on the
main strategic areas - Supporting Change,
Voice our Vision, Share Experiences and
Strengthen our Network - he covered the
progress in each area and introduced
members to the next steps that will be
undertaken to achieve the goals set by
the membership. He then proceeded by
formally introducing new Executive
Director Bojana Vukašinović.
Patricia Gannon, Secretary Treasurer,
presented a set of amendments to the
constitution to be voted on. Firstly, the
dissolution of two republics called for a
name-change of the organization.
Unanimously members voted for the
name to change to The American
Chamber of Commerce in Serbia.
The second amendment proposed
dealt with the right to use a proxy voting.
Again, members voted unanimously,
deciding that in order for a company to
vote its representative must be present. In
this way, the option to vote, by proxy,
from a remote location, has been reneged.
Finally, the issue of membership
categories was brought up. Particular
articles in question were articles 12.1, 12.2,
12.3. Members decided they did not have
adequate information to make a decision
and should therefore vote at a later date.
The third section was reserved for a
thorough and frank discussion between
the Board and the membership,
exchanging experiences, expectations,
and suggestions on how AmCham can be
more beneficial to the companies it
represents.
AmChamPerspective
51
AmCham News
AmCham briefings with the Minister of International Economic Relations
Strategic Business Advisor
I
n the course of the last two months, a new and intensified
form of cooperation between AmCham and Ministry of the
International Economic Relations (MIER) has been realized in
the form of two meetings held between the AmCham Board
of Governors and Minister Milan Parivodić.
The group worked on identifying priorities, namely - IPR
enforcement, land ownership, urban reform and updates on
various regulatory processes for which the ministry is
responsible.
The Foreign Investments Law, however, has been a prime
topic of the conversation. The minister presented amendments
to the Law on Foreign Investments, which included the
introduction of municipal and national level "one-stop shops"
for investors, local and ministerial level education of
government working teams responsible for resolving investor's
problems, and the institutionalization of aftercare services.
The AmCham team welcomed MIER's steadfast efforts to
introduce a legal framework addressing investors and much
needed customer care even though the framework for
enforcement will be very challenging. AmCham President
52
Eugenio Sidoli explained that the Foreign Investment Law is
extremely important from an advocacy point of view. "Attracting
new investments is certainly extremely important to the country.
However, taking care of the existing ones is perhaps even
more important. That is why AmCham is highly motivated to
establish this sort of dialogue with relevant government
bodies." As a part of the new trend of close collaboration, the
minister, in cooperation with the Board, will establish a key
account approach with some of the leading companies within
the AmCham network.
The new relationship gives AmCham a more proactive
role as a strategic business partner and in due time these will
become fully action-oriented meetings, emphasized Sidoli. In
line with that, the AmCham Board and Parivodić established
a precise schedule of upcoming events and regular meetings
accompanied by a set of concrete deliverables.
The Media Department of Serbian Government has
commented on the collaboration calling the meeting calling
it"an event is of enormous importance for the development
of economic cooperation with foreign investors."
AmChamPerspective
Business Luncheon with Governor of the National Bank of Serbia Radovan Jelašić
Governor:"Hedge Yourselves"
F
orewarning of the upcoming
transitional changes that will
present difficulties for some, National
Bank of Serbia Governor Radovan
Jelašić, invited AmCham members to
approach him and "help by advising
the bank about the tools they need to
make things happen." In that context,
he announced a meeting that was to be
held on July 12 with the export
community, especially vulnerable to
the recently imposed changes.
The governor introduced the
membership to the bank's top three
goals in the upcoming period:
• Bringing down inflation without
using the exchange rate as the
main anchor
• Creating an efficient financial
system
• Concluding the internal
restructuring of the National Bank
itself
He continued his presentation by
addressing some of the recently
relevant issues.
The bank will not allow for "wild
fluctuations" of the exchange rate on a
daily basis, Governor Jelašić explained,
but it is moving towards a marketdetermined value for the dinar. He
advised businesses to "hedge
themselves." While conceding that the
bank and the Ministry of Finance are
institutions independent from one
another and do not support each others
visions at all times, he asserted that
there is however an appropriate
coordination between the two
institutions. The governor noted that
he was satisfied with the outcome of
the recent monetary measures, as they
have given lower inflation rates and
less explosive loan growth. Although
the bank possesses the tools to
completely rein in the two, the
governor does not think that the level
of management would be beneficial.
Following the presentation, much
time was left for a very dynamic
discussion covering a variety of issues
such as GDP growth, minimizing
paperwork of inter-company
transactions, relieving the NBS of some
of its responsibilities, handling export
problems, euroization of the local
economy, the government's
commitment to the dinar, etc. The
governor took time to answer all the
posed questions thoroughly and
thoughtfully.
Look for the E-News!
In a concise and readable
format, the AmCham E-News
delivers regular news and updates
on the AmCham activities, the
decisions made by the AmCham
Board of Governors, upcoming
events, work of the advocacy
committees and task forces. The
purpose of the AmCham E-news is to
keep everyone informed about the
our activities and advocacy work.
Available exclusively to the
AmCham members, AmCham ENews can be accessed through the
members-only section of AmCham’s
website www.amcham.yu. For more information on E-News please contact
Mirjana Stefanović (stefanovic@amcham.yu).
We welcome your comments and suggestions!
AmChamPerspective
53
AmCham News
Business luncheon with the
Montenegrin Deputy Prime Minister
The New Future
F
ollowing the referendum in Montenegro, Branimir
Gvozdenović, Deputy Prime Minister for Economic Policy
and Development in the government of Montenegro met the
AmCham membership at a luncheon held in end of May. He
held a positive approach regarding the changes in the political
landscape stating that "politics are behind us and now we focus
only on economics," He also asserted that "Montenegro still
recognizes Serbia as its most important economic partner," and
that Serbian businesses will retain the same benefits as their
Montenegrin counterparts.
In addition to reassuring the anxious business community,
Gvozdenović presented them with a comprehensive overview of
the economic state of Montenegro, including the reform
processes in various relevant sectors such as privatization,
banking, and taxes. For those interested, he detailed a number
of attractive investment opportunities, especially in the sector of
tourism development. As an important benefit of entering a
market such as Montenegro, Gvozdenović pointed out that due
to the country’s size, its government is approachable and
54
flexible in its cooperation with the private sector.
The Q&A session was used to look over any foreseeable
problems arising from the new developments and to touch
upon issues deemed of importance such as investment climate,
incentives for investors, and IPR protection and enforcement. In
light of the political changes, Mr. Gvozdenović invited
AmCham members to come to Montenegro. "We welcome you
both as friends and partners," he said encouraging AmCham
members to establish contact with the government.
Regarding the topic of IPR, he confirmed his government's
firm commitment to rein in this problem by the year 2007.
AmChamPerspective
AmCham launched new educational initiative
Meet the Business
A
s of recently, AmCham initiated a
new project, "Meeting Business
First Hand," designed to educate young
generations of perspective leaders by
giving them a chance to meet with and
learn directly from the top
management of the market's leading
companies about how to successfully
start and manage a business. A number
of member companies, such as CocaCola, Microsoft, and U.S. Steel,
expressed a desire to get involved in the
project but the one to kick off the series
was Ball Packaging.
The first group of students was
welcomed by Anthony Barnett, Ball
Packaging Plant Manager as well as
Eugenio Sidoli AmCham President on
June 8, at the Ball Packaging premises
in Zemun. Following the introductions,
managers of all key company
departments such as human resources,
finance and accounting, financial
control, sales and marketing presented
to the group a comprehensive overview
of each department's tasks,
responsibilities and daily operations.
As the largest greenfield investor in
the country, the company leadership
had much wisdom and experience to
share with the young participants.
Anthony Barnett especially
highlighted the importance of
choosing a good team. "The absolute
most important factor of an
investment is the people. Ball
Packaging has had a great experience
in that respect and has formed an
excellent team here in Serbia, proving
that high technology companies can
be as successful here as anywhere else
in the world."
Anthony Barnett
The students especially enjoyed
touring Ball Packaging's state-of-the-art
production line, functioning 24 hours
a day, 7 days a week, 365 days a year.
The visit was concluded with a long,
unofficial exchange between the
students on one side and Plan
Manager Barnett and Miloš Uzelac,
head of the HR department, on the
other.
AmCham's "Meet the Business First
Hand" project is coordinated with the
Junior Achievement network, a
worldwide organization that engages
in helping the young gain
entrepreneurial skills, learn about
start-ups and free market operations.
Over 8,000 students across Serbia
participated in their program, starting
up over 50 businesses, where they had
the chance to learn through personal
experience.
All companies interested in
participating in the new
AmCham initiative are kindly
asked to contact Executive
Communications
Coordinator
Mirjana Stefanović at
stefanovic@amcham.yu.
AmChamPerspective
55
AmCham News
Alice Zimet
AmCham hosted famous New York fundraiser Alice Zimet
"Art is a Business Tool"
"Giving to arts is good for business,"
asserted Alice Zimet, a seasoned New
York arts fundraiser and the host of this
month's Business Today Seminar.
Drawing from her extensive experience
working in both the corporate world
and the arts community, she shed some
light on various practical ways in which
two groups can engage in mutually
beneficial partnerships.
"Some businesses think of art
sponsorship as an expense, charity
work, and most often an impulse buy."
In the United States, however,
sponsorship is thought of as primarily
a business decision, a thoughtful
purchase and one resulting in
revenues, explained Zimet to the
audience, composed of both members
of the business and the art community.
The two sides each have significant
assets to offer, which can be effectively
exchanged, creating a win-win
situation for all. In the United States,
this practice is common and it has
been tested over the years. While
Business Today Seminar hosted by Senzal
companies can achieve a variety of
goals, such as penetrating new
geographic areas or new demographics,
gaining visibility and improving their
image, art communities often
participate in order to gain financial
support, expertise, and technology.
Zimet bolstered her message by giving
real life examples of very successful
collaborations. Her presentation was
also highly interactive, involving the
audience and helping them grasp the
concepts. She invited the two
communities in Serbia and
Montenegro to rid themselves of any
misconceptions, and to take advantage
of this untapped resource by
approaching each other.
Rade Rakočević
ABCs of the
Stock Market
"The Belgrade Stock Exchange was
established in 1874 and was a
reputable place of business until
World War II.", explained Senzal
Executive Director, Rade Rakočević as
he examined the workings of that
institution throughout its
past, present and
foreseeable future.
"Currently, only a few
thousand people in Serbia
trade at the Belgrade Sstock Exchange.
However new laws such as the Law on
the Investment Funds are expected to
attract more participants and boost
the volume of trade."
Hosting the June Business Today
Seminar, Rakočević, and his
colleagues from Senzal took the
opportunity to give a 101 course on
stock market operations, giving their
audience a comprehensive overview
of this institution. Those more
AmChamPerspective
familiar with the process had a
chance to hear more on issues such as
various types of security, regulations
of stock exchange activity, market
trends, upcoming laws affecting
trading and the opportunities they
will create. A valuable transfer of
experience and knowledge sparked a
dynamic discussion among the hosts
and the sizable audience, once again
proving the value of business today
seminars.
57
Committe Matters
New Law Strengthening the Protection of Intellectual Property Rights
Steps in the Right Direction
A
s a response to the passing of the new Law on Special
Authorities for Protection of Intellectual Property, the
AmCham IPR Committee organized a press conference at
the Media Centar on June 15 to commend the government
for taking decisive steps in the right direction.
Nebojša Momčilović, IPR committee chairman, together
with committee member Jovan Jekić, welcomed the new
legislation pointing out how it empowers the appropriate
authorities by giving them more concrete tools to combat
piracy.
The new law secures wider authority to an expanded circle
of institutions tasked with tackling piracy. The Ministry of
Finance is now included in the team and will become an
integral part of it. Market, financial, and other inspectors are
authorized to confiscate and destroy pirated goods as well to
temporarily close down businesses identified as engaged in
piracy. Penalties have been defined and can now lead up to
EUR 35,000 fines. In addition, offenders run the risk of civil
suits being brought against them, having to pay three times
the value of the software to its rightful owner, and of course
will have to buy a legal copy.
AmCham experts highlighted that if piracy in Serbia was
rooted out, some 30,000 jobs would be created in the film
industry while in the software industry every single percentage
point of decreased piracy would produce 1,200 jobs. The
national budget suffers a EUR 100 million loss each year due
to piracy in the software, music and film industries alone.
The new law, they said, is a clear sign that the
government of Serbia is ready to seriously engage in the
process of protecting intellectual property rights, therefore
securing a better and more stable economic system for
current and potential investors.
The conference was very well received and was reported
on by most major media.
Xerox solutions provides ultra-fast digital printing and copying, as well as fax, Internet / network faxing,
scanning and e-mail capability. Color-enabled models deliver fast, affordable business colour when you
need it.
Finally, you can do it all.
11030 Beograd, SCG
Radnička 5a
Tel:
+381 11 305 16 16
+381 11 305 16 25
Fax:
Servis: +381 11 305 16 26
www.xpro.co.yu
58
AmChamPerspective
Finance Committee Formed
A
cting on the AmCham Board of Governors' decision to
advocate the development of Serbia's financial sector, the
AmCham Finance Committee has been formed. A group of
member companies, namely: Banca Intesa, Hypo Alpe Adria Bank,
KPMG, Komercijalna Banka, M&V Investment, Raiffeisen Bank,
Senzal, and Tigar will actively engage in its work.
The committee's goals are to define relevant financial sector
requirements and communicate them to the representatives of
regulatory institutions. In addition, committee will establish open
lines of communication with all stakeholders in the financial
sector with a view to propose measures in the area of fiscal,
monetary, and other financial policies.
The committee will be chaired by AmCham Member of the
Board Vladimir Čupić (Hypo-Alpe Adria Bank) and co-chaired by
Dragijana Radonjić-Petrović (M&V Investment).
Vladimir Čupić
AmCham/OSAC Committee
Tax Committee
Voicing its View on
Draft Security Law
AmCham Position
Paper Presented
At a conference organized by the Serbian Chamber of
Commerce on June 27, OSAC presented its position on the
Private, Personal, and Property Security draft Law. The
Council believes that the new law must meet both EU and
international standards and that the organization responsible
for regulating industry, setting the criteria and issuing
security licenses should be the Serbian Ministry of the
Interior. No other organization or "board" should be
authorized with the prescribed powers, they explained. OSAC
representatives also pointed out that the current version of
the law does not appropriately address the issue of conflict of
interest.
The Law on Private, Personal, and Property Security
represents an important step in regulating an industry that
employs over 30,000 workers and consists of 3,200 companies
across Serbia. For this reasons, OSAC adamantly advocates
transparency in the process of drafting the law.
After last year’s succesful advocacy efforts that resulted
in the adoption of series of amendments proposed by the
AmCham on the VAT law, the AmCham Tax Committee
prepared a new set of suggestions to the Serbian
Government.
On May 31, 2006, the committee delivered a position
paper to the Serbian Ministry of Finance, right before a
Serbian Parliament session.
The paper included specific recommendations in the areas
of expatriate taxation, foreign sources income taxation,
double taxation treaties, VAT and personal income tax. The
document is presented in its final form in order to allow
parliament representatives to look over the proposed
amendments and accept them in the original format.
DHL Chairing OSAC
On May 31, 2006, the AmCham/Overseas Security
Advisory Council (OSAC) elected its new Steering Committee.
Over the following twelve months, OSAC will be led by
Miroslav Trikić of DHL in the position of the Committee
Chairman, Milan Protić of 3M as Vice-Chairman and Frank
Steele-Mortimer as the Committee Treasurer. Newly elected
untitled members of the Steering Committee are Kent Brown
of JTI and David Maxwell from US Steel.
If you are interested in advertising in the AmCham Perspective, please
contact Branislav Valent, Sales Representative, and reserve your space
in the upcoming issue.
Tel. (+381 11) 324 77 20
E-mail: valent@amcham.yu
AmChamPerspective
59
Member Benefit Program
Member To Member
A.D. Telefonija - Leading System Integrator for
Telecommunication & Information Technology offers to all
AmCham members 5% discount to all our products and
services. Also we are pleased to offer AmCham members
the discount of 15% over standard pricelist for the
following programs: - Avaya, Ericsson, Cisco, Plantronics
Telefonija
Tel: (381 11) 34 04 147
Adresa: Makenzijeva 57
BeotelNet is a service provider who has introduced the first
international internet link in Serbia. For business AmCham
members we are offering:
-10% discount to `ADSL Pro` packages,
-15% discount to `ADSL Pro +` packages,
-20% discount to `Webhosting` packages,
-20% discount to `Permanent connection` packages
For home AmCham members we are offering:
-30% discount to `flat ADSL
Home` packages
Beotel
Makenzijeva 56
Tel: (+381 11) 30 80 018
TeleGroup has a pleasure to present a special offer for
fellow AmCham members:
- Alvarion BreezeNet DS-11
2,200 Euro
- Ericsson GSM Gateway F250
330 Euro
- Ericsson analogue phones
from 27 Euro
- Zyxel SHDSL modems
130 Euro
- Headphones Plantronyx H61
100 Euro
- MD 110 Ericsson PBX
depending on configuration
- RAD modem SHDSL
465 Euro
- RAD modem VDSL
360 Euro
- RAD VMUX 110 E1
2,700 Euro
- RAD VMUX 110 4FXS
1,600 Euro
- RAD IPmux E1
760 Euro
Generally, 5% special discount is available for the AmCham
members on the regular basis.
Svetozara Miletića 9a, Belgrade
Tel: (+381 11) 30 81 981
Fax: (+381 11) 30 81 991
Public Opinion, Market and Media Research Company,
TNS Medium Gallup special offer for the AmCham members
includes the following services: Quantitative Ad-Hoc Research,
Monthly Omnibus Survey, and Qualitative Focus Groups.
We have the pleasure to offer 10%
discount to AmCham members.
Savski Trg 7, 11 000 Belgrade
Tel: +381 11 3613 230, 3613 220,
3613 582
E-mail: office@mediumindex.co.yu
Website: www.mediumindex.co.yu
The Hyatt Regency Belgrade offer to fellow members an
upgrade from regular guestroom to a suite. Please note that this
offer is subject to availability and valid for 2006.
Tel: (+ 381 11) 301 1234
Fax: (+ 381 11) 311 2330
E-mail: belgrade.regency@hyattintl.com
Website: www.belgrade.regency.hyatt.com
Executive Newsletter is proud to offer AmCham members a
monthly discount of 10% for 3 month, 6 month, and 12
month subscriptions.
E-mail: info@bizinfo.co.yu
Website: www.bizinfo.co.yu
Lufthansa has a total of 26 non-stop flights per week
from Belgrade to Germany, including daily morning flights
from Belgrade to Frankfurt, two flights to Munich, at noon
and in the afternoon, and five flights a week to Düsseldorf.
As of May 1, 2006, for all AmCham Card holders departing on
Lufthansa flights from Belgrade, we are offering an invitation
to the Business Lounge in Belgrade. We furthermore invite
AmCham Card holders traveling in Economy Class to use
our Business Class Check-in counters in Belgrade. Please
present your AmCham Card to our staff.
Contact: Đurđa Popović Bakrac
Terazije 3/7, Belgrade
Tel: (+381 11) 30 34 387
Fax: (+381 11) 32 25 009
E-mail: djurdja.bakrac@dlh.de
For all AmCham members, DHL International Belgrade offers a 10 % discount for all out-bound shipments (documents
or parcels) sent from DHL locations in Belgrade. The discount is
valid for all shipments paid in cash or from an account after the receipt of pro-forma invoice.
Contact: Jelena Totović
Omladinskih Brigada 86, Belgrade
Tel: (+ 381 11) 310 55 00
Website: www.dhl.co.yu
The “Grand Motors” Company, Ford cars and spare parts
exclusive importer and distributor for Serbia and Montenegro,
has the pleasure to inform you about our company's new
discounts. We would like to recommend the new Ford Focus,
which is the leader in new technologies, safety, design
dinamics, drive quality, and comfort and quality refinement,
confirmed by the Euro NCAP Rating: “The safest car in its class.”
We offer 3% discount to all AmCham members.
Grand Motors Shop
Tošin Bunar 224a, Belgrade
Tel: (+381 11) 67 01 88; 260 99 36
Website: www.ford.co.yu.
Afirma FCB Advertising Agency is a part of the International
chain of Foote Cone & Belding. We offer you ideas that both sell
today and build brand value over time. We hope to see you as a
member of the family in near future.
We are offering 10% discount to all AmCham members.
Gospodar Jevremova 35, Belgrade
Tel: (+ 381 11) 32 84 620
Fax: (+ 381 11) 26 22 645
E-mail: office@afirma.co.yu
Website: www.afirma.co.yu
Caterpillar and Teknox are committed to supplying you
with the electric power solutions you need to operate your
business at maximum efficiency. Caterpillar Electric Power
Systems - generator sets, automatic transfer switches (ATS),
AmChamPerspective
61
Member Benefit Program
uninterruptible power supply (UPS) and switchgears - are all
engineered to work together to offer you the convenience of
a single-source provider. Caterpillar generator sets have a
powerful reputation in a variety of electric power markets.
Time and time again, Cat clean diesel generator sets, from 7
to 16,200 kW, and gas-powered generator sets, from 9 to
6,000 kW, deliver consistent performance, durability, and
reliability day after day, in some of the world’s most grueling
conditions.
For the full range of our products Teknox will offer a
special price discount of 5% to all AmCham members.
ITM Group works as an exclusive partner of reputable and
affirmed world companies. Electronics: Aiwa, Samsung, Pioneer,
Marantz, Braun; Sport: Tommy Hilfiger, Fila, Rang; Fast moving
consumer goods: Gillette (Gillette, Oral B, Duracell), L’Oreal, SCA
(Zewa, Libresse, Libero, Tena), Saponia, Rauch, Erdal
We are offering 10% discount to all AmCham members.
ULTRA (Tommy Hilfiger, Fila, Rang, etc.)
Bulevar Kralja Aleksandra 44, Belgrade
Tel: (+381 11) 32 40 688; 32 31 247
ULTRA ELECTRONICS
27. marta 66, Belgrade
Tel: (+ 381 11) 3243 582
ULTRA ELECTRONICS
Shopping centre “VEROPOULOS”
III bulevar bb, Belgrade
Tel: (+ 381 11) 131 385
Tel: (+381 11) 31 85 818
Fax: (+381 11) 31 85 952
Based on the exclusive agreement with American Express, the
largest payment card brand in the world, Banca Intesa Beograd
started issuing American Express Green and Gold credit cards on
the home market from May 8, 2006.
For this occasion, we offer all AmCham members a special
offer of 50% lower annual membership fee for American
Express credit cards. Members can apply for a card in all Banca
Intesa Beograd branches in country and can achieve the special
offer fee by showing the AmCham membership card.
Contact: Mirjana Đurović
Knez Mihailova 30, Belgrade
Tel: (+381 11) 30 22 610
Customer service: (+381 11) 201 66 11
e-mail to djmira@bancaintesabeograd.com
Unigroup d.o.o. is a private holding company whose
members are active in different fields of business. In April
2006, we became exclusive importer of Bang & Olufsen audio and video products. This Danish producer is well known
for the highest quality and exceptional design of the distinctive range of home entertainment solutions. Integrated audio and video systems, lighting and other electrical installations, provide perfect enjoinment and comfort in our clients'
homes.
To all fellow AmCham members we offer 10% discount.
BANG & OLUFSEN Store
Maršala Birjuzova 56, Belgrade
Tel: (+381 11) 30 31 355
E-mail: ip.belgrade@beostores.com
Colliers International offers unparalleled insight into the local
real estate markets and provides its clients with a full range of real
estate services at the highest standards. Our portfolio of services
includes: Tenant Representation, Development Advisory and
Investment Services, Commercial and Residential Brokerage,
Market Research & Consultancy, as well as Valuation and Property
Management Services. Colliers prepares an annual in-depth
analysis of the Southeast European real estate market, which
condenses our research findings for Serbia & Montenegro, Bulgaria,
Greece and Romania.
We are pleased to offer AmCham members the discount of
EUR 125 on the recently published 2005 report.
Sport Café, part of the ITM Group, is situated in a very
center of Belgrade near Republic Square as a modern concept of restaurant with unique offer of international food
and beverages. You can enjoy watching the sport events
from around the globe and get the fastest information
from a high-class internet café. The organization of press
conferences, presentations, promotions and different kinds
of fashion-sport-music events from 30 up to 500 guests is a
daily occurrence in Sport Café. We are available to present
you VIP standards in catering services, with complete logistics in organizing private and business parties, birthday parties for kids, etc.
We are glad to offer to all fellow AmCham Members:
1) 30% discount room rental for press conferences, business parties, birthday parties etc.
2) 10% discount for outside catering services
3) 10% discount for marketing and advertising
4) 10% discount for restaurant services
For benefits 1-3, please contact
Nenad Nikolić,
Marketing Manager
Makedonska 4, Belgrade
Tel: (+381 11) 32 43 177; 32 41 327
(+381 63) 60 70 44
E-mail: info@sportcafe.co.yu
Website: www.sportcafe.co.yu
Neumann International is a Human Resources consulting
company that was set up in 1971 in Vienna, Austria, currently
with 24 offices in 17 European countries. Its main business
lines are: Executive Search ; Neumann Management Solution
- recruitment of junior and middle management ; and Executive Consulting - compensation consulting, management audit, management assessment. Neumann International gladly
offers a new product: ONLINE COMPENSATION DATABASE
(www.neumann-compensation.com).
To all AmCham members discount is 20%. For more information please contact Neumann International
Call Colliers for your copy today!
Tel: (+ 381 11) 266 38 63
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AmChamPerspective
Contact: Sanja Bošnjak
Kneza Sime Markovića 7, Belgrade
Tel: (+381 11) 18 25 88
(+381 63) 58 04 92
Fax: (+381 11) 18 67 63
E-mail: sanja.bosnjak@neumann-inter.com
Website: www.neumann-inter.com
Diners Club International offers all AmCham members an
opportunity to acquire Diners Club credit cards under special
terms.
1. How to become a member of DCI?
With a reference to this offer please contact:
Simona Rubežić
Customer service, DCI Belgrade
Tel: (+381 11) 308-16-26
2. How much does the membership cost?
Special promotion for AmCham members:
Membership fee: DIN 3.000
Without initiation fee - only for Am Cham members.
Membership fee will be billed on your first statement. It will be
delivered to the address from your account application forms. You
will then have the option of either paying your bill directly at
Diners Club International located at Njegoševa 72 or thorough the
bank. Deposit will be eliminated because of your AmCham
membership!!!
3. You can use your Diners card in over 200 countries and
10 million location worldwide. In Serbia and Montenegro at
over 9.000 locations.
4. How to pay for your foreign and
domestic DCI credit card charges? All
charges will be billed in CSD equivalent.
Your will pay your bill into a destignated
Diners Club International account which
be specified on your stetement.
Media Center is pleased to make this exclusive offer for AmCham
members: Full event organization, including: media invitations,
Audio/Video recording, translation, Web broadcasting, video conferencing,
Press clipping. Discount for the AmCham members 20% Note: Prices
range from EUR 250 - 730 depending on the event and its duration.
Audio/video and simultaneous translation equipment rental
including speakers, microphones, video beam, central processing unit,
mixers, mini DV Camera. Discount for the AmCham members 15%.
Note: Prices range from EUR 100 - 1000 depending on the event and
its duration as well as client’s requests.
Media consulting – public speech, dress code, preparation of the
press conference, etc. Discount for the AmCham
members 15%.
Milentija Popovića 9, Belgrade
Tel: (+381 11) 220 69 00
E-mail: stupar@mediacenter.org.yu
Website: www.mediacenter.org.yu
Non - Member To Member
Langouste Restaurant has been opened with the aim to foster,
maintain and promote the idea of Mediterranean hedonism, the original and relaxed lifestyle that requires a love and knowledgeable enjoyment of good company, ever better meals, and the best possible
wines.
To all AmCham members we offer 10%
discount on services.
Kosančićev Venac 29, Belgrade
Tel:(+381 11) 32 83 680
Website: www.langouste.net
Šaran Tavern is located on the very bank of the Danube. More than a century ago, fisherman Vićentije Vukotić opened this
tavern that rapidly became widely known for its fish soup. This
traditional recipe is still kept in this restaurant alone.
We offer a 10% discount to all AmCham Members on all
our services.
Kej Oslobođenja 53, Belgrade
Tel: (+381 11) 61 82 35
(+381 63) 31 68 03
E-mail: slashpro@sezampro.yu
Website: www.saran.co.yu
Budget Rent-a-Car has 3,200 locations in more than 120
countries, 800 airport locations, with a fleet of 268,000 vehicles all over the world. In Serbia and Montenegro, you can pick
up any one of our latest models of cars at the airports in Belgrade, Tivat, Podgorica, or at one of our offices at the Belgrade Hyatt Regency, Budva, or Herceg Novi. We can deliver the
car to you anywhere in the country, and we offer additional
services such as rentals with a chauffeur as well as the option
to pick up in one town and drop off in another.
To all AmCham members we offer: a day free for seven
days rentals and over, or one car group upgrade, subject to
vehicle availability.
Contact: Tel: (+381 11) 31 13 050
Fax: (+381 11) 31 15 214
E-mail: office@budget.co.yu
Website: www.budget.co.yu
Intergradnja Coop has been involved in civil engineering since
1987. In 1998, we broadened our activities and became the
exclusive distributor for Swarovski, Rosenthal, Villeroy&Boch,
WMF, Meissen, Wedgwood and Christofle companies. We have an
exclusive retail shop in the center of Belgrade where you can find
a wide variety of superbly designed tableware of exquisite quality
and decorative objects from the manufacturers above mentioned.
We offer AmCham members 10% discount on the unique,
handmade collection of Meissen producer as well as to limited
editions of other brands.
Contact: Jasminka Perić
Nušićeva 25, Belgrade
Tel: (+ 381 11) 32 20 086
E-mail: igc@eunet.yu
Hotel InterContinental Beograd invite you to stay at our
hotel, and use the opportunity to visit our Brasserie Restaurant
which offer a business lunch and Sunday family brunch,
tailored for busy business people; Rotisserie Restaurant, suitable
for exquisite dining experience of international “a la carte”
menu; and, Piano Bar, the best relaxation solution for casual
business meetings and friendly gatherings.
We offer to all AmCham members a 10% discount for
the Restaurant/Bar services. We will UPGRADE YOUR
STAY, as an AmCham member, from standard to Deluxe
accommodation, subject to availability.
Vladimira Popovića 10, Belgrade
Tel. (+381 11) 22 04 204
Fax.( + 381 11) 311 13 30, 311 14 02
E-mail: ihcbegha@eunet.yu
Website: www.ichbg.com
AmChamPerspective
63
Member Benefit Program
Wine Gallery VITIS is the oldest privately owned wine shop in Belgrade. Situated in the vicinity of Kalemegdan, we offer a wide variety
of champagnes, sparkling and other wines from Serbian vineyards,
Croatia, Slovenia and France. As of September this year, new Wine &
Champagne Bar located at the same address is available for wine connoisseurs, where wines can be tasted and enjoyed by the glass. All purchases of 12 or more bottles are delivered to your address.
We offer a 10% discount to all AmCham members.
Cincar Janka 1, Belgrade
Tel/Fax: (+381 11) 218 15 40
Tel: (+381 11) 262 32 44
E-mail: vinotekavitis@eunet.yu
Website: www.vino.co.yu
Loža Club has reopened after 10 years at the place that used to
be one of the cult places of Belgrade in the past. It is located in the
heart of Belgrade and offers specialties of the Serbian national cuisine and a vast range of beverages, cocktails, and quality vines. In
addition to the restaurant, it has a separate bar and cigar room.
AmCham Members may enjoy 10% discount on all food and beverages.
Contact: Sunčica Boras, Manager
Obilićev Venac 27, Belgrade
Tel: (+381 11) 26 28 685
(+381 63) 52 20 52
E-mail: m.boras@eunet.yu
Star Car DOO is a rent-a-car company situated in the Metropol
Hotel and its primary activity is renting the cars, but also transfers
of groups and individuals (including drivers) to various destinations
across the country and abroad.
All of the vehicles possess modern equipment - air conditioner, radio-cd-mp3 with the manual controls on the steering wheels, electric windows, air-bags, ABS, as well as snow tires, suitable
for the appropriate occasions. The innovation in the offer of the
vehicles is the capability of renting vans (capacity up to eight passengers) convenient for fast transfers and also for the traveling of
organized groups. The service of waiting for our clients at the airport, as well as the transfer from the office to the airport, is free of
charge.
To all AmCham Members we offer 15% discount on all of
our services.
Bulevar Kralja Aleksandra 69 (Hotel Metropol)
Tel/Fax: (+381 11) 30 35 200
Mob: (+381 63) 25 55 85
E-mail:starcar@co.yu
Website: www.starcar.co.yu
Restaurant Bevanda is a small family fish restaurant with
an exquisite offer of seafood and fish dishes from the Adriatic Sea: a variety of fresh fish, shellfish, crab, lobster and
shrimp dishes. Together with excellent food, restaurant has
an excellent choice of domestic, Dalmatian, and imported
wines.
All AmCham Members are welcome to enjoy the beauties of Mediterranean food and drinks with a 10% discount.
Contact: Zoran Simić, Director
Požarevačka 51, Belgrade
Tel: (+381 11) 24 47 446
(+381 64) 11 39 693
Fax: (+381 11) 34 42 384
E-mail: bevanda@yubc.net
64
Located directly behind Belgrade’s infamous Modern Art
Theatre, Atelier 212, and 20 feet from the illustrious KGB café,
is the Backstage, a restaurant that is most inviting while being
discreetly hidden from gawking pedestrians. We offer an
extremely attractive rate of about EUR 20 for a dinner for two.
We cater for private parties .
We are pleased to offer 10% discount to AmCham
members.
Svetogorska 19, Belgrade
Tel: (+381 11) 32 47 468
Fax: (+381 11) 34 62 632
The Restaurant Royal-Knez is situated in the very center of Belgrade
in a historic building dating from 1888. This setting used to house one
of the best known and the most popular restaurant in Belgrade,
“Independent Serbia”, a favorite place of many prominent Belgraders.
We are pleased to offer AmCham members
10% discount on each order from a menu.
Kneza Sime Markovića 10, Belgrade
Tel: (+381 11) 30 33 717
E-mail: r-knez@eunet.yu
Teleflora YU is a leading company for flower design and
delivery in Serbia and Montenegro. As a member of Teleflor
International, we have a close partnership with 82,000 florists
worldwide. We can offer you the following services: flower
delivery in Belgrade, Serbia and Montenegro, and former
Yugoslav countries, delivery in over 185 countries worldwide,
biodecoration for interior and exterior in business and other
surroundings, flower decoration for business meetings, business
lunches, anniversaries and other meetings, floral decoration for
weddings, cocktails, parties and other social meetings, and
flower decoration for cultural, musical, and social events. Our
database of 15,000 clients and about 514 comp anies who are
our permanent clients are proofs of quality of our services. You
can use our services through our on-line shop too.
We are pleased to offer to all AmCham members a
special 10% discount on all of our services.
Svetogorska 11, Belgrade
Tel: (+ 381 11) 30 30 047
(+ 381 11) 30 30 048
Fax: (+ 381 11) 30 30 049
E-mail: office@teleflora.co.yu
Website: www.teleflora.co.yu
Restaurant Colonial Sun is well known on its international cosine with fish and meat specialties, very rare traditional Serbian lamb
meals and great selection of exceptional wines. For
specialties preparing we use only fresh vegetable so our menu is without instant meals and industrial sauces. Every day from 1 p.m. do
5p.m. we arrange Swedish Table with about 20 different meals for just
700 CSD per person, and 400 CSD for children up to 12 years. While
you enjoy we will provide special care for your children: our hostess
will entertain them in fitness centre. Every Wednesday from 8 a.m.
till midnight enjoy jazz and evergreen. Every Saturday after 11p.m.
top groovy with Penthouse Bend.
To all AmCham members we offer 10 % on all our services.
Contacts: Marijan Medenica & Ljiljana Dopuđa
Bulevar Vojvode Putnika 32-34, Belgrade
Tel: (+381 11) 36 92 153
(+381 63) 30 20 40
E-mail: colonialsunmm@eunet.yu
Website: www.colonial.com
AmChamPerspective
In Belgrade, the city of two million inhabitants, we are the first
to offer the concept of service apartments, a novelty in the hotel
business that we like to think of as a home-away-from-home
concept. The “Rezime Residence” is located in a building protected as a national cultural heritage with excellent thermal and
sound insulation. The building itself is in a quiet street in the city
center, 50m away from the pedestrian zone and close to garages.
“Rezime Residence” offers a 20% exclusive discount for
members of the AmCham.
Maršala Birjuzova 22, Belgrade
Tel/Fax: (+381 11) 629 181
E-mail: rezime@sbb.co.yu
Restaurant Santiago is a Latino restaurant situated in the
center of Belgrade behind the Federal Parliament building. Our
menu offers original Chilean, Peruvian and Argentinean dishes
such as light cebiche, delicious guacamole, juicy steaks and empanadas. With glass of famous Chilean vine, we're offering a toast to all our current and future guests!
Santiago offers to the AmCham members
a 10% discount on services.
Majke Jevrosime 20, Belgrade
Tel: (+381 11) 32 37 953
SPA Centar offers 40 spa treatments used today in first-class
spas worldwide. Hydrotherapy, steam bath, aromatherapy, 12
massages, dead sea mud wraps, sea algae wraps detox and facial
treatments. We have seven spa packages (antistress, relax, detox,
oxygen, hedonist, anti-age, all day spa). You will always be
welcomed by our polite English speaking staff.
We offer Amcham members 10% discount on all
our treatments, except on already discounted prices.
Strahinjića Bana 5, Belgrade
Tel: (+381 11) 32 85 408
E-mail: office@spacentar.co.yu
Website: www.spacentar.co.yu
Alex Chauffer Services is pleased to be at your service and to
offer you something new and unique for Belgrade and
SCG - professional, prompt, discreet and luxurious chauffeur
services. Our staff is fully experienced in providing services to
international clients. We offer airport transfers, executive business
travel, sightseeing tours, and any special request at your demand.
We are pleased to offer the AmCham
members a special 15% discount to all of
our services.
Gandijeva 25/a, Belgrade
Tel: (+381 63) 20 96 98
E-mail: aca@alexchauffeurservices.com
Website: www.alexchauffeurservices.com
Discotheque Drama is known as one of the largest in
region. Its modern bright space is separated on three levels and can
host up to 1500 persons. The sound is accomplished with the best
setup consists of multi rote heads. On Thursdays, on one level we
arrange most interesting clubbing programs with all the best and
biggest stars of show business.Fridays you can get pleasure from
R&B night, Saturdays with disco-house.
To all AmCham members Drama gives
an exclusive 20% discount on VIP card.
Sarajevska 26, Belgrade
Tel: (+381 63) 48 20 63
Del Mar, the newest opened Spanish cosine restaurant is situates at the very center of the city. We offer specialties like
are: papas, paella, olla podrida, marmitako, zarzuela. Furthermore you can also enjoy in wide offer of freshly cooked pasta,
fish and meat meals with specially chosen wines. In the late
night the restaurant outgrows in dancing bar where you can
enjoy evergreen souns performed by "Old time swing band".
To all AmCham members we proudly offer 10 % on all services.
Rajićeva 12, Belgrade
Tel: (+381 63) 10 67 002
Zvezdara Teatar Restaurant is well known and famous of its international cuisine with fresh fish and meat specialties, rare traditional Serbian meals great selection of exceptional wines and professional service.
Friday 8 p.m. till midnight enjoy your meal with live music session.
To all AmCham members we offer 10 % on all our services.
Contact: Marijan Medenica & Ms. Jadranka Ikač
Milana Rakića 38, Belgrade
Tel: (+381 11) 24 19 401
(+381 63) 30 49 89
E-mail: zvezdarateatar1@sbb.co.yu
Restaurant-Raft Amsterdam is located at Oslobođenje Square near hotel "Yugoslavia." The most attractive part of the restaurant is oriental style garden. Restaurant menu consists of
good mix of Italian specialties, pizzas, barbeque dishes and good number of salads and fruit deserts. Every Friday and Saturday, popular club bands entertain the guests up until sunrise.
We give 10% discount to all AmCham members on all our services.
Kej Oslobođenja bb, Zemun
Dummy is a brand new bridge club situated in the heart of the
city. The club planned as a place for playing, learning and relaxing is
definitely a place to put on your must-see list. Whether you want
through the practice and friendship to learn how to play better or
enhance your bridge play at official tournaments for various player
levels from the beginners to masters you will surely share the
worldwide passion of the large bridge family. The club has also a basic
training 15 lessons program where you can learn the bridge alphabet.
We are proud to be the only non-smoking club.
To all AmCham members we will grant free membership
fee till the end of 2006.
Dummy Bridge Club
Makedonska 17/II, Belgrade
Tell: (+ 381 11) 33 73 678
(+ 381 63) 25 98 58
Situated in the administrative and business hart of the city,
but still in the closest background of the Belgrade's busiest squares
and streets is MaxiMilijan Restaurant, a place where time will
slow down its passage and let you value in tranquility the most
pleasant and truly authentic tastes that can be experienced.
We consider each of our guests as unique as MaxiMilijan
proofs to be, so together we can create an unforgettable
impression of joy and hospitality.
To all AmCham members we are pleased to offer 10%
discount on all of our services.
MaxiMilijan
Majke Jevrosime 23, Belgrade
Tell: (+ 381 11) 32 25 016
(+ 381 11) 32 21 579
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Member Benefit Program
Restaurant Resava is founded in 1946, and after the most recent
renovation becomes quiet place for unique gastronomic
Mediterranean romance. In previous sixty years Resava was
Belgrade's relaxation heart and represented town's food festive soul.
Restaurants' prime menu consists of Fine Mediterranean
Cuisine meals chosen among the mostly known meals from all
over the world. Working hours Monday - Saturday 12 am to 12
pm. Sundays closed.
To all AmCham members we offer
10% on all our services.
Contact: Mr. Igor Milisavljević
Resavska 24 , Belgrade
Tel: (+381 11) 323 3192
Mob: (+381 64) 160 6378
Restaurant Club Villa 69 is placed in the heart of the old town quart
Vračar where you can feel the special food experiences. We will prepare
for you various cuisines specialties: Hungarian goose liver escallops,
Italian home made pastas and French lamb al Bordeaux. Special offer is
Business lunch menu for every working day from 12 am to 5pm . We
also organize outside catering for up to 1000 people.
To all AmCham members we are
pleased to offer 10% discount on all of
our services.
Restaurant Club Villa 69
Krunska 69, Belgrade
Tel: (+381 11) 344 26 56, 31 94 971
Theatre ATELJE 212's repertoire is focused on modern drama
and is a combination of new plays of the best known local and
foreign authors. In the last few years the theatre has had guest
performances in different theatres in the former Yugoslavia,
Europe, Canada, and the United States.
To all AmCham members we offer 20% discount for
tickets on all performances. To benefit from this discount,
please contact our ticket-service. Working hours: Monday to
Sunday 10am-1pm and 6pm-8pm (except Wednesdays).
Svetogorska 21 (ex Lole Ribara 21), Belgrade
Tel: (+381 11) 32 47 342
E-mail: atelje212bilet@beotel.yu
Web site: www.atelje212.co.yu
Pan Europa Adriatic traditional programs are: vacations at the
countryside and ranches (salaš!), Serbian wine and brandy
pathways, mountain biking, long and short distance walking tours,
rafting, fungus trailing, Đula spa in Hungary, Croatian town of
Poreč and isles of Rab and Brioni.
To all AmCham members we offer discounts for following
arrangements: Poreč, Rab and Brioni…….…..8%; Countrysides
and ranches…...7%; Spa Đula and Harkanj……….20% at the part
of price states in CSD. To all other traveling arrangements
published in catalogue we offer 5% discount.
Blvd. Despota Stefana 33
Tel: (+381 11) 303 39 38, 303 39 48
Fax: (+381 11) 324 21 87
E-mail: adriatic@infosky.net
Web site: www.adriatic.co.yu
The best cookery for you! Hidden in the backstreets of
Vračar behind Vuk Spomenik, Gentlemen is Belgrade's
culinary gem. Gentlemen offers the perfect ambience for a
business lunch and dinner or for a more intimate occasion. All
major credit cards are accepted.
To all AmCham members we offer 10 %
discount on service.
Zahumska 23, Belgrade
Tel: (+381 11) 24 01 559(+381 63) 195 9159
66
Located in the center of the city, at the backstreet of
Beograđanka business center, El Toro offers international cuisine
where you can find surprising variety: delicious beef, T-bone steaks,
risotto, various chicken dishes, salads and tasty deserts. El Toro
boasts moderate prices and a Sunday discount for family meals.
To AmCham members we offer 10%
discount to all of our services.
Masarikova 5, Belgrade
Tel: (+381 11) 361 24 29
www.eltoro.co.yu
Byblos is a small Lebanese restaurant located in the heart of
Vracar that provides excellent food, friendly service and elegant
decor. Hummus, tabbouleh, mutabal, fatous, sholkaf and lamb
kebabs are some of the more popular dishes offered. The wide
menu is sure to please any appetite with its wide selection of
vegetarian dishes, grilled meats and fresh seafood. A belly
dancer performs her art on both Thursday and Saturday
evenings.
To AmCham members we offer 10%
discount to all of our services.
Kneginje Zorke 30 (ex Ivana Milutinovića),
Belgrade
Tel: (+381 11) 244 19 38
E-mail: byblos011@yahoo.com
Madlenianum Opera and Theatre is the first private opera in
Southeast Europe, with the highest quality of its operatic, ballet and
dramatic productions. Madlenianum also addresses the lovers of fine
arts and literature. The elegant space of Bel Etage, intended for special
occasions, during the whole year is the venue of exhibitions. In the
Club Bookshop, in addition to an extensive offer of belles lettres,
there is a wide assortment of musical literature as well as capital
works from the domain of operatic and musical creative work.
Madlenianum has exclusive spaces, first class technical equipment
and a competent staff for the organization of various business events.
We are pleased to offer the members of the American
Chamber the following discounts:
For performances in the production of Madlenianum
For premieres and guest performances
For lease of spaces of the Large Stage and Bel Etage
50% discount
10% discount
20% discount
Ticket-delivery service to desired address is also available.
Zemun, 32, Glavna Str.
Box office: (+381 11) 316 27 97, 316 83 93;
Marketing: (+381 11) 316 27 99;
(+381 11) 316 83 95;
(+381 11) 210 02 86;
Info Call Center: (+381 11) 206 55 06
www.madlenianum.co.yu
Vila Marija is located in heart of Belgrade, a five-minute ride
far from Slavija Square, close to highway E-75. In a quiet
neighborhood, surrounded mostly by family houses, Vila Marija
presents the best private accommodation in Belgrade with eight
highly comfortable rooms with king size beds. Each room features
bathroom, air-con, cable TV, telephone, mini-bar refrigerator. The
Vila also has a big parking lot under surveillance.
We offer to all AmCham members a 15% discount on
our service.
AmChamPerspective
Vila Marija Resort
Debarska 12, Belgrade
Tel: (+381 11) 244 84 84
E-Mail: vilabgd@vila-marijabgd.com
Web site: www.vila-marijabgd.com