Investment Opportunities in Serbian Energy Sector

Transcription

1 Energy Investment Opportunities in Serbian Energy Sector Aleksandar Nedeljkovic, FDI Advisor for RES Projects at Serbia Investment and Export Promotion Agency (SIEPA)

2 Presentation Outline Short introduction to Serbia Serbian FDI trends Serbian energy sector outlook Benefits of Serbia About SIEPA

3 Energy Short introduction to Serbia

4 About Serbia Area: 88,361 km2 Population: 7.5 million Official Language: Serbian State Form: Democratic Republic ( million Capital: Belgrade (1.7 Currency: Serbian Dinar (RSD)

5 European Union path EU candidacy status achieved in March 2012 SAA Agreement signed in 2008 Trade interim agreement with EU since 2009 VISA liberalization for Serbian citizens since Dec 2009 European Union standards are being implemented as our path towards EU gets paved

6 Serbian economy trends and plans 5,4 GDP growth rate (%) 5,4 3,6 3,8 Unemployment rate (%) 21,8 21,6 18, ,9 14,4 24,4 1 1,9 1, ,5 13,6 7,3 Inflation (%) 11,0 8,6 6,6 10,3 7,0 4,2 Import and Export ( million)

7 Energy Serbian FDI trends

8 Serbia FDI analysis 2001/2011 Countries by value Source: SIEPA

9 Serbia FDI analysis 2001/2011 Countries by # of projects Source: SIEPA

10 Serbia FDI analysis 2001/2011 Sectors by value Source: SIEPA

11 Serbia FDI analysis 2001/2011 Sectors by # of projects Source: SIEPA

12 Energy Serbian energy sector outlook

13 Gross inland consumption Source: Official data of the Republic Statistical Office for 2010.

14 Energy supply & demand Source: Official data of the Republic Statistical Office for 2010.

15 Consumption of electrical energy in Serbia (projection) GWh Diagrammtitel Увоз Import Production Производња (New (нови capacities) капацитети) Production Производња (old (стари capacities) капацитети) Бруто Gross потрошња consumption Source: EPS Based on the projections of Electric power industry of Serbia, consumption of electrical energy in Serbia will increase by about 13% from 2010 to 2020

16 Foreign direct investments in energy sector ( million) Source: National Bank of Serbia * - Until 2011, the figures include FDI in energy and water infrastructure, while in 2011 figure represents FDI only in energy sector

17 RES investment process Energy permit Construction permit Privileged Producer Status & Feed-in tariff Energy License <1 MW N/A Local Government / Municipality Ministry of Infrastructure and Energy and PPA with EPS N/A 1-10 MW Ministry of Infrastructure and Energy Local Government / Municipality Ministry of Infrastructure and Energy and PPA with EPS Energy Agency (AERS) >10 MW Ministry of Infrastructure and Energy Ministry of Environment, Minning and Spatial Planning Ministry of Infrastructure and Energy and PPA with EPS Energy Agency (AERS)

18 Energy Benefits of Serbia

19 Equality in every sense National treatment of foreign investors Free repatriations of financial and other assets, profits and dividends No industry restriction for foreign investments. No issues with hiring international staff Availability of special programs offered by the Government Easy access to all levels of Government and its institutions

20 Human resources Around university and 2-year college graduates, and high school graduates per year Top quality technical education at both high school and university level A wide availability of highly qualified staff Strong command of the English language

21 Special taxes Salary Tax Rate Corporate Profit Tax Serbia 10% Bulgaria 10% Romania 16% Poland 19% Slovakia 19% 19% Croatia 19% Hungary 10-19% 0% 5% 10% 15% 20% Serbia 12% Czech Republic 15% Romania 16% Slovakia 19% Bulgaria 20% Hungary 17-32% Poland 18-32% Croatia 12-40% 0% 10% 20% 30% 40% VAT Serbia 18% Slovakia 20% Czech Republic 20% Bulgaria 20% Poland 23% Croatia 23% Romania 24% Hungary 25% 0% 5% 10% 15% 20% 25%

22 Special financial incentives Projects are evaluated to a set of criteria Investors have 3 years to finish the project Payments follow the project life cycle 4 tranches of 25% each Each payment is backed by a bank guarantee After the project is completed a bank guarantee for the full amount on 3 years is submitted Employ min 50 people Invest 500K / 1 Mill EUR Stay 3y after project completion 4,000 to 10,000 EUR for each employee! Since 2006, SIEPA granted more then 200 million EUR worth of cash grants.

23 Other incentives The National Employment Service Grants The National Employment Service (NES) grants include: the Employment Subsidies Program, the Apprentice Program, and the Re-Training Program. Corporate Income Tax Holiday Companies are exempt from Corporate Income Tax for a period of 10 years starting from the first year in which they report taxable profit if they invest in fixed assets an amount exceeding 8 million, and employ at least 100 additional employees. Corporate Income Tax Credits The amount of tax payable can be reduced by 20% or 80% of the amount invested in fixed assets for the respective tax period. This reduction cannot exceed 50% of the total tax liability for a single year. If not used entirely in the course of one year, this tax credit can be carried forward for a maximum period of 10 years. Customs-Free Imports of Machinery and Equipment Foreign investors are exempt from paying customs duty on imported equipment and machinery which represents the share of a foreign investor in a capital of a company in Serbia.

24 Energy SIEPA at your service

25 SIEPA at your service Assistance in various activities Selecting suppliers Linking all stakeholders Project aftercare Promoting investments Web site Conferences Investment seminars Project management Managing investment projects Providing informatio n General data Financial grants administration Tax, legal, other assistance Selecting investment location Municipal data Brownfield locations Greenfield locations Tax and legislation Sector analysis, brochures

26 Thank you for your attention!