New programmes awaits loans - World Bank's loan for development of small and mid-sized enterprises in Bor and Majdanpek

The state will insist on investment of the loan of 42.34m USD, granted by the World Bank for realization of the "Regional Development of Bor" project, in new programmes for development of small and mid-sized enterprises in Bor and Majdanpek instead of in refurbishment of flotation barren land - it is announced on the website of Mining-Smelter Basin (RTB) "Bor".

- During the talks with the Minister of Mining, Petar Škundrić, about the World Bank's funds for Bor and Majdanpek, the agreement was made that the money should be invested in new programmes for small and mid-sized enterprises, which would increase employment rate in Bor and Majdanpek, while the refurbishment of consequences of 100-year mining activities in Basin Bor should commence after that - it is stated on thewebsite of of RTB "Bor".

The Mayor of Majdanpek, Dragan Popović, suggested that the company that would run crediting activities on behalf of the World Bank should be founded in Majdanpek, while the WB's branch office was situated in Bor. Minister Škundrić agreed to the proposal.

However, according to the contract that was signed with WB, the condition for approval of the loan is that RTB enters privatization process, as well as that a new copper smelter be built in Bor. Therefore, it is uncertain if the representatives of this finance institution will agree to change the conditions for approval of the loan.

According to the contract, 32.34m USD will be spent on refurbishment of all flotation barren land sites in Bor and prevention of further flooding of wastewater from the units of RTB "Bor". The rest of the loan, which is granted according to IDA terms (no interest, with grace period of 10 years, and repayment period of 25 years), will be spent on stimuli for new employment.