Vladimir Milanovic, General Manager of Energoprojekt Holding – We’re thinking of penetrating the EU market

Back in 1951, the company was founded by the decision of the Government of the People’s Republic of Serbia with the aim of designing and building the energy infrastructure in the post-war country. There are almost no hydro or thermal power plants in Serbia where the company didn’t take part in designing and building the facility. In the meantime, Energoprojekt Holding ventured into the world, expanded its activities to many areas other than energy and implemented thousands of various infrastructural, public, commercial, industrial and other projects in more than 75 countries. The list of its projects and the states they have been implemented in is a long one indeed.

Nowadays, the company is one of the most successful construction firms in Serbia, with last year’s results exceeding EUR 300 million and half a billion euros worth of jobs contracted.

The company celebrated its 65th anniversary in mid-2016. We talked to General Manager Vladimir Milovanovic about the company’s great successes.

eKapija: Energoprojekt celebrated 65 years of being active this year. Are you satisfied with this jubilee year?

– Ever since the foundation on July 11, 1951, Energoprojekt has shared the faith of all economic and other circumstances in the country, so, whenever there was peace and prosperity in the country, the company progressed and grew accordingly. The list of projects is too long, but the list of the projects we’re realizing now in 22 countries isn’t exactly short either.

This year, we’ve had the honor of Prime Minister Aleksandar Vucic’s officially opening the new railway station Prokop, the finalization of which has reached its final stage following a long pause. Also, the Forte Bank facility in the capital of Kazakhstan, Astana, was officially opened by the Kazakh prime minister and visited by President Nursultan Nazarbayev. On the opposite end of the world, we’ve had the honor of President John Dramani Mahama’s officially opening the air cargo center at the Kotoka airport in the capital of Ghana, Accra, designed and built by us to be the most modern such facility in Africa.

(Milovanovic at the opening of the Cargo Center in Ghana) Furthermore, Prime Minister Vucic officially opened the section of the E763 highway from Ljig to Preljina, where Energoprojekt had realized the construction of the Sarani tunnel in the length of 1,040 m, whose proportions are in line with the latest European norms.

eKapija: Which countries has Energoprojekt been engaged in so far?

– Our companies in London, Frankfurt, Moscow, Astana, Minsk, Algiers, Accra, Abuja, Kigali, Kampala, Lusaka, Harare, Gaborone, Doha, Abu Dhabi, Muscat, Manama, Lima and the Balkans region have operated successfully and implemented various projects for years. The projects include designing and providing consulting services in raising modern systems for generation and distribution of electricity and water in the countries of the Middle east, more accumulation dams for potable water in north Africa, construction of transport and energy infrastructure in Uganda, Nigeria and Rwanda, various construction and industry projects in Russia, Kazakhstan, Ghana and Zimbabwe, and roads and hydro power plants in Peru.

eKapija: Where have your operations and business results been the most satisfactory?

– I am satisfied with our operations in all countries where we’re realizing our business plans, but it is especially satisfying to be able use our knowledge and experience at home, in Serbia, where important infrastructural, public and commercial investments are being implemented, to contribute to the development of our own country and the recovery of the construction sector and the economy of the country.

eKapija: Are you engaged in projects in Italy? What are your experiences with Italian companies like?

– We are not engaged in Italy, since the EU as a whole and the member-states individually disable the penetration by companies outside the EU, including Energoprojekt, through an array of restrictive laws and regulations. On the other hand, the trade with Italian companies is good from both sides’ perspectives, even though the economic crisis has caused the choice in numerous Italian companies to shrink.

eKapija: What are the company’s further business plans? Will Energoprojekt soon enter new markets?

– Working abroad, anywhere far from home, requires numerous sacrifices and, under modern business conditions, a high level of professionalism and accuracy. Modern business challenges, accompanies by intensive changes in economies throughout the world, increased technological development and development of informatics society slowly morphing into the fourth technological revolution require us to change with the times and adapt to the environments we’re doing business in. Experience and knowledge acquired through contact with young experts who are permanently employed by Energoprojekt, and in whose education and skills the company invests considerable funds, have always provided the company with fresh quality and new markets. Markets east of Serbia, Africa and the Far East, remain our priority, although we’re also considering penetrating the European Union market if we manage to overcome various administrative obstacles.

(Photo: Milos Muller/shutterstock.com)

eKapija: What sort of cooperation have you established with local companies in the countries you operate in and how does it differ from the cooperation with local companies?

– Each market is specific, but seeing how we’ve operated for decades almost everywhere, our business positions and contacts, as well as cooperation with local companies, are excellent. We’ve cooperated with many local companies successfully for decades. Energoprojekt is guided by principles of socially responsibility in all countries. Depending on the intensity of business activities, we employ between 5,000 and 7,000 people abroad on average, which, along with 2,300 employees at Energoprojekt, places great responsibility on the entire management of our company regarding the realization of projects to the satisfaction of our investors and shareholders, but also regarding the progressively increasing standard of living for several thousand families. Our greatest assets are people working in and for Energoprojekt.

eKapija: You have recently highlighted the results made last year and pointed out that they exceeded EUR 300 million, as well as that half a billion euros worth of jobs had been contracted. What are your business results like towards the end of this year and do you expect 2016 to be even better?

The year 2016 has been marked by caution of investors throughout the world, primarily due to consequences of the fall of prices of oil and gas, as well as stock exchange prices of ores and minerals, but also due to war conflicts in the Middle East, the refugee crisis and the worsening of bilateral relations of great states. Furthermore, the elections in Serbia and other four countries where Energoprojekt is operating have slowed down investment activities in those markets, which will primarily impact the realization of the plan for contracting new jobs. The realization of contracts made earlier is being carried out in line with the conditions defined in them, though increasingly more investors are extending repayment periods for the works performed and are slowing down or reducing their investments. Under very complex economic conditions, I expect that the business plan for 2016 will be fulfilled regarding both revenues and profits within the margins of tolerance and that we will realize the plan for contracting new jobs by the end of the year.

The Special Issue “Italy – Partner-Country: Building Together” can be found HERE.

Energoprojekt Holding a.d. Beograd

Vlada Republike Srbije

ICE

Italian Foreign Trade Agency

ICE Belgrade

eKapija Special Issue

Special Issue eKapija

Special Issue Italy Partner Country Building Together

cooperation between Italy and Serbia

E763

Ljig Preljina highway

Sarani tunnel