French Sagem to open its unit in Niš after all

(Photo: Sagem)

The Mayor of Niš, Miloš Simonović, said today (May 17, 2010) that French Sagem would open its unit in that city upon the announcement of the tender for replacement of electric meters by the Electric Power Company of Serbia (EPS).

- The City of Niš has fulfilled all of its obligations and what Sagem asks from the Government of Serbia is transparency in the tender procedure - he told Beta agency.

Simonović added that the management of EPS had signed the credit arrangements with the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) in order to complete the financial structure for the tender.

He said that Sagem was expected to start equipping its factory on the grounds of Electronic Industry Niš upon announcement of the tender for replacement of electric meters.

The Government of Serbia and the City of Niš signed the Protocol on cooperation with French company Sagem on March 27, 2009, which was supposed to enable opening of the unit for production of electric meters by the French company within the Niš-based electronic industry.

Serbian Deputy Prime Minister Božidar Đelić said after the Protocol was signed that Sagem would invest EUR 1m in the factory during the first year and minimum EUR 6m within the next five years, as well as that 250 people would be employed.

The Chairman of Sagem's Administrative Board, Patrick Sevian, announced on the occasion of the signing of the Protocol that the installation of production units in Niš would start in few months, but nothing has happened ever since.

Đelić pointed out last night in Niš that Sagem had not given up the opening of the units in that city and that it was good that one such big company had recognized the opportunity to develop large unit for production of smart electric meters in Niš, once the conditions were created for that.

- The precondition for that is the announcement of tenders for procurement of electric meters, but the activities involved in the negotiations and provision of the loans and guarantees for these loans are not being executed at the desired speed - said Đelić.

CEO of the Electric Power Company of Serbia (EPS), Dragomir Marković, said earlier in Niš that the tenders for electric meters would be announced either in September or in October 2010 and that the preparation of tender documentation was underway.