The launching of major infrastructure projects in Serbia and changes in the state’s policies towards domestic construction companies has opened the doors to the greater involvement of Energoprojekt in the country, along with work on many construction sites elsewhere in the world.
Energoprojekt is today working simultaneously on building several of the most important transport and industrial projects in the country, including the Belgrade Waterfront, and on 22 other markets.
In relation to the period four or five years ago, when jobs abroad were the company’s main growth engine, in 2015 you had the almost equivalent structure of revenues from both domestic and foreign markets. What has changed in the meantime?
Recent years have seen investment in infrastructure projects in Serbia intensified and the conditions provided for the inclusion of local companies in the implementation of these projects. Thanks to that, as well as references and the competitive prices of Energoprojekt in tenders, Energoprojekt is in a position to agree and implement significantly more projects of greater financial value in Serbia.
After successfully implementing projects for the construction of a new smelter and sulphuric acid plant in Bor and the first phase of the completion of the new Prokop railway station, Energoprojekt is engaged in the construction of two sections of the Belgrade-South Adriatic Highway, on the Belgrade Waterfront project, building a pipeline from Pančevo to the Romanian border, and as a consultant is implementing several significant projects for EPS, the most significant of which is construction of block B3 at the Kostolac Thermo-Electric Plant.
Working as construction contractors in the country objectively brings lower profits, as you have yourself pointed out often. What kind of calculation have you found in participation in some of the major projects carried out by foreign companies in Serbia?
For us at Energoprojekt it is important that our young experts gain experience in working with large foreign companies that they will be able to implement in our projects abroad, and with all foreign general contractors negotiate the value of our work that also contains appropriate profits.
You are also participating in the construction of the Belgrade Waterfront, a long-term project that has prompted a lot of public attention. Which part of the project is Energoprojekt’s responsibility?
This is about building two residential and commercial towers, the first buildings of the Belgrade Waterfront project. Energoprojekt is engaged in carrying out all the work except work on the financing of the building.
We hope that we will agree to the construction of some other planned facilities at this stage in upcoming construction tenders.
Speaking at the celebration of the 65th anniversary of Energoprojekt, Prime Minister Aleksandar Vučić said that he is proud of everything Energoprojekt has ever done and built, and that when the Government of Serbia has a problem, either in talking to investors or when planning to build, it always says: “We have Energoprojekt”. Does this mean that Energoprojekt has finally been recognised for the importance it had several decades ago in Yugoslavia, and then in Serbia?
Energoprojekt has always had the support of the state, due to its importance to the national economy and its ability to execute complex projects. We are one of the few companies that have managed to overcome the obstacles and challenges of previous turbulent years.
In the coming period the key objectives of Energoprojekt are stability, growth and development, advancing all segments of Energoprojekt and its business activities
I must point out that in recent years we have had more pronounced support of the state in relation to the previous period, and certainly the public recognition of the Prime Minister is a major incentive for us.
Considering your long-standing presence in many markets of the world, in which regions of the world, apart from Serbia of course, do you feel at home?
Energoprojekt has done business in 80 countries worldwide over the past 65 years. On some markets, we have been actively present for 50 years, and in the majority for more than 40 years, and in these countries, we really feel at home. Here I am primarily referring to African countries (Algeria, Nigeria, Ghana, Uganda, Zambia and Zimbabwe), Eurasian countries (Russia and Kazakhstan), Peru and, in the last 25 years, also in the region of the Middle East – Qatar, Oman and the United Arab Emirates.
To what extent has the recently recorded recovery of the Serbian economy encompassed the construction sector and in which sectors within Energoprojekt is that felt more and in which less?
In recent years, from the start of the increase of investment in the country, a positive impact has been felt on Energoprojekt’s operations, particularly in the areas of transport infrastructure and energy, and, after a long time, in the construction sector too.
In the sector of project design services, business conditions are slowly changing for the better as investors continue to tolerate the poor quality of these services at lower prices.
To what extent have these more favourable trends, both in the operations of the company itself and generally on the market, enabling the consolidation of divisions within Energoprojekt that weren’t operating as well and were burdened by credit obligations?
Every increase in the value of contracts being implemented in the country makes it possible to quickly and completely end negative consequences from the past. Energoprojekt is not a highly indebted company and all obligations towards banks are settled properly.
In addition to marking the company’s anniversary, this is also a juncture when Energoprojekt has released a new mid-term business plan. What are your key objectives in the coming period?
In the coming period, the key objectives of Energoprojekt are stability, growth and development, advancing all segments of Energoprojekt and its business activities.
Although we were in the top 10 in the world in the late ‘80s and today we are only in 110th place among international consulting firms, and ranked 224th as works contractors, that all goes to prove that Energoprojekt is a company with vitality
I personally believe that today, during the time of the fourth industrial revolution, we have to give the greatest importance to the planned and continuous development of human resources and the application of modern technologies.
How possible is it today to attempt to see, for example, two or five years in advance, given the enormous challenges of the international markets where you do business?
Today changes happen faster and there are ever more challenges. It is hard to predict the consequences of global disturbances on the capital market, rates of major currencies, energy prices, conflict in the Middle East and so on. And despite all the extenuating circumstances, decades of experience, knowledge and teamwork have created a good basis to recognise the risks and anticipate changes in a timely manner and with considerable accuracy.
What is your benchmark when it comes to “knowhow” in your sector?
There are a lot of innovations in the various works in which Energoprojekt is engaged, but I do not come across a company that I could single out as a benchmark. Energoprojekt is and will remain the best “benchmark” for the quality of services it provides and the quality of construction it realises. Thus, the only benchmark is satisfied with investors.
How many foreign companies with lists of global references like Energoprojekt’s are present in Serbia and the region?
Increasingly more major European and global companies that are looking to enter new markets are entering this one, which for them is far less interesting. Given that Serbia is on the threshold of joining the European Union, there is an increasing number of potential investors in serious projects, and therefore interest in realising some of these investments is on the rise among companies from Europe and the world.
All of those companies know about us and many offer us different forms of cooperation, and time will show whether we will cooperate with some of these companies or whether we’ll be each other’s competitors.
Energoprojekt is the only contractor from the region that is on the list of reputable American magazine Engineering News Record. Are you satisfied with your position on this list?
I am primarily satisfied with our operations and our business position in 22 of the world’s countries. From these results, our presence on the ENR’s lists follows. Although we were in the top 10 in the world in the late ‘80s and today we are only in 110th place among international consulting firms, and ranked 224th as works contractors, that all goes to prove that Energoprojekt is a company with vitality that monitors and applies modern technology and professionally implements all contractual obligations on domestic and international markets.