1. APPLIANCE OF BP

THE BUSINESS PLAN 2003-2007 SETS OUT THE BASIC GUIDELINES AND ASSIGNMENTS FOR RTE "BEOGRAD" MANAGEMENT FOR THE FUTURE PERIOD

THE RAILWAY WILL START ITS RESTRUCTURING ON THE BASIS OF THE ADOPTED DECISION, BUT BEFORE THE ADOPTION OF THE LAW ON RAILWAY

2. PRIORITY STRATEGIC DEVELOPMENT TARGETS OF RTE "BEOGRAD" ARE:

• FINANCIAL CONSOLIDATION OF THE ENTERPRISE
• CORPORATE AND OWNERSHIP TRANSFORMATION OF THE RAILWAY (SEPARATION BETWEEN OPERATIONS AND INFRASTRUCTURE) AND DEFINITION OF RELATIONSHIP WITH THE STATE
• HARMONIZATION WITH EUROPEAN STANDARDS AND REGULATIONS IN ALL RELEVANT AREAS.

THE GLOBAL STRATEGIC TARGETS ESTABLISHED IN THE BUSINESS PLAN HAVE BEEN SPECIFIED THROUGH A SERIES OF DETAILED OPERATIONAL AND FINANCIAL TARGETS AND MEASURES TO BE IMPLEMENTED ACCORDING TO THE TIME SCHEDULE.

THE IMPLEMENTATION OF THUS DEFINED REFORM CONCEPT REQUIRES THE PROVISION OF SIGNIFICANT FINANCING, WHICH WOULD BE PROVIDED BY THE STATE'S INVOLVEMENT THROUGH WRITING OFF DEBTS, TAX AND CUSTOMS REDUCTIONS, AS WELL AS BY THE RAILWAY'S PARTICIPATION, BY RAISING OF LOANS AND SALE OF SURPLUS RAILWAY ASSETS.

THE CONTRACT PLAN BETWEEN THE STATE AND THE RAILWAY WILL PRECISELY ESTABLISH MUTUAL RIGHTS AND OBLIGATIONS.