THE BASIC INVESTMENT OBJECTIVES DURING THE PERIOD UNDER CONSIDERATION ARE SCHEDULED TO PROVIDE:

• UPGRADING OF THE EXISTING INFRASTRUCTURE FACILITIES TO BE ABLE TO ACCEPT THE EXPECTED TRAFFIC VOLUME
  UPGRADING OF TRACTIVE FLEET
• INSTALLATION OF NEW INFORMATION SYSTEMS, ACQUISITION OF SOFTWARE AND STAFF TRAINING
• RAISING OF THE PRODUCTIVITY OF LABOR THROUGH INVESTMENTS ACCORDING TO A SPECIAL PROGRAMME FOR SOLVING THE SURPLUS LABOR PROBLEM, MEETING THE NEEDS FOR RETRAINING AND POSSIBLE EARLY RETIREMENTS
• IN ORDER TO PLACE IN OPERATION AS EARLY AS POSSIBLE THE FACILITIES BUILT SO FAR, FURTHER INVESTMENTS ARE REQUIRED IN CONSTRUCTION OF THE BELGRADE RAILWAY JUNCTION BY A SPECIAL PROGRAMME
• INVESTMENTS INTO MODERNIZATION OF EQUIPMENT OF AN ONLY STATION FOR WASHING AND DISINFECTION OF FREIGHT WAGONS AND IN REPLACEMENT OUTSIDE THE BELGRADE CENTER

SPECIFICATION OF TOTAL INVESTMENTS

(000 EUR)

DESCRIPTION	YEAR
	2003	2004	2005	2006	2007	TOTAL
1. INFRASTRUCTURE	224,139	275,219	228,7774	172,382	116,070	1.016,584
2. ROLLING STOCK*)	50,346	89,671	152,640	100,065	42,474	435,196
3. INTERMODAL EQUIPMENT	810	500	500	300	100	2,210
4. INFORMATION SYSTEM	2,440	3,740	4,610	2,920	1,130	14,840
INVESTMENTS IN BASIC ASSETS	277,735	369,130	386,524	275,667	159,774	1.468,830
5. STUDIES AND PROJECTS	450	300				750
6. ENVIRONMENT	2,500	2,000	2,000	1,500	0	8,000
7. HUMAN RESOURCES	4,604	2,496	2,000	0	0	9,100
TOTAL	285,289	373,926	390,524	277,167	159,774	1.486,680

*) The figure includes the resources for rolling stock maintenance

THE INVESTMENT PLAN REPRESENTS THE PRIORITY NEEDS OF RTE "BEOGRAD" IN THE SCOPE OF INFRASTRUCTURE AND ROLLING STOCK IN ORDER TO QUALIFY THOSE ELEMENTS FOR REALIZATION OF THE EXPECTED VOLUME OF PASSENGER AND FREIGHT TRAFFIC INCLUDING ACCEPTABLE LEVEL OF SERVICE QUALITY. CONSIDERING THE FORMER PERIOD OF BAD MAINTENANCE OF STABILE AND MOBILE MEANS, WE CAN SAY THAT EVEN WITH THOSE, RELATIVELY MODEST REQUIREMENTS, THE DEFINED INVESTMENT PLAN MOSTLY REMAINS UNCOVERED BY INVESTMENT SOURCES. FOR ITS COVERING IT IS NECESSARY TO PROVIDE OWN MEANS AND FAVORABLE LOANS AND CREDITS. FOR NOW, THE ACTUAL LOANS ARE THOSE OBTAINED FROM THE EBRD AND EIB IN THE SCOPE OF THE REALIZATION OF THE PROJECT ENTITLED "REHABILITATION OF THE RAILWAY INFRASTRUCTURE IN SERBIA", WHICH INCLUDES EMERGENCY MEASURES, I.E. QSR PROJECTS.