In 2022, the Institute for Water Management “Jaroslav Černi” was privatized despite strong opposition from citizens and experts. The potential opening of a Rio Tinto mine has highlighted the importance of safeguarding institutions of strategic significance. The debate surrounding the lithium mine project is crucial for society, intersecting issues of environmental protection, public versus private interests, politics, economics and public health. Recent discussions, including contributions from participants in the program “Utisak nedelje,” have underscored these concerns.
During the debate, a stark reminder emerged: when institutions meant to defend public interests are handed over to private companies, it undermines the credibility and trust built over generations. This is particularly true for the Institute for Water Management “Jaroslav Černi.”
Major water reserves in Jadar
Professor Zoran Stevanović, a hydrogeologist, emphasized that the water resources in the Jadar area are double or nearly triple those currently used for supplying water to Belgrade’s 1.7 million residents. He cited data from the Institute “Jaroslav Černi,” which is now involved in the Rio Tinto project. According to a study from 1972, the area can yield 19.9 cubic meters of water per second, while Belgrade currently utilizes about 6.5 cubic meters. This capacity has been confirmed in subsequent studies, indicating its potential for irrigation and drinking water.
Privatization news
Recent reports indicate that Milenijum Tim, the majority owner of the Institute “Jaroslav Černi,” will exercise its right under the Companies Act to buy out remaining shareholders. They plan to purchase the remaining 45,016 shares at 48 dinars each, completing the acquisition of the renowned water management institute, which was privatized with the obligation of recapitalization in early 2022.
Founded nearly a century ago, the Institute has played a pivotal role in studying water resources across the former Yugoslavia, contributing to the development of major hydrotechnical projects in the region. Despite its profitable operations, generating around 10 million euros annually, the privatization decision faced strong resistance due to the institute’s strategic importance.
Public interest concerns
The privatization of “Jaroslav Černi” contradicts the goals outlined in Serbia’s Water Management Strategy, which stresses the need for greater expertise in water management and emphasizes the importance of state institutions.
Previous investigations by RERI highlighted the institute’s role in ongoing projects that have raised concerns among environmental activists, urban planners, and legal experts. These include urban development along the left bank of the Danube in Novi Sad and plans for the lithium mine in Jadar.
In May, the general director of the institute, Prof. Dr. Dejan Divac, refused a request from the environmental group Prvi prvi na skali (PPNS) to provide studies conducted for Rio Tinto, raising further concerns about transparency.
The implications of this privatization are beginning to crystallize, and experts warn that the full consequences may only become clear in the months and years ahead.
