In 2022, the Institute for Water Management “Jaroslav Černi” was privatized following strong opposition from citizens and experts. The potential opening of a Rio Tinto mine has been cited in discussions about protecting institutions of strategic significance. The lithium mine debate has also been linked to environmental protection, public versus private interests, politics, economics, and public health, including remarks made during the program “Utisak nedelje”.
Speakers in the debate pointed to concerns that transferring institutions intended to defend public interests to private companies can affect credibility and trust built over generations. The focus of those concerns included the Institute for Water Management “Jaroslav Černi”.
Water resources in the Jadar area
Professor Zoran Stevanović, a hydrogeologist, said that water resources in the Jadar area are double or nearly triple the amounts currently used to supply water to Belgrade’s 1.7 million residents. He cited data from the Institute “Jaroslav Černi,” which is described as being involved in the Rio Tinto project. According to a study from 1972, the area can yield 19.9 cubic meters per second, while Belgrade currently uses about 6.5 cubic meters per second.
Stevanović added that subsequent studies confirmed this capacity. He said the potential use includes irrigation and drinking water.
Share buyout plan after 2022 privatization
Recent reports state that Milenijum Tim, described as the majority owner of the Institute “Jaroslav Černi,” plans to buy out remaining shareholders under the Companies Act. The reported plan involves purchasing 45,016 shares at 48 dinars each. This would complete an acquisition of the institute that was privatized with an obligation of recapitalization in early 2022.
The institute was founded nearly a century ago and has been described as studying water resources across the former Yugoslavia. It has also been credited with contributing to major hydrotechnical projects in the region. The reports say it generated around 10 million euros annually, while privatization faced resistance tied to its strategic importance.
Policy and transparency concerns raised by investigations
The privatization of “Jaroslav Černi” has been described as conflicting with Serbia’s Water Management Strategy. That strategy is said to stress greater expertise in water management and emphasize the importance of state institutions.
Investigations by RERI have been cited as highlighting the institute’s role in ongoing projects raising concerns among environmental activists, urban planners, and legal experts. Those projects include urban development along the left bank of the Danube in Novi Sad, as well as plans for a lithium mine in Jadar.
In May, Prof. Dr. Dejan Divac, general director of the institute, refused a request from the environmental group Prvi prvi na skali (PPNS). The request concerned studies conducted for Rio Tinto.
The implications of the privatization are described as beginning to take shape, with experts warning that full consequences may become clearer over subsequent months and years.