AGREEMENT
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF SERBIA AND THE GOVERNMENT OF HUNGARY ON COOPERATION WITH REGARD TO THE CONSTRUCTION, OPERATION, MAINTENANCE, RECONSTRUCTION AND BREAKDOWN RECOVERY OF NATURAL GAS TRANSMISSION PIPELINE CROSSING THE STATE BORDER

("Off. Herald of RS - Treaties", No. 4/2020)

The Government of the Republic of Serbia and the Government of Hungary (hereinafter referred to as the "Parties"),

- recognizing that their cooperation is of key importance in the interest of their energy supply,

- considering the importance of the realization of a new cross border natural gas transmission pipeline (interconnector), which opens up an opportunity for real diversification of source and route and guarantees the security of gas supply for consumers in the long run,

- taking into account the Agreement between the Federal Government of the Federal Republic of Yugoslavia and the Government of the Republic of Hungary for the promotion and reciprocal protection of investments signed on 20 June 2001 in Budapest,

- in accordance with the Convention between the Federal Republic of Yugoslavia and the Republic of Hungary for the avoidance of double taxation with respect to taxes on income and on capital signed on 20 June 2001 in Budapest,

- taking into account Hungary’s obligations arising from its membership in the European Union,

agree as follows:

Article 1

Definitions

For the purposes of this Agreement, the following terms shall be construed as follows:

(1) natural gas transmission pipeline: natural gas transmission pipeline and its related equipment including telecommunication cables;

(2) construction: work within 1000 meters from the state border both in the Republic of Serbia and Hungary related to the preparation, implementation, realization and entering into operation of natural gas transmission pipeline;

(3) operation: all activities in order to provide the continuous technical functioning and the registration of the technical data of the natural gas transmission pipeline, in compliance with the technical, economic and safety conditions;

(4) maintenance: all work performed by the gas transmission operator to ensure the safe operation, to facilitate health and safety at work, environmental and property protection;

(5) reconstruction: any work not listed under 2) or 4) which results changes in the technical parameters of the natural gas transmission pipelines;

(6) breakdown recovery: all work designed to restore the normal operation after a failure;

(7) border zone: the section between the state border and the border block valve station;

(8) border control authorities: Ministry of Internal Affairs - Border Police Directorate and Ministry of Finance - Border Directorate (Republic of Serbia) and Csongrád County Police (Hungary).

Article 2

Competent authorities and implementing companies

(1) Parties entrust the implementation of this Agreement to the Ministry responsible for Energy Policy in the Republic of Serbia and the Ministry responsible for Energy Policy in Hungary (hereinafter referred to as: Ministries).

(2) Parties take measures to support the implementation of the project specified in Article 3 hereof.

(3) Following the signature of this Agreement, the Ministries inform each other of the names, registered seats and representatives of Companies (hereinafter referred to as: Companies) participating in the realization of the project.

(4) The Ministries continuously inform each other of any changes in the name, registered seat and representatives of the Companies and the advancement achieved in the realization of the project.

Article 3

Scope of the Agreement

(1) The scope of the Agreement covers the natural gas transmission pipeline to be constructed within the framework of the Serbian-Hungarian interconnector project by FGSZ Ltd. on the Hungarian side and by Gastrans LLC on the Serbian side.

(2) The coordinates of the interconnection point (termination point on the Serbian side and termination point on Hungarian side) are:

- in the Gauss-Krüger coordinate system: East, Y = 7424084.07; North, X = 5115159.25;

- in the WGS '84 coordinate system: φ = 46°10'35.43442 ", λ = 20 ° 00'40.31745";

- in EOV coordinate system: Y = 724419.614, X = 92895.614.

(3) The scope of the Agreement covers furthermore the following natural gas transmission pipelines that had been put into operation before this Agreement entered into force:

- Pipeline DN600; PN60 (name on the Hungarian side: Kiskundorozsma csp - Röszke 600), year of commissioning: 1977;

- Pipeline DN700; PN63 (name on the Hungarian side Kiskundorozsma csp - Röszke 700), year of commissioning: 1992.

Article 4

The legal situation of the persons performing work arising from the implementation of the Agreement

(1) The legal situation of the persons performing work arising from the implementation of this Agreement, their crossing of the national border and stay at the other Party’s territory shall comply with the national legislation of the respective Party.

(2) If the Companies employ persons from third countries in the course of works arising from the implementation of this Agreement, their employment or commission relationship shall comply with the national legislation related to the employment and residence of foreigners of the respective Party.

Article 5

Conditions for the performance of work arising from the implementation of the Agreement and obligations towards border control authorities

(1) The Companies shall draw up a list of names of the persons performing work arising from the implementation of this Agreement which includes the data of the valid travel document or other document prescribed for crossing the state border in accordance with national legislation, the site and the starting date of work performance, the expected completion date and the identification numbers of any documents required for persons from third countries. Only the persons on the list are allowed to move freely in the border zone, after the acknowledgement defined in Paragraph (3) hereof.

(2) The persons on the list defined in Paragraph (1) hereof may cross the state border outside border crossing points identifying themselves with their valid travel document or other document prescribed for crossing the state border in accordance with national legislation.

(3) The Companies shall send the list of names to the border control authority territorially competent at the site of the work performance at least 15 working days prior to the starting date of the works in border zone, which list shall be sent, after acknowledgement, to the border control authority of the other Party without delay. If immediate breakdown recovery activities are required, the deadline of submitting the list of names shall be three hours.

(4) The person supervising the works shall present the acknowledged list of names when demanded by border control authority on site.

(5) The Companies shall inform the border control authorities in advance of any construction, operation, maintenance, reconstruction and breakdown recovery work that may affect border signs or the line of the state border.

(6) Work related to the construction, operation, maintenance, reconstruction and breakdown recovery of the natural gas transmission pipeline shall be carried out in a way to avoid any damage of the border signs marking the state border line, border signs on border bridges and other signs.

(7) Border control authority shall verify the content and authenticity of the information received from the Company of its own country before sending these to the other Party. In case of immediate breakdown recovery activities, this verification shall not create any undue delay in starting the recovery activities in three hours after the necessary communication stipulated in Paragraph (3) hereof.

(8) Border control authorities of the Parties shall prepare a document that will more specifically regulate the conditions for carrying out activities arising from the implementation of the Agreement and obligations towards the authorities in charge of border control activities referred to in Paragraphs (1) to (7) of this Article.

Article 6

Internal regulations and safety

(1) The Companies shall take measures in time and in compliance with the national legislations of the Parties to obtain the necessary licenses for the performance of the construction, operation, maintenance, reconstruction and breakdown recovery work of the natural gas transmission pipelines.

(2) The construction, operation, maintenance, reconstruction and breakdown recovery work of the natural gas transmission pipelines shall be performed in compliance with the national legislation, including the ones related to health and safety at work regulations in force at the Party in whose territory the natural gas transmission pipeline concerned is located.

(3) In the course of the construction, operation, maintenance, reconstruction and breakdown recovery work, border control authorities have the right to access the sites of construction, operation, maintenance, reconstruction and breakdown recovery work for the purpose of carrying out prescribed tasks in accordance with the national legislation of the Parties.

Article 7

Settlement of disputes

(1) In the case of any circumstances emerging to prevent the implementation of the obligations of either of the Parties or any disputes arising regarding to the interpretation or application of this Agreement, the Ministries shall conduct consultations in order to find a mutually acceptable solution and ensure the implementation of this Agreement.

(2) Disputed issues related to the interpretation or application of the provisions of this Agreement that cannot be settled through consultations between the Ministries shall be settled by the Parties by way of negotiations.

Article 8

Other provisions

(1) The activities related to the natural gas transmission pipelines specified under Article 1 (2)-(6) hereof shall be implemented by the cooperation between the Companies indicated in Article 3 (1) hereof,

(2) For the activities specified under Paragraph (1) hereof, these Companies shall assume exclusive responsibility.

(3) Parties shall take measures to facilitate the activities of the Companies specified under Paragraph (1) hereof in compliance with their national legislations.

Article 9

Notification

(1) Parties shall mutually inform each other about the starting date of any activity arising from the implementation of this Agreement.

Article 10

Final provisions

(1) This Agreement shall be signed by the Parties for an indefinite period.

(2) This Agreement shall enter into force on the 30th (thirtieth) day following the receipt of the latest diplomatic note by which Parties inform each other that they have fulfilled any and all internal law provisions necessary for the entry into force of the Agreement.

(3) This Agreement may be terminated by either Party at the time when the operation of natural gas transmission pipeline crossing the border of the Parties ceases, by means of written notification of the other Party through diplomatic channels. In this case, the Agreement shall lose effect after 12 (twelve) months from the day of forwarding through diplomatic channels, of the notification of termination.

This Agreement may be amended based on a consent in written form, by the Parties. The amendments shall take effect according to the procedure under Paragraph (2).

IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Agreement.

Done at BUDAPEST on 14 (day) of June (month) 2019 (year) in two originals, in English language.

For the Government
of the Republic of Serbia

 

For the Government
of Hungary