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EPS receives €30 million loan from German KfW bank
Belgrade,
9 September 2005
Serbian Minister of Energy and Mining Radomir Naumov attended today the signing of a loan agreement between the Serbian Electric Power Company (EPS) and German state-owned banking group KfW. The €30 million loan will be used for the reconstruction of the Bajina Basta hydroelectric power plant.
Author:
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The loan has favourable terms, meaning that it is interest-free, with a repayment period of 15 years and a five-year grace period, a 0.25 percent provision fee for any undrawn portion of the loan and a 0.75 percent rate for loan-servicing fees.
Naumov stressed that Serbia will share in the benefits of this loan’s favourable terms in such a way that EPS will make payments totalling 2.5 percent of the outstanding loan to the budgetary fund on a yearly basis.
According to the Minister, these funds will be primarily used to finance environmental projects in the energy sector, including projects that will enhance energy efficiency.
He recalled that in the last five years, priorities in the energy sector have been reconstruction of production capacities and increasing the production of coal and electricity, but now are shifting towards environmental protection and energy efficiency.
Naumov said that in the first six months of the year, EPS achieved the highest semi-annual output recorded over the past 15 years, coming in at 19.6 billion kilowatt-hours of electricity. This is the result of the revitalisation and modernisation of production capacities.
He voiced hope that EPS will remain the leader in the energy sector in the Western Balkans and that by the end of the year it will become a main player in the regional electricity market, which is set to become an integral part of the pan-European energy market.
The signing of an agreement on the formation of a regional energy market of the countries of southeastern Europe is scheduled for October 26, according to Naumov.
Vasilije Pavicevic, Director of the Drina hydroelectric power plants, to which Bajina Basta belongs, said that in early 2006 a tender for choosing a contractor should be invited, while the initial works on the reconstruction of the hydroelectric power plant should begin in spring 2008 and will last four years.
Pavicevic explained that the purpose of modernisation is to enhance the plant's power and secure reliable electricity production over the next 30 years.
He added that the investment is worth €46 million, €30 million of which has been secured through loans, while €16 million will be set aside from EPS's revenues from the sale of electricity.
Naumov stressed that Serbia will share in the benefits of this loan’s favourable terms in such a way that EPS will make payments totalling 2.5 percent of the outstanding loan to the budgetary fund on a yearly basis.
According to the Minister, these funds will be primarily used to finance environmental projects in the energy sector, including projects that will enhance energy efficiency.
He recalled that in the last five years, priorities in the energy sector have been reconstruction of production capacities and increasing the production of coal and electricity, but now are shifting towards environmental protection and energy efficiency.
Naumov said that in the first six months of the year, EPS achieved the highest semi-annual output recorded over the past 15 years, coming in at 19.6 billion kilowatt-hours of electricity. This is the result of the revitalisation and modernisation of production capacities.
He voiced hope that EPS will remain the leader in the energy sector in the Western Balkans and that by the end of the year it will become a main player in the regional electricity market, which is set to become an integral part of the pan-European energy market.
The signing of an agreement on the formation of a regional energy market of the countries of southeastern Europe is scheduled for October 26, according to Naumov.
Vasilije Pavicevic, Director of the Drina hydroelectric power plants, to which Bajina Basta belongs, said that in early 2006 a tender for choosing a contractor should be invited, while the initial works on the reconstruction of the hydroelectric power plant should begin in spring 2008 and will last four years.
Pavicevic explained that the purpose of modernisation is to enhance the plant's power and secure reliable electricity production over the next 30 years.
He added that the investment is worth €46 million, €30 million of which has been secured through loans, while €16 million will be set aside from EPS's revenues from the sale of electricity.
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