Q:
A:
Third phase of district heating system upgrade in Serbia
Belgrade,
7 February 2008
Minister of Energy and Mining Aleksandar Popovic and Minister of Finance Mirko Cvetkovic signed agreements on behalf of the Serbian government with representatives of six municipalities in Serbia on the use of funds from the German credit bank for development (KfW) intended for upgrading the district heating system in Serbia.
According to an agreement signed in 2006, Germany wrote off €25 million of Serbia's foreign debt (to the Paris Club of Creditors), with the obligation that the Serbian government invests €5.5 million of its own funds into the third phase of the Programme for upgrading the district heating system in Serbia, implemented by KfW.
The first two phases of the district heating system upgrade were implemented at heating plants in Belgrade, Nis and Novi Sad. The third phase of the Programme will include 6 heating plants from Serbia which have become beneficiaries according to KfW criteria, and these are heating plants in Sombor, Pirot, Kraljevo, Kragujevac, Nis and Zrenjanin.
In the third stage of the project, KfW is assisting with €20 million, of which €8 million are donations, and €12 million will be used for financing the heating plants under very reasonable terms, i.e. with a repayment period of 12.5 years, including a grace period of 2.5 years, and an interest rate of 2%.
The heating plants will invest around €10 million from their own funds in this programme whose total worth is around €35.5 million.
The purpose of the programme is to modernise the remote heating system and companies producing and distributing heat. This should be done by way of procuring state-of-the-art equipment which will enable the introduction of a payment system based on the amount of energy used by consumers, whereas heating charges are currently determined on the basis of the amount of energy spent per square or cubic metre.
The first two phases of the district heating system upgrade were implemented at heating plants in Belgrade, Nis and Novi Sad. The third phase of the Programme will include 6 heating plants from Serbia which have become beneficiaries according to KfW criteria, and these are heating plants in Sombor, Pirot, Kraljevo, Kragujevac, Nis and Zrenjanin.
In the third stage of the project, KfW is assisting with €20 million, of which €8 million are donations, and €12 million will be used for financing the heating plants under very reasonable terms, i.e. with a repayment period of 12.5 years, including a grace period of 2.5 years, and an interest rate of 2%.
The heating plants will invest around €10 million from their own funds in this programme whose total worth is around €35.5 million.
The purpose of the programme is to modernise the remote heating system and companies producing and distributing heat. This should be done by way of procuring state-of-the-art equipment which will enable the introduction of a payment system based on the amount of energy used by consumers, whereas heating charges are currently determined on the basis of the amount of energy spent per square or cubic metre.
-
Belgrade, 7 November 2025Gratitude to Italy for continuous support for Serbia’s European path
-
Belgrade/Doha, 4 November 2025Serbia among signatories of new declaration on social development in Doha
-
Belgrade, 3 November 2025Assessments of Serbia’s reform efforts should be based on realistic indicators
-
Belgrade, 28 October 2025Improving comprehensive cooperation between Serbia, Ireland
-
Belgrade, 28 October 2025Rotation of Serbian Armed Forces medical team in mission in Central African Republic
-
Belgrade, 22 October 2025Police working intensively to clarify incident outside parliament
-
Belgrade, 8 October 2025Strong protest over continued arming of Priština, violation of UN Security Council Resolution 1244
-
Topola, 7 October 2025Diplomatic corps visits Topola, Oplenac
-
Belgrade, 6 October 2025Continuation of intensive cooperation with Russia in all areas of mutual interest
-
Belgrade, 6 October 2025Boat carrying several Chinese citizens capsizes on Danube