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The Government of the Republic of Serbia

In the service of citizens

Joint construction of hydroelectrical power plants on middle reaches of Drina

Belgrade, 16 September 2010

Directors of state power utility services of Serbia Elektroprivreda Srbije (EPS) and of Republika Srpska Elektroprivreda Republike Srpske (EPRS) Dragomir Markovic and Branislava Milekic signed today at the Serbian government an agreement on cooperation in the preparation of technical documentation for construction of hydroelectric power plants on the middle reaches of the Drina River.

The agreement entails joint financing of the preparation of the feasibility and environmental impact study and represents continuation of cooperation in the field of energy between the governments of Serbia and Republika Srpska, whose representatives also signed the agreement on cooperation in the construction of three hydroelectric power plants on the middle reaches of the Drina in April this year.

The estimated value of the total investment is €819 million, Milekic said and added that the plants will be built on four or five locations, on which the decision will be made after the documentation is prepared.

Milekic recalled that in 2008, EPS and EPRS signed the Protocol on cooperation in construction of hydroelectric power plants on the upper reaches of the Drina - in Buk Bijela, Foca, Paunca and Sutjeska, whose total value is €435 million.

The preparation of the feasibility study is underway, she said, and a public invitation has been published for the selection of a strategic partner that would take part in the realisation of this project.

Markovic explained that in the beginning the plan was to build the facilities in three locations - Rogacica, Tegare and Dubravice, but later it turned out that there will be need for facilities in four or five locations.

State Secretary of the Italian Ministry of Economic Development Stefano Saglia, who attended the signing of the agreement, said that Italy is interested in importing electricity from the Balkans and that all EU members pledged to use 20% of energy from renewable sources by 2020.

Strategic partners that produce electricity from Italy, Serbia and Republika Srpska that will implement these projects are Seci Energia S.p.A., EPS and Elektroprivreda Republike Srpske.

Today’s signing of the agreement was also attended by Minister of Energy and Mining Petar Skundric and Minister of Industry, Energy and Mining of Republika Srpska Slobodan Puhalac.

Following the conference, President of the Italian company Seci Energia Gaetano Maccaferri donated medical equipment worth over €55,000 to Director of the Bezanijska Kosa clinical centre Vladimir Kovcin.

Minister Skundric, at whose initiative the donation was realised, said he expects that the strategic cooperation in energy, which Serbia and Italy began, will be most successful, stressing that the donation will help to improve medical cooperation between the Serbian and Italian clinical centres.