November 8, 2024
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Serbia: Loan agreement for Obrenovac-New Belgrade heating pipeline approved

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Serbian Parliament confirmed the agreement on the loan for the construction of the Obrenovac-New Belgrade heating pipeline signed with the Chinese Export-Import Bank.

In January, Deputy Mayor of Belgrade Goran Vesic said that the city has secured a 193 million euros loan for the construction of heating pipeline. He explained that the project aims to have hot water, which is the byproduct at the thermal power plant in Obrenovac, used for the heating of Belgrade. District heating utility Beogradske Elektrane will fund 15 % of the project, whereas the rest of the money will be provided by the Government. The expropriation of the land has already started and is expected to be completed in September, after which the construction could start. The heating pipeline is expected to be completed in two years. Annual savings for district heating services will amount to about 16 million euros. In June 2017, Serbian Ministry of Mining and Energy, the city of Belgrade and thermal power plant Nikola Tesla complex (TENT) have signed a Memorandum of Understanding (MoU) on the construction of Obrenovac-New Belgrade heat pipeline with Power Construction Corporation of China. Minister of Mining and Energy Aleksandar Antic said that the construction of this pipeline will save Serbia about 43 million euros per year needed for importing natural gas for Belgrade heating plant. He added that the project was economically justifiable and very important since it would provide additional security in terms of energy supply. The value of the project was initially estimated to 170 million euros.

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