EMS: EUR 21.5 million in loan and grant for Trans-Balkan corridor construction

Photo: www.ems.rs


March 3, 2017






March 3, 2017





The state-owned company Elektkromreža Serbia (EMS) signed an agreement on a loan for the construction of a part of Trans-Balkan corridor Kragujevac-Kraljevo with the German bank KfW.

The loan agreement which will provide EUR 15 million for the second section of the first phase of the Trans-Balkan corridor construction through Serbia was signed by Jelena Matejić, the acting director of EMS, Aleksandar Antić, the minister of mining and energy and the representatives of KfW.

The loan repayment period is 12 years including the grace period of three years. The loan will be repaid in semi-annual installments at the interest rate of 0.8 percent per annum. The deadline for the withdrawal of the loan is June 30, 2020, while the commitment fee is 0.25%. The loan guarantees are provided by the Government of Serbia.

An agreement on a donation of EUR 6.5 million under the Investment Framework for the Western Balkans (WBIF) was also signed. The remainder of the needed funds will be provided by EMS.

“Without the aforementioned funds EMS could not alone finance Trans-Balkan corridor which is a project of enormous state, regional, and European importance,” said Matejić and added that she hopes that the company will have the support of the Federal Republic of Germany and the European Union (EU) in the future too.

Michael Davenport, Head of EU Delegation in Serbia, and Axel Dittmann, the German Ambassador to Serbia, also attended the ceremony.

The second section of the first phase of the Trans-Balkan corridor construction in Serbia involves the raising the transmission grid in Central and Western Serbia to the 400 kV voltage level. The average age of equipment installed on the 220 kV transmission network in these parts of Serbia is 50 years, which is why it needs to be replaced.

The construction of the Kragujevac-Kraljevo 400 kV transmission line, the extension of 220/110 kV Kraljevo 3 to 400 kV as well as the unfolding of a new 110 kV voltage level contribute to improving voltage conditions in the South-Western Serbia network, especially in the region of Novi Pazar and Raška, read a press release published by EMS.

The total length of 400 kV transmission lines planned to be constructed in the first phase of the Trans-Balkan corridor project over the next ten years is around 320 km, of which almost 260 km are so-called double 400 kV transmission lines. The increase in the installed capacity in substations on the corridor in the first phase of implementation is about 1200 MVA while a total estimated budget for the first phase of the Trans-Balkan corridor construction project is around EUR 160 million.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles


Kosovo* allocates EUR 40 million to cover unpaid electricity bills in northern municipalities

11 August 2022 - Residents of the four Serb-majority municipalities in the north of Kosovo* have not been paying electricity bills for over two decades

SEEPEX chief Power prices Southeastern Europe EUR 500 MWh fourth quarter

SEEPEX chief: Power prices in Southeastern Europe reach EUR 500 per MWh for Q4 2022

11 August 2022 - Futures for settlement in the fourth quarter indicate an electricity price in Southeastern Europe of EUR 500 per MWh, chief of SEEPEX Miloš Mladenović said


Drought lowers hydropower plant output in Serbia, Europe

10 August 2022 - The water flow in Serbia's hydropower system dropped by a half, increasing the need for electricity imports, but the situation is similar across Europe

Norway power export controls drought hydropower reservoirs

Norway to impose power export controls

09 August 2022 - Norway is preparing a framework for limiting electricity exports at times when the levels of water in hydropower accumulations are low