News

Power sector reform financed with EUR 200 million

Published

October 30, 2015

Comments

0

Share

Published:

October 30, 2015

Comments:

0

Share

The European Bank for Reconstruction and Development said it is supporting a comprehensive reform programme for the power sector in Serbia by extending a EUR 200 million restructuring line to Electric Power Industry of Serbia (EPS), a state-owned utility that generates, distributes and supplies electricity.

The sovereign-guaranteed loan will help the company restructure its balance sheet and support its recovery after last year’s devastating floods, the bank said on its website. It will also assist the enterprise in reaching long-term development objectives such as commercialisation, raising standards of corporate governance and improving energy efficiency, the article adds.

Obradović: A lot of hard work lies in front of us, but we are committed to making EPS a modern, efficient and competitive regional leader in the energy sector.

EBRD’s financing will support further reforms in Serbia’s energy sector and will help achieve energy market liberalisation and to deepen regional integration in the Western Balkans by stimulating cross-border energy distribution and trade, according to the statement.

The programme will be implemented in cooperation with the Government of Serbia, alongside the World Bank and the International Monetary Fund, as part of a wider national fiscal consolidation drive. “We believe our financing will make EPS more efficient. We are pleased to be working on the modernisation of the company, increasing environmental and social standards and corporate governance. We see a lot of potential to further develop EPS as a commercial company and it is important EPS continues to implement the reforms started over the past year or two,” said Nandita Parshad, EBRD’s director for power and energy.

“EPS needed to respond urgently last year to the unprecedented and catastrophic floods which hit Serbia. This put huge strains on EPS and we commend the resilience demonstrated by the company and management at that time. This loan is hopefully the final step to help EPS recover from the damage, and by refinancing liabilities taken at the time, management will be in a position to press forward with a vision for a more efficient company”, added Daniel Berg, the bank’s director for Serbia.

“We’re delighted to be working with our long-standing partner EBRD. A lot of hard work lies in front of us, but we are committed to making EPS a modern, efficient and competitive regional leader in the energy sector,” said Aleksandar Obradović, general manager of EPS.

Since the start of its operations in Serbia, the EBRD has invested over EUR 4 billion in over 190 projects across the country. The bank invests in the financial sector, industry, commerce, agribusiness, energy and infrastructure, the article added.

Related Articles

Serbia EPS no longer dependent on imports acting CEO Tomasevic

Serbia’s power utility EPS no longer dependent on imports, acting CEO claims

27 January 2023 - EPS is importing much less electricity this winter than last one and it is not dependent on imports, acting CEO Miroslav Tomašević said

Second unit of Krško nuclear power plant projected to come online in 2035

27 January 2023 - The second unit in the Krško nuclear power plant could be in operation in 2035, but project permits are still pending

Household solar power systems overload Cyprus electricity grid

Household solar power systems overload Cyprus electricity grid

27 January 2023 - The distribution and transmission system operators in Cyprus asked for a freeze in issuing licenses for small solar power installations for self-consumption

Romania is exploring geothermal waters at 24 locations

Romania is exploring geothermal waters at 24 locations

27 January 2023 - Romania is third or fourth in Europe in geothermal energy potential. Exploration is currently being conducted at 24 sites.