Power sector reform financed with EUR 200 million


October 30, 2015





October 30, 2015




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

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

Siemens Gamesa world first offshore wind turbine recyclable blades

Siemens Gamesa installs world’s first offshore wind turbine with recyclable blades

09 August 2022 - RWE started to test a wind turbine from Siemens Gamesa with fully recyclable blades at its offshore project Kaskasi

EU supports Serbia loans grant power interconnections smart metering

EU supports Serbia with loans, grant for power interconnections, smart metering

08 August 2022 - Serbia is getting a grant of EUR 17 million for power interconnections and a smart metering project. They are worth EUR 81 million in total and financed with loans.


Republic of Srpska plans to install 50,000 small solar power plants

08 August 2022 - The Republic of Srpska has adopted a program that envisages installing 50,000 small solar power plants on residential and commercial facilities