Energy Efficiency

Serbia seeks to privatize district heating operator, hydraulic engineering firm

Photo: Pixabay

Published

July 31, 2018

Country

Comments

comments icon

0

Share

Published:

July 31, 2018

Country:

Comments:

comments icon

0

Share

The Ministry of Economy has invited letters of interest in the privatization of Energetika, which provides district heating services in Kragujevac, the fourth-largest city in Serbia.

The letters of interest, which are to contain a proposal of a privatization model, an indicative purchase price, an investment program, a framework business plan, and the number of jobs to be maintained at Energetika, are due by August 27 at the latest, according to an announcement from the ministry.

Energetika has debts of around RSD 16 billion (EUR 135 million) and 444 workers, infoKG.rs wrote. Energetika is among the top debtors of state natural gas company Srbijagas and state power utility Elektroprivreda Srbije (EPS), regularly featuring on lists of the biggest debtors that Srbijagas and EPS are publishing on their websites in line with the International Monetary Fund’s (IMF) requirements.

Most of the debts are legacy debts from the time when Energetika used to operate as part of former automotive group Zastava. Serbia is known to write off such debts ahead of privatization or deal with them through bankruptcy proceedings.

Kragujevac, home to carmaker FCA Srbija, has some 22,000 district heating users, including around 1,000 business customers, according to an earlier report by Beta.

Bids sought for 70% of Hidrotehnika-Hidroenergetika

The Ministry of Economy has also invited offers to buy a stake of around 70% in hydraulic engineering and construction company Hidrotehnika-Hidroenergetika.

Hidrotehnika-Hidroenergetika, which was founded in 1946, has built 52 dams in Serbia and abroad, including Tunisia, Algeria, and Libya.

The company also builds canals, pipelines, tunnels, and carries out a range of other works. Its projects in Serbia include the construction of a major interceptor sewer for Belgrade’s future wastewater treatment plant in Veliko Selo.

The transaction documents can be purchased until August 27, while the deadline to submit bids is September 3.

The starting price is set at EUR 1.93 million, which is equal to the appraised value of the 70% holding on December 31, 2017. A EUR 193,389 deposit is required.

The bids will be opened on September 5.

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

Filipe Araùjo, Deputy Mayor of Porto, Portugal and Vice President of Energy Cities, one of EUSEW partner organisations

Building resilient cities: how to align competitiveness and sustainability in Europe’s energy transition?

24 March 2025 - With the new EU Institutions taking office, it seems that the main discourse has shifted from the EU Green Deal to competitiveness. This new narrative presents both a challenge and an opportunity for European cities

Vote LUCE Awards champion women s pivotal roles green transition

Vote at LUCE Awards to champion women’s pivotal roles in green transition

19 March 2025 - LUCE Awards celebrates the outstanding contributions and achievements of women leading the way in the green transition

Bring clean heating and cooling to buildings, a circular energy economy in urban environments

Bring clean heating and cooling to buildings: a circular energy economy in urban environments

18 March 2025 - Efficient heating and cooling are crucial, yet significant thermal energy is wasted. By recovering and recycling waste heat, we can create a circular energy economy in urban areas

Energy efficiency renewables rural communities Serbia Zlatibor region GIZ

Energy efficiency, renewables in rural communities in Serbia’s Zlatibor region

11 March 2025 - Rural areas around Priboj, Čajetina and Arilje in Serbia have been heavily affected for years by power cuts. However, solutions do exist