Photo: Th G from Pixabay
Serbia’s electricity distribution system operator Elektrodistribucija Srbije has secured a EUR 50 million credit package for the modernization of its network. The Government of Serbia will be the guarantor for a EUR 40 million loan from OTP Bank Serbia and EUR 10 million from Banca Intesa.
Providing state guarantees for two loans is a condition for DSO Elektrodistribucija Srbije (EDS) from the contracts that it signed with the creditors ten days earlier, according to the draft law on providing guarantees, which is now in procedure in the National Assembly of Serbia.
The utility said it would use the funds to upgrade the distribution grid. The expected period for the implementation of all planned works is one year.
The contracts stipulate that the credit package needs to be repaid in seven years including a three-year deferral. The annual interest rate is 4.94% plus the six-month Euribor for the EUR 10 million loan, and 4.95% plus the six-month Euribor for the EUR 40 million.
Almost 40,000 wooden poles will be replaced
The distribution network improvement project envisages the replacement of wooden poles on the existing low-voltage grid with concrete poles, the replacement of non-insulated conductors with a self-supporting cable, and the adaptation of household connections.
EDS has already selected the sections of the network for the project, and they are part of the distribution areas of Kraljevo, Niš and Kragujevac. The technical documentation has been prepared for a large part of the endeavor. The plan is to replace 39,671 poles.
The total estimated value of the works is RSD 5.9 billion (EUR 50 million).
The network reconstruction is envisaged to reduce losses, maintenance costs and power interruptions, increase the reliability, safety and quality of power supply for consumers, alongside distribution capacities, and improve environmental protection.
Be the first one to comment on this article.