Energy Efficiency

Subotica decides not to withdraw part of KfW loan

Subotica

Published

July 14, 2016

Country

Comments

comments icon

0

Share

Published:

July 14, 2016

Country:

Comments:

comments icon

0

Share

At the local assembly meeting the City of Subotica approved the proposal by public heating utility JKP Subotička toplana not to withdraw EUR 1.7 million, part of a loan provided by KfW Development Bank, portal Subotica.com reported.

The package worth EUR 4.5 million for the heating plant was agreed on in 2012 with the assistance of the Government of Serbia. The loan was intended for the reconstruction of main hot water pipelines, upgrading substations and the system for measuring and monitoring industrial systems (Scada), and the construction of a cogeneration system within the General Hospital.

Heating plant operator JKP Subotička toplana gave up on the financing package that will be redirected to a unit in Belgrade.

According to the explanation of the city parliament’s decision, Subotička toplana has used the loan in the amount of EUR 2.8 million and it is reconstructing the network. Works on the improvement of substations are included in the refurbishment of 30 out of 94 units. However, the idea to improve Scada and to construct a combined heat and power plant in the hospital proved unprofitable after detailed economic analysis, according to the article.

The special analysis for the generation unit led to the conclusion the investment value is increased by 100% compared to the estimated value, while for Scada system it was found that it would not be compatible with the existing software and hardware. The plant upgraded Scada using its own resources in a more favourable way, both in financial and technical terms, said the members of the assembly of Serbia’s northernmost city.

The consultants have proposed to abolish the project as the investment greatly exceeds the earmarked EUR 725,000, said Dervo Ahmetović, manager at Subotička toplana. In consultation with the Ministry of Finance, the money is not used, and it will be redirected to a heating plant in capital Belgrade, he added.

 

Related Articles

Cities are driving the transition to climate neutral and fair housing

Cities are driving the transition to climate neutral and fair housing

19 May 2025 - City governments are ready to lead the transition to climate-neutral buildings by 2050, but they cannot do it alone

serbia germany kfw heating plants renewables district heating konrad muler

Serbia to invest EUR 60 million in renewables in district heating

16 May 2025 - The Minister of Mining and Energy met with Ambassador Anke Konrad and KfW's Director for Southeast Europe and Turkey Klaus Müller

North Macedonia Law on Energy

North Macedonia adopts Law on Energy

15 May 2025 - With a majority of votes, 62 out of 120, the Assembly of North Macedonia adopted the Law on Energy, aligning the legal framework with the EU

croatia subsidies energy poverty fzoeu

Croatia sets EUR 25 million in incentives for energy poor households

22 April 2025 - Croatia has earmarked EUR 25 million for households at risk of energy poverty. They will use the funds for energy renovation