The World Bank Board of Executive Directors approved USD 600 million for Serbia’s Gas Sector Development Program.
The first phase of the Gas Sector Development Program amounts to EUR 170 million (USD 195.5 million) in financing to improve the security and reliability of gas supply in the country, starting with the Trupale-Pojate gas transmission pipeline and enabling organizational, institutional, and technical capacity building, the World Bank said.
The program is designed to improve the security, reliability, and resilience of energy supply in Serbia through investments in critical gas infrastructure, sector reforms, and institutional strengthening, the bank added.
It will be implemented over a 10-year period using the Multiphase Programmatic Approach (MPA) and is expected to bring in other development partners and the private sector.
The program aims to address key bottlenecks in gas transmission
The program aims to address key bottlenecks in gas transmission and enhance underground gas storage infrastructure, strengthen governance, and advance regulatory and planning frameworks as part of the World Bank Group’s support toward a resilient and reliable system aligned with Serbia’s energy development plan and future European Union accession goals, according to the bank.
“Natural gas plays an important transition role as Serbia reduces reliance on coal and oil products and increases the use of alternative energy sources including renewables,’’ said Aisha Williams, World Bank Group Country Manager for Serbia.
The primary beneficiaries of this program include households, businesses, industrial consumers and district heating companies countrywide. Improved energy security will support economic growth, the private sector, and jobs, she explained.
Đedović Handanović: Natural gas serves as a transition fuel
Acting Minister of Mining and Energy Dubravka Đedović Handanović said that a EUR 175 million World Bank loan has been approved for the first phase of construction of gas infrastructure in Serbia.
In a post on Instagram, she noted that the project includes the construction of the first section of the Niš–Velika Plana gas pipeline, removes existing bottlenecks, and enables access to gas from diverse supply routes. It will also upgrade the transmission network and strengthen the security and resilience of natural gas supply, she added.
She stressed that energy security and the green transition go hand in hand, while gas serves as a transition fuel.
