Serbia: A loan of 193 million euros has been secured for the construction of the Obrenovac – New Belgrade district heating system

, News Serbia Energy

The project for construction of the TENT Obrenovac – New Belgrade thermal power line is worth 193 million euros, said Deputy Mayor Goran Vesic after the end of the City Assembly session and adoption of information on the implementation of this project.

– This is a project aimed at using hot water, which is a by-product of the Obrenovac thermal power plant, to heat Belgrade. With the Government of the Republic of Serbia, we secured a loan worth 193 million euros. Belgrade Power Plants will pay 15% and the rest of the money will be provided by the Government of Serbia. The land expropriation has begun and is expected to be completed in September, when construction entrusted to China’s PowerChina is scheduled to begin. The heat transmission line is expected to be completed in two years – Vesic said and Beoinfo reports.

This practically means, he said, that this year we will spend 4.4 billion dinars for gas, and when the heat pipeline is completed, the city will buy gas for about two billion dinars less.

– The savings will therefore be around 16 million euros annually. When the effects of the Konjarnik-Vinca heat transmission line are added to this, which will save about 2 million euros a year, that means that between 18 and 19 million euros will be total savings – said Vesic.

Vesic expressed his expectations that the City of Belgrade will pay for the 12-year thermal transmission project from Obrenovac to New Belgrade; more precisely, the project will be fully reimbursed for this period of time, and after that it will be net profit. The deputy mayor also announced that all these were the reasons why the price of heating could be reduced in three years.