Electric Power Company of Serbia and Italian Seci signed contract on investments worth about 285 million euros

4. July 2010. / Uncategorized

The management of the Electric Power Company of Serbia (EPS) and Italian company Seci Energia have signed a contract on setting up a joint company Ibar Hydroelectric Powerplants Kraljevo, which will build hydroelectric power plants on the Ibar river. Total value of this investment is about 285 million euros.

That company will construct ten power plants on the Ibar river with total power of 103 MW, which will be producing around 420 million kilowatt hours of electricity a year. That will mark the beginning of the implementation of a protocol on cooperation in the energy sector between Serbia and Italy.

The contract was signed by EPS Director General Dragomir Markovic and Gaetano Maccaferri, President of the Gruppo Industriale Maccaferri, a part of which is Seci Energia.

As it was announced after the signing, it is expected that the foundation stone for the first hydroelectric power plant will be laid next year.

Markovic said he expected very positive commercial effects of that contract and added that that was the first contract signed by EPS as a market-oriented and profitable company.

According to some earlier announcements, after the investment in the project pays off, a joint decision should be made on further placement of electricity. The Italian company will have 51% share in the joint venture, while remaining 49% will be in the possession of EPS. Seci will also provide all the money for investments.

EPS Director General also said that they had expected the protests of environmental organizations because all big energy projects were under such pressure in that phase of realization. He added that the Study on Influence on Environment was under preparation and that it should prove that there would be no negative effects.

Serbian Minister of Energy and Mining Petar Skundric said that the project was only 20% of what was to be realised between Serbia and Italy in that sector.

He added that joint projects on the mid-flow of the Drina river were also planned in cooperation with the Republic of Srpska, as well as the projects related to renewable energy sources.

The Minister said that the contract with the Italian company was the first project of the kind in the region and that several other countries would participate in the future phases of realization.

According to him, the contract should also benefit local communities.

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