EPS pays half a million EUR worth expenses for non-withdrawn credits from EBRD

, News Serbia Energy

Loans for installation of new electric meters and construction of small HPPs have not been used.

Elektroprivreda Srbije had to pay half a million EUR for not using approved credits of international financial institutions. 565.409 EUR- exactly. Considering the payment of Železnice Srbije to European Bank for Reconstruction and Development estimated to 2 million EUR approximately- this is 4 times less.

EPS paid 367.341 EUR for unused assets of European Bank for Reconstruction and Development credit expenses only, and 29.587 EUR for interest, it was confirmed from EPS.

Credit supposed to be used for supply and installation of electric smart meters. Contract for loan was concluded at the beginning of September 2010 and deadline for use is 2 September 2013 with possibility of deadline extension. Grace period is three years and deadline for credit repayment is 12 years.

Nevertheless, this is not the only debt EPS had to pay to EBRD. EPS should pay for penalty points, too.

45 million EUR worth contract was signed for construction of 7 new small HPPs and revitalization of 15 existing small HPPs. EPS paid 167.831 EUR still for unused assets plus 689 EUR of interest expenses.

It was necessary to provide the extensive project documentation, considering the large number of locations- it was stated in EPS, when they were asked why money isn’t used. Therefore, the first phase i.e. complete documentation provision is predicted to last longer than a phase of installation of required equipment and terrain work performance.

Although, contract for 40 million worth loan, planned for smart electric meters supply, was concluded with European Investment Bank three years ago, EPS hasn’t withdrawn a dinar for this purposes yet what could cost a lot.

Deadline for use of these assets is 30 Jun 2015 with possibility of extension. Repayment deadline is 12 years including the beginning period of 3 years. Assets are have not been used in accordance to contract yet, so EPS doesn’t have expenses, it was concluded in this company.

Source Serbia Energy/ Politika/Agencies/EPS