Serbia: A grant for Trans-Balkan Corridor project

, News Serbia Energy

For the construction of a third phase of Trans-Balkan Corridor, Serbian electricity transmission system operator EMS has received a grant in the amount of 12.8 million euros from the Western Balkans Investment Framework (WBIF). The grant will be provided by German KfW Bank.

After the signing ceremony, Serbian Minister of Energy and Mining Zorana Mihajlovic said that Trans-Balkan Corridor is a regional project of strategic importance, which boosts stability for electricity market not only in Serbia, but also in Romania, Montenegro and Italy. The total cost of the project’s construction is 157 million euros and its full length is 321 kilometers. So far, the first phase of the project, connecting Pancevo and Romanian border, has been completed. In other news, the Parliamentary Financial Committee adopted the draft law on providing guarantees to the German Development Bank (KfW) for the 40 million euros loan taken by EMS for the purpose of the construction of the Serbian section of Trans-Balkan Corridor. The loan is intended for financing the construction of Obrenovac-Bajina Basta section and the upgrade of Bajina Basta substation to 400 kV, which represents the third phase of the Trans-Balkan Corridor project. Last June, EMS started the construction of a 400 kV Kragujevac-Kraljevo overhead transmission line. This 60 kilometers-long line is part of the second phase of the Trans-Balkan Electricity Corridor project on Serbian territory. Total investment in the second phase of the project should amount to 29.6 million euros, which includes the reconstruction of two substations in Kragujevac and Kraljevo. The construction is expected to be completed in early 2021. The first phase of the Trans-Balkan project in Serbia included the construction of a double-circuit 400 kV transmission line from Pancevo to Romanian border, which was completed in December 2017 and was entirely financed by EMS. The third phase envisages the construction of a 109 kilometers-long 400 kV transmission line from Bajina Basta to Obrenovac, the upgrade of Bajina Basta substation’s capacity to 400 kV, and the overhaul of the Obrenovac substation. The fourth phase will include the construction of 400 kV transmission line linking Bajina Basta to Bosnia and Herzegovina and Montenegro. The entire Trans-Balkan Electricity Corridor, linking Montenegro, Bosnia and Herzegovina, Serbia and Romania via a 400 kV transmission line and Montenegro and Italy via an undersea cable, is expected to be operational in 2022.