Serbia: EBRD loans to be finally used for EPS electricity production improvements

18. July 2013. / News Serbia Energy

In  2010.  and 2011. “Electric Power Industry of Serbia” took five loans worth 275 million euros to increase the electricity production and effiency, but so far only 1.5 million euros have been used .The economy eager of loans and state-owned companies do not even use those who have been approved to them. “Electric Power Industry of Serbia” did not pull approved loans, worth 275 million euros, which could use to increase power production, reduce losses and employment of domestic companies.

The smart meters are not replaced

The most obvious example are two EBRD loans for the smart meters. First, worth 40 million euros, was approved in september 2010, and just a million euros was used by the end of last year, and another of 45 million euros was approved in november 2011.  and so far only 450,000 euros was spent.

– Replace of the meters is most profitable business in the EPS because it would reduce electricity losses and bring more incomes, it would be paid off very quickly. Part of the job also could gain domestic and foreign companies.

EPS has not arrived yet to take advantage of 70 million euros of KfW Bank for HPP “Zvornik” modernization and 80 million for excavator purchase for “Kolubara”.

Negotiations with creditors

In the EPS say that all current loans are found and that they were contracted by previous management.

– These projects are generally placed on wrong foundations, and credits were taken without realistic goals, and the necessary cost-benefit analysis. New management does not want to spend a single Dinar not to mention million euros for loans and projects that were initially badly designed and can cause damage to several hundred million euros.

That is why in record time, we started to negotiate with financial institutions that have approved loans in order to complete the necessary documentation and projects set up to benefit the citizens and EPS – listed in the EPS.

Tender for the meters, they claim, will be published in the autumn, and credit for small hydropower plants (SHP) was canceled before the documents were ready. Money withdrawal for excavator in “Kolubara” goes according to plan, added, and contract signing for HPP  “Zvornik”  is expected in late august.

Source; Kurir daily/Serbia Energy

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