Serbia: Gazprombank to loan 140 million euros for CHPP Pancevo project

, News Serbia Energy

Russian Gazprombank will provide a 140 million euros loan to Serbian company TE-TO Pancevo for the project for the construction of 200 MW combined heat and power plant (CHPP) in Pancevo.

The statement from the bank said that it has already extended the first part of the financing for the project, which will be carried by Chinese company Shanghai Electric Group. Gazprombank is one of the leaders in the financing energy projects in Russia and the participation in crediting a large investment project in Serbia will expand the bank’s presence in the European market as well as strengthen the partnership with a strategic client.

In 2015, Serbian oil company NIS, majority owned by Russian GazpromNeft, has signed an agreement with Centroenergoholding, a part of Gazprom Group, on the establishment of joint company for the construction of thermal power plant near Pancevo. The contract, which was signed at the International Economic Forum in St. Petersburg, stipulates that the joint venture company will be registered under the name Serbskaja Generacija and it will develop the project of the construction of power plant with an output between 140 and 208 MW. Centroenergoholding will own 51 % stake in this joint venture, while NIS will own the remaining 49 %.

In October 2017, NIS signed an Engineering, Procurement and Construction (EPC) contract on a turnkey basis worth 180 million euros with Shanghai Electric Group. It is expected that the construction of CHPP Pancevo will start in the second half of 2018, while it should be commissioned by the end of 2019.

In March 2018, Italian company Ansaldo Energia said that it has been awarded a contract for the supply of gas turbines and generators for CHPP Pancevo. The contract awarded by Shanghai Electric Group is worth about 40 million euros. Ansaldo Energia will deliver two AE64.3A gas turbines, their WY18Z air-cooled generators and the relevant auxiliary systems.