Serbia to borrow EUR 100 million for reconstruction of two hydro power plants

The Government of Serbia has adopted the Bill on Confirmation of the Financial Agreement EPS Green Financing A between the Republic of Serbia and the European Investment Bank (EIB), which envisages borrowing in the amount of EUR 100 million. This financial agreement was signed on December 27, 2024, in Belgrade and Luxembourg and refers to the improvement of hydropower capacities in Serbia through the revitalization of existing facilities. Funds from the contract will be used for the rehabilitation of the Bistrica hydro power plant - EUR 45.8 million and the revitalization of the Potpec hydro power plant with the construction of a fourth unit - EUR 54.2 million.

The loan repayment period is 25 years, and the projected time of the project’s realization is in the period from 2024 to 2030.

It is expected that the modernization will enable stable electricity production in the next 30 to 40 years.

The rehabilitation of the Bistrica hydro power plant, which was built in 1960 and has an installed power of 2 x 51.3 MW, involves the replacement of turbines, as well as other hydromechanical, electrical and mechanical equipment, which will improve the efficiency and reliability of the power plant’s operation.

The revitalization of the Potpec hydro power plant includes an increase in the installed power of the existing units from 3 x 18 MW to 3 x 20.5 MW, as well as the construction of a fourth unit with a power of 13 MW, which will contribute to an increase in annual production from 213 GWh to about 236.7 GWh.

The project includes the replacement of old equipment, construction works and improvement of the monitoring and management system.

I. Z.

Vlada Republike Srbije

Evropska investiciona banka EIB

Government of Serbia

European Investment Bank

EIB

Bill on Confirmation of the Financial Agreement EPS Green Financing A between the Republic of Serbia and the European Investment Bank

hydro power plant Bistrica

hydro power plant Potpec

rehabilitation of hydro power plant Bistrica

revitalization of hydro power plant Potpec