Serbia borrows EUR 50 million from EBRD for shutting down coal and mazut powered boiler houses

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EUR 50 million to Serbia for the decommissioning of environmentally harmful boiler houses in six self-governing municipalities and to enable investments in sustainable heat sources. The loan is being provided to Serbia’s Ministry of Finance and will be disbursed by the Ministry of Environmental Protection to public entities across the country, The Bank announced.

The projects will be implemented in Belgrade, Niš, Valjevo, Zaječar, Novi Pazar and Smederevo.

As well as supporting spending on heat pumps and industrial and urban-waste heat systems, the loan will facilitate connections to district heating networks where feasible, energy-efficiency retrofitting of buildings and the installation of thermostatic valves to reduce energy demand, the press release says.

It is added that the investment will enable significant reductions in emissions of CO2 and other harmful air pollutants such as sulfur dioxide, fine particulate matter, carbon monoxide and soot. It will also decrease Serbia’s reliance on imported energy sources, reduce overall energy costs and drive decarbonization of the building sector, while improving the sustainability and comfort of public buildings nationwide.

The investment was developed as part of the EBRD’s Renewable District Energy in the Western Balkans technical assistance program financed by the Austrian government, which promotes the use of renewable energy sources in district heating and cooling systems. The Swedish International Development Cooperation Agency also provided financial support for the project.

The loan agreement was signed by Siniša Mali, Serbia’s First Deputy Prime Minister and Minister of Finance, while the project agreement was signed by Sara Pavkov, Serbia’s Minister of Environmental Protection. Both agreements were signed by Matteo Colangeli, EBRD Regional Head of the Western Balkans, on behalf of the Bank.

EBRD Evropska banka za obnovu i razvoj Beograd

Ministarstvo finansija Republike Srbije

Ministarstvo zaštite životne sredine Republike Srbije

EBRD

Ministry of Finance of Serbia

Ministry of Environmental Protection of Serbia

Siniša Mali

Sara Pavkov

Mateo Colangeli

shutting down mazut boiler houses

loan

agreement