Elektromreza to borrow EUR 12 million from French Development Agency – State guaranteeing repayment

The Government of Serbia has submitted the Bill on the Confirmation of the Payment Guarantee Agreement between the Republic of Serbia and the French Development Agency (AFD), by which the state guarantees a loan of up to EUR 12 million intended for Elektromreza Srbije (EMS), to the Parliament for adoption. The funds will be used for the reconstruction of the RP 110 kV Pancevo 1 switchyard and its full digitalization.

The project involves the introduction of modern digital technologies, technological separation of the facility from the TS Azotara substation and the application of international standards IEC61850 for management and communication in the system. The goal, as stated, is for Pancevo 1 to become the first fully digital pilot substation in Serbia, which will serve as a model for further implementation throughout the network.

The value of the equipment is estimated at EUR 7.3 million, project management is EUR 1.95 million, while construction works will cost EUR 1.05 million. EUR 1.7 million has been set aside for unforeseen expenses.

The AFD loan has been approved for 15 years, with a five-year grace period. Repayment will be made in 20 equal semi-annual installments, starting from February 2030. The interest rate is variable (EURIBOR + 0.97 p.p.), with the possibility of conversion to a fixed rate.

I. Z.

Vlada Republike Srbije

EMS ad Beograd

French Development Agency AFD

Bill on the Confirmation of the Payment Guarantee Agreement between the Republic of Serbia and the French Development Agency AFD