State to borrow EUR 50 million from EBRD to shut down boiler houses – Sustainable heating systems planned across Serbia, priority for six cities

The Government of Serbia has adopted the Draft Law on the Confirmation of the Loan Agreement between the Republic of Serbia and the European Bank for Reconstruction and Development (EBRD) for the implementation of the Air Quality Improvement Project, worth up to EUR 50 million.

The aim of the project is to shut down outdated boiler houses that use coal and heavy fuel oil, which are mainly located in public buildings in city centers and represent a significant source of harmful gas emissions. They will be replaced by sustainable heating systems such as heat pumps, biomass, industrial waste heat, as well as connections to the district heating network or gas pipeline network, where possible.

The project will include several local governments, and priority will be given to cities with recorded excesses in harmful gas emissions, including Belgrade, Nis, Valjevo, Zajecar, Novi Pazar and Smederevo. It is being implemented by the Ministry of Environmental Protection, which will establish a separate Project Implementation Unit.

The loan is approved for a repayment period until 2040, with a six-month EURIBOR increased by a margin of 1%. The first repayment deadline is scheduled for October 2029.

The project is expected to be completed by December 2029.

Vlada Republike Srbije

EBRD Evropska banka za obnovu i razvoj Beograd

Government of Serbia

European Bank for Reconstruction and Development

EBRD

Draft Law on the Confirmation of the Loan Agreement between the Republic of Serbia and the European Bank for Reconstruction and Development

Air Quality Improvement Project

shutting down outdated boiler houses