State guaranteeing EPS credit for construction of Kostolac wind farm – Loan from Germans worth EUR 30 million

The Republic of Serbia assumes the obligation to settle the obligations of Elektroprivreda Srbije as per the borrowing from the German development bank KfW in the amount of up to EUR 30 million, and the money will be used for the Kostolac wind farm, as stipulated in the Bill on the Provision of Guarantees, which was adopted by the Government at the most recent session.

This loan agreement was concluded on September 27 last year.

– In order to secure the loan, according to KfW’s standard conditions, it is necessary that the Republic of Serbia, as a means of security, issues a payment guarantee to KfW in which it, as a guarantor, undertakes to compensate KfW for all amounts that are due for collection based on the loan agreement signed by EPS and KfW in the event that EPS is unable to fulfill its payment obligations on the maturity date and pay the money to KfW in accordance with the repayment plan – it is stated in explanation of the law.

For the credit financing of the project, a loan of up to EUR 30 million has been proposed, in accordance with the budgets of Serbia for 2024 and 2025. The loan will be available until April 30, 2026, and repayment will begin on November 15, 2029 and last until November 15, 2039. The interest rate is fixed and amounts to 3.15% per year.

Vlada Republike Srbije

KfW kancelarija Beograd

Elektroprivreda Srbije ad Beograd

Government of Serbia

German Development Bank KfW

Elektroprivreda Srbije

Kostolac wind farm

Western Balkans Investment Framework

Kostolac wind farm construction