Through Public-Private Partnership to New Biomass Furnace in Gornji Milanovac

In cooperation with the Office for Public Investment Management, the Municipality of Gornji Milanovac has come up with the best model of having a biomass and gas-powered furnace built as soon as possible, these two energy sources being environmentally friendly.

– With this decision, we will enter the procedure of the establishment of a public-private partnership and the selection of a private partner – says Dejan Kovacevic, the president of the municipality, adding that the municipality will provide land and that the private investor will be obliged to build a facility from which heating energy will be delivered to the Public Utility enterprise.

– Our goal is to reduce the current costs toward the PUE through the purchase of heating, instead of production, and to transfer this model to the end-users as well, because everyone should benefit from the PPP. When the whole procedure is finalized, meaning public contests, procurement procedures, the Government of Serbia's approval of the PPP model, it's a long road to the realization. We will probably wait until mid-2021, but we've made the first step – Kovacevic points out.

According to Kovacevic, the Municipality of Gornji Milanovac is considered a pilot project, and if it proves to be the simplest way of having ecologically acceptable heating, this model will be implemented in other territories of the Republic of Serbia.

– I must note that the Office for Public Investment Management will finance all the heating pipelines that need to be reconstructed in the municipality's territory and also the heating pipeline which connects the new furnace with the existing one in Zeleznicka Street. The total value of the works is around EUR 2 million, and the construction will cost 4.5 to 5 million euros, where we will negotiate the price of energy sources for the entire period in advance – the president of the municipality emphasizes.

This solution will benefit the Municipality of Gornji Milanovac as a partner, but also the citizens and the private investor.

– Our goal is to improve the ecology in Gornji Milanovac, to close the mazut-based furnaces. We will get cleaner fuel, a lower price of energy sources and this will be reflected in the end-users' bills – Kovacevic said.

Ministarstvo za javna ulaganja Republike Srbije

Opština Gornji Milanovac

Office for Public Investment Management

Municipality of Gornji Milanovac

biomass furnace

biomass

Dejan Kovačević

Železnička Street