German KfW provided 45 million euros for heating plants in Serbia

- Heating plants in 18 cities and municipalities in Serbia will get a 45 million euros worth of aid from German development bank KfW within the scope of the "Remote Heating Rehabilitation in Serbia" programme - it was announced yesterday in the Government of Serbia.

The Memorandum of understanding for realization of the fourth phase of that programme has been signed by Serbian Minister of Energy Petar Skundric, State Secretary in the Ministry of Finance Slobodan Ilic, and Director of Serbia-based KfW office Jirgen Velshof.

Skundric said at the press conference in the Government of Serbia that, thanks to the approved 45 million euros, nine heating plants would get a favorable loan to repay it over the period of 12 years with the annual interest rate of 2%, while nine heating plants would get a non-refundable aid.

As he added, the Government of Serbia will subsidize the heating plants that get the aid from KfW with 9.25 million euros, which will be provided from the public debt of Serbia that has been written off by that bank.

The "Remote Heating Rehabilitation in Serbia" programme is financed by KfW since 2001. In the first and the second phase, total of EUR 17.7m was invested in heating plants in Belgrade, Nis and Novi Sad, while six cities and municipalities obtained an aid in the third phase in the form of a loan of 20 million euros from KfW and a subvention of 5.5 million euros from the republic budget.

Ilic pointed out that, by investing in renovation of heating plants, KfW helps enhancement of the quality of life of citizens in Serbia, and that programme will be completed within next four years.

Over the last ten years, Germany has provided an aid of 870 million euros for local self-governments, most of which went to the energy sector.

KfW, as Velshof explained, plans to help heating plants in Serbia make a new tariff system based on consumption, as well as apply energy-saving and environment-friendly technologies.