The construction of a new network of transmission lines, part of Section 3 of the Trans-Balkan electricity transmission corridor, was the subject of the agreement worth EUR12.8 million signed in Belgrade today.
The agreement was signed by Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović, Minister of European Integration Jadranka Joksimović, Director of Elektromreže Srbije Jelena Matejić and Director of KfW Bank in Serbia Rüdiger Hartmann. The signature ceremony was also attended by German Ambassador to Serbia Thomas Schieb.
The EU Delegation was represented by Head of Cooperation Yngve Engstrom. He said that the Western Balkans Investment Framework (WBIF), which combines funding from EU Member States, the EU, and international financial institutions, has thus far invested some EUR220 million in Serbia alone, noting that the total investment within the mechanism amounted to around EUR5.5 billion in the areas of transport, energy, environmental protection and digital infrastructure. “This mechanism can contribute a lot to the development of the entire region, including Serbia,” Engstrom added.
Deputy Prime Minister of Serbia and Minister of Mining and Energy Zorana Mihajlović noted that Serbia’s goal was to become a transit corridor for energy, just as it had become for transport. “Trans-Balkan Corridor is a regional project of strategic importance that brings stability in the electricity market, not only in Serbia, but in the wider region as well, in Romania, Montenegro, Italy. The construction of the Trans-Balkan Corridor in Serbia is worth EUR157 million, while its total length stands at 321 kilometres,” Mihajlović stressed.
Minister Joksimović described the construction of the corridor as an important step in the European integration reform process in Serbia and the region. Joksimović pointed out that this important project was the product of working together with European institutions, but also with our development partner in the sector of energy—Germany—through cooperation with KfW development Bank. “Each project we carry out using EU taxpayers’ money, combined with credit lines and our own budget, makes up an important segment of our energy system. Also, projects are now particularly important, having in mind the new, cluster methodology,” Joksimović explained.
The value of investment in Section 3 of the Trans-Balkan corridor amounts to EUR58.95 million and is being implemented thanks to a KfW loan worth EUR40 million, an investment grant worth EUR12.8 million obtained within the Western Balkans Investment Framework, whereas the remaining funds of EUR6.15 million are secured in the form of WBIF’s technical assistance and EMS contributions.