State provides guarantees for credits worth EUR 60 million – National Assembly adopts laws on KfW loans to EPS and EMS

Members of the National Assembly of Serbia adopted the Law on granting guarantees of the Republic of Serbia in favor of the German Development Bank KfW for the loan to Elektroprivreda Srbije (EPS), as well as the law granting guarantees for KfW loans to Elektromreze Srbije (EMS), on Tuesday, May 23, 2017.

Serbia will guarantee for the loan of EUR 45 million provided by KfW to EPS, meant for modernizing the ash disposal system of the Nikola Tesla A thermal power plant (TE Nikola Tesla A), and the money for the repayment of the loan will be secured from EPS' own revenues. The loan agreement was signed by EPS and KfW in late February 2017, and the granting of state guarantees for the loan has been planned by Serbia's 2017 budget.

The project of modernizing the ash disposal system in TE Nikola Tesla A aims to reconstruct the ash and slag collection, transport and disposal system in the biggest thermal power plant in Serbia, as well as to enhance environmental protection. EPS will be repaying the KfW loan over a period of 12 years, including the five-year grace period, and the final installment for the principal amount is due in 2028, at the fixed annual interest rate of 0.8%.

Regulations for granting guarantees to KfW for a EUR 15 million loan meant for EMS were also adopted. The loan will be used for energy efficiency in the transport system, will be repaid at the fixed annual interest rate of 0.8% over a period of 12 years, including the grace period of three years. The final installment for the principal amount is due on June 30, 2029.

Elektroprivreda Srbije ad Beograd

EMS ad Beograd

Narodna skupština Republike Srbije

KfW kancelarija Beograd

EPS

EMS

KfW

German Development Bank

guarantees for KfW loan to EPS

guarantees for KfW loan to EMS

ash disposal at TE Nikola Tesla A

TE Nikola Tesla A