EPS to borrow EUR 67 million for reconstruction of Vlasinske HPPs – State guaranteeing repayment

The Republic of Serbia and the European Bank for Reconstruction and Development (EBRD) have signed an agreement on a guarantee for a loan of EUR 67 million which will be used to finance the revitalization of the Vlasinske Hydro Power Plants. The Law on Confirming the Guarantee Agreement EPS Revitalization of the Vlasinske HPPs between the Republic of Serbia and the EBRD was adopted by the members of the government at the latest session.

The loan is available for a period of five years, during which the beneficiary can withdraw the funds. The repayment of the loan begins four years from the signing of the agreement. Loan repayment lasts 11 years and is done in 22 equal semi-annual installments, which are paid on April 30 and October 30 each year.

The total value of the project amounts to EUR 82.43 million, and an additional EUR 15.4 million will be used from the grant of the European Union (EU), through the Western Balkans Investment Framework (WBIF), approved in December 2022.

The works are planned to be completed by the end of 2027.

The aim of the project is an all-encompassing reconstruction and modernization of the facilities HPPs Vrla 1-4. In addition to the renewal of the equipment, the reconstruction should also contribute to an increase of the installed power by 8 MW, an increase of the reliability and the annual production of electrical energy.

The Vlasinske HPPs belong to the group of the oldest hydro power plants within EPS, with an installed power of 128 MW.

Due to the long period of exploitation and the broken equipment, the cascade currently has a power of merely 60-80 MW.

Through this project, as said on the EU for You portal, all the production generators, electrical-mechanical and hydro-mechanical systems and control equipment will be replaced. These investments will enable a reliable and secure operations of the cascade in the next 30 years, with a power of 136 MW.

I. Z.

Vlada Republike Srbije

EBRD Evropska banka za obnovu i razvoj Beograd

Elektroprivreda Srbije ad Beograd

Government of Serbia

European Bank for Reconstruction and Development

EBRD

EPS

Vlasinske Hydro Power Plants

Vlasinske HPPs

HPP Vlasina

reconstruction of Vlasinske HPPs

renewal of Vlasinske HPPs

revitalization of Vlasinske HPPs

HPP Vrla 1

Bitvrđa Surdulica

HPP Vrla 1 Bitvrđa

HPP Vrla 2

HPP Vrla 3

HPP Vrla 4

production of electricity

overhaul of Vlasinske HPPs

turbines

generators