Energy: Belgrade signs MoU with Chinese company

The Serbian Ministry of Mining and Energy, the City of Belgrade and the Nikola Tesla Thermal Power Plant signed a Memorandum of Understanding stipulating construction of Obrenovac-Novi Beograd heat pipeline with the Chinese company, Power Construction Corporation of China.

The Minister of Mining and Energy, Aleksandar Antic said that using this heat pipeline, Serbia would save 43 million EUR annually on importing gas used by the Belgrade Heating Plants.

The minister added that the project was economically justifiable and very important since it would provide additional security in terms of energy supply. The next step is to negotiate with the Chinese companies about the loan and financing terms. When asked whether the Memorandum would be abandoned if the financing terms were not favourable, Antic answered positively.

The value of this project is estimated at 200 million EUR, and it is considered environmentally friendly.

– Considering that the project is supposed to substitute a third of the import of gas, a little over EUR 40 million, the project worth EUR 200 million would pay off in 5-6 years – Belgrade Mayor Sinisa Mali said and reminded that the Detailed Regulation Plan for the area had already been adopted.

The details of the cooperation are yet to be agreed, but it is expected that Chinese companies will be contractors and structural designers, whereas the realization would be financed by the Chinese government.

– We will talk to the Chinese about the need for the project to be commercial – Mali said and added that the position of Chinese companies was to do everything they can in cooperation with Serbian ones.

(N1, 07.06.2017)

http://rs.n1info.com/a274424/Biznis/Memorandum-o-toplovodu-Obrenovac-Novi-Beograd.html

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