Serbian power system operator Elektromreza Srbije (EMS) signed an agreement with the Energy Ministry securing a 12.8 million euros EU grant for the construction of the Obrenovac-Bajina Basta power transmission line, part of the Trans-Balkan Electricity Corridor.
Energy Minister Zorana Mihajlovic emphasised that the construction of the Trans-Balkan Corridor is a strategically important investment not only for Serbia but also for the whole region. She added that the corridor also brings Serbia one step closer to become a key energy hub of this part of Europe.
The construction of the Obrenovac-Bajina Basta power transmission line represents the third phase of the Trans-Balkan Electricity Corridor project in Serbia and also involves the upgrade of Bajina Basta substation’s capacity to 400 kilovolts (kV) and the overhaul of the Obrenovac substation. The transmission line will be 109 kilometres in length and its construction will cost a total of 58.95 million euros.
The funds were secured through a 40 million euros loan from Germany’s KfW Development Bank and a grant from the Western Balkans Investment Framework (WBIF) of 12.8 million euros, while the remaining 6.15 million euros came through WBIF technical assistance and from EMS’s own funds.
Total investment in the construction of the 321 kilometres long section of the Trans-Balkan Corridor in Serbia is estimated at 157 million euros.
The first phase of the project in Serbia included the construction of a double-circuit 400 kV transmission line from Pancevo to the border with Romania, which was completed in December 2017 and was entirely financed by EMS, while the second phase, Kragujevac-Kraljevo, will be completed in 2021.
A fourth phase will include the construction of the 400 kV transmission line linking Bajina Basta to Bosnia’s Visegrad and Montenegro’s Pljevlja.
The Trans-Balkan Corridor is a significant project for the European Union and the region. It will ink Montenegro, Bosnia and Herzegovina, Serbia and Romania via a 400 kV overhead transmission line and Montenegro and Italy via an undersea cable, expected to become operational in 2022.