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Serbian Energy Ministry and German KfW sign contracts for district heating system renovation

On Thursday (31 August), Serbia’s Mining and Energy Ministry and German development bank KfW signed contractor agreements for the district heating system renovations in Nis, Leskovac and Negotin, as part of the fifth phase of the “rehabilitation of the district heating system in Serbia” project.

“The Ministry of Mining and Energy and the German Development Bank KfW continue their multi-year successful cooperation in implementing projects aimed at improving the district heating subsector in Serbia. To date, four phases of the project have been realised, modernising district heating systems in 22 heating plants in Serbia, with a total value of 130 million euros. The total value of the fifth phase of the project is 32 million euros, which will contribute to more efficient and stable heating while reducing emissions of harmful gases in seven cities and municipalities,” said Jovana Joksimović, Serbia’s Deputy Mining and Energy Minister for International Cooperation and European Integration.

The signed contracts include the renovation of existing capacities for thermal energy with an installed capacity of 128 MW in the “Krivi Vir” boiler house, the replacement of an old oil-fired boiler with a capacity of 6.5 MW with a new gas-fired boiler with a capacity of 10 MW in Leskovac, and the installation of a new boiler with a combined burner with a capacity of 8 MW in Negotin.

“It is crucial that we continue with the implementation of projects at the local level, benefiting both citizens and the environment, and I hope that we will rehabilitate and modernise district heating systems in other places in cooperation with our German partners,” the Deputy Minister added.

The contracts are valued at 3.97 million euros, co-financed from a loan from KfW, which also cover other heating plants that are part of the project.

Deputy Minister Joksimović added that the start and schedule of the renovation works will be more precisely determined by a dynamic plan, to be agreed upon between the heating plants and the contractors. “There is a possibility that some of the works that do not affect the system’s operation during the heating season will start in September of this year, while all other works will commence in May 2024 after the heating season ends. The completion of all works is planned by the end of next year,” she said.

“The rehabilitation of the boiler plants will guarantee a more reliable district heating system for the citizens of Niš, Leskovac, and Negotin. With improved equipment and maintenance, heating plants will have modernised heating facilities, which means improved efficiency, reduced emissions, and a positive impact on the environment. We look forward to continuing our long-term and successful cooperation with the Ministry and heating plants to improve the district heating system in the country and introduce renewable energy sources such as biomass and solar energy,” said Rüdiger Hartmann, Director of the KfW Office in Belgrade.

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