EBRD Mulls Loan of up to 18.5 Mln Euro for Novi Sad District Heating Project

BELGRADE (Serbia), January 10 (SeeNews) – The European Bank for Reconstruction and Development said on Monday it is considering lending up to 18.5 million euro ($23.9 million) for the upgrade of the district heating system in Novi Sad, in northern Serbia.

The loan would focus on energy efficiency and tariff reform based on measured consumption at individual user levels, the European Bank for Reconstruction and Development (EBRD) said in a statement.

The total project cost is estimated at 20.6 million euro, the statement said.

Overall the prospective project will contain three components: modernisation of substations; a biomass pilot project; installation of heat cost allocators and thermostatic radiator valves in pilot buildings.

The loan is pending a board review on March 15.

If the project is carried out, Novi Sad would be the first town in Serbia to fully implement a system allowing consumers to control their consumption of heat.

Furthermore, the project of a new biomass-fired heating will serve as a pilot and demonstration project showing a way forward for the introduction of alternative fuels in the region and less dependency on imported, fossil gas, the statement added.

($=0.7732 euro)

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