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EPS Liquidity Support



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

08 Feb 2023



PSD disclosed:

05 Dec 2022

Project Description

A sovereign guaranteed loan of up to EUR 300 million, composed of tranches of EUR 200 million and EUR 100 million, in favour of Javno preduzece "Elektroprivreda Srbije" Beograd ("EPS," or the "Company"), a fully state-owned power utility in Serbia. Loan proceeds will be used to support the Company's liquidity needs required to maintain stability of the national electricity sector.

Project Objectives

The proposed loan addresses an emergency liquidity gap by providing financial support to EPS, thus helping the Company manage an unprecedented spike in electricity import prices and operational difficulties.

EBRD loan proceeds are to be ring-fenced from the Company's fossil fuel assets.

The investment will include the development of a credible and tangible de-carbonisation strategy and action plan for the Company, including a coal phase out strategy by 2050, with the aim to help Serbia enhance its long-term security of power supply and create an enabling environment for the transition to clean energy.

The investment builds on the EBRD's long engagement with the Company and will provide a further push to the Company's prolonged corporate reform programme, with the aim to strengthen its corporate governance and management as well as build opportunities for re-skilling the workforce affected by the green economy transition.

Transition Impact

ETI score: 62

Transition impact will be derived from Resilient and Inclusive qualities.

Resilient: The Project will increase the resilience of the energy sector to systemic shocks and the ongoing electricity market crises.

Inclusive: The Project will enhance the capacity of EPS to actively contribute to a 'just' transition by promoting the reskilling of its workforce affected by the green economy transition and by strengthening its HR function.

Client Information


Name: Javno preduzece "Elektroprivreda Srbije" Beograd

EPS is a vertically integrated power and mining utility 100% owned by the Republic of Serbia. EPS' operations consist of the generation and supply of electricity. The Company usually provides around 90% of the entire domestic production.

EBRD Finance Summary

EUR 300,000,000.00

EUR 300,000,000

Total Project Cost

EUR 300,000,000.00

EUR 300,000,000


The Bank's additionality stems from:

  • offering financing at terms and conditions which are not available from commercial sources;
  • supporting EPS to enhance its climate corporate governance and develop a decarbonisation roadmap;
  • supporting the reskilling of EPS' workforce affected by the green economy transition;
  • helping the Company achieve higher gender inclusion standards.

Environmental and Social Summary

Categorised B (2019 Environmental and Social Policy). The liquidity support element of this transaction has limited direct environmental or social impacts and due diligence for this component will be carried out in-house via questionnaires and a review of reporting for previous EPS projects. EPS' environmental and social performance is well known to the Bank as, under the existing Environmental and Social Action Plan (ESAP), it is required to carry out three-yearly environmental and social audits of all its operations, with the next audits due in 2023. The majority of items under the existing ESAP have been implemented however some relating to the organisation of Environment, Health, and Safety management have been delayed by the lack of progress on the corporate restructuring of the Company. EPS faces significant environmental challenges, including issues related to air emissions, greenhouse gas emissions and occupational health and safety, largely linked to the age and condition of its plant and equipment.

EBRD will require EPS to develop and adopt a credible decarbonisation plan by the end of 2025 (to be aligned with Serbia's National Energy and Climate Plans (NECP) and national strategic documents), which will include targets and key performance indicators with specific timeframes, including a coal phase out strategy by 2050. The strategy should include tangible actions, clear timelines and an indication of funding sources and affordability. The transaction does not invest in fossil-fuel related physical assets (capex), and is expected to be consistent with the Nationally Determined Contributions (NDC) based on the requirement of the EPS decarbonisation strategy being in line with national ambitions. EBRD loan proceeds are to be ring-fenced from fossil fuel assets and operations. The adaptation assessment will look at climate risk at major asset locations, as EPS has been exposed to significant flooding events, and reduced hydrological availability in the past.

EBRD will prepare an updated ESAP, to be agreed with the Company. EPS will also prepare and disclose a non-technical summary that includes detail of the transaction and summarises

Technical Cooperation and Grant Financing

Technical assistance will be provided for the purposes of:

  1. Supporting the preparation of a de-carbonisation strategy and action plan, aligned with the National Energy and Climate Plan and other strategic documents, that would ensure security of supply and facilitate green energy sector transition;
  2. Helping with the implementation of climate risk reporting in accordance with recommendations of the Task Force on Climate-related Financial Disclosures;
  3. Supporting the design of a Corporate Development Programme in line with the company reforms commitment;
  4. Addressing human capital challenges.

Company Contact Information

Javno preduzece "Elektroprivreda Srbije" Beograd
Balkanska 13 11000 Beograd

Implementation summary

PSD last updated

10 Feb 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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