Proposed modernisation of equipment installed at the Tamnava West lignite mine and upgrade of the Power System Control and internal communications. Both components identified as priority investments by EPS.
Modernisation of mine management and control of existing Tamnava West mining field to increase lignite production. Upgrading of the power system control and communications in order to increase efficiency of power supply.
A cost-effective and reliable supply of fuel is key to the restoration of the backbone infrastructure required for further improvement of the power sector. The improved control and communications system is a pre-condition to Serbia’s full membership in the Union for the Coordination of Transmission of Electricity (UCTE) and is key to the regional network. Further the loan will be conditioned on overall sector reform as well as those specific to the mining and transmission sectors.
Elektroprivreda Srbije (EPS), the vertically integrated electricity utility for the Republic of Serbia responsible for 95% of the electricity generation in the FR Yugoslavia.
Long-term sovereign-guaranteed loan of €50 million for two components: a) €35 million for investment in lignite mines; b) €15 million for investment in the communications network.
Cofinancing for the communications network component from European Investment Bank (€25 million loan), and State Secretariat for Economic Affairs (SECO) (€10 million grant).
€60 million, including EPS contribution of €15 million.
The project consists of two components: a) investment in a lignite mine (for which a summary environmental analysis is annexed to this document) and b) investment in the communications system of EPS (which does not have a material environmental impact).
The European Agency for Reconstruction has provided TC funds for: a) Pre-feasibility study of the mining component; b) Feasibility study of the mining component; c) Environmental impact assessment of the lignite mines.
Further TC funds were provided by SEETEC and SECO (Feasibility study of communications component)
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