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Press Releases

November 24, 2011

Signing of Japanese ODA Loan with the Republic of Serbia
–First Japanese ODA Loan for Serbia Aims for Environmental Improvements through Construction of a Flue Gas Desulphurization Plant–

PhotoThe signing ceremony was attended, from left, by Mr. Tsunozaki, ambassador to Serbia; Mr. Kurosawa, Chief Representative, JICA Balkan Office; Mr. Marković, General Manager, Public Enterprise Electric Power Industry of Serbia; Mr. Djelic, Deputy Prime Minister of Serbia.

1. Today, the Japan International Cooperation Agency (JICA) signed a Japanese ODA loan agreement with the Public Enterprise Electric Power Industry of Serbia in Belgrade, the capital of the Republic of Serbia, to provide a loan of up to 28.252 billion yen for assistance for the "Flue Gas Desulphurization Construction Project for Thermal Power Plant Nikola Tesla." The present project is the first Japanese ODA loan for the Republic of Serbia and the Republic of Serbia is the 105th country to receive a Japanese ODA loan.

2. The present project will construct the first flue gas desulphurization plant at the thermal power plant Nikola Tesla A in the Republic of Serbia, decreasing sulphur dioxide (SO2) and dust, which are air pollutants, improving the environment in the Republic of Serbia, and contributing toward the attainment of EU environmental standards, in consideration of the Republic of Serbia joining the EU in the future. The loan funds for this project will be allocated to the construction of the flue gas desulphurization plant and consulting services (including tender assistance and construction monitoring).

3. The thermal power plant Nikola Tesla A, where the project is implemented, is the largest in the country, providing 25% (2009) of the electric power, and it is indispensable for a stable power supply in the Republic of Serbia. However, the domestic coal that is the fuel is low-grade with high sulfur and ash content, and environmental equipment has not yet been installed. Therefore the volume of emissions of air pollutants–sulphur dioxide and dust–exceed the domestic environmental standards (400 mg/Nm3 for SO2 and 50 mg/Nm3 for dust), and there are concerns of the adverse effects on the environment. In 2006, the Republic of Serbia joined the Southeast Europe Energy Community, and is obliged to lower SO2 and dust emissions from thermal power stations down to the level of new EU standards. The Republic of Serbia's target of achieving the standards is the end of 2017, and taking measures to decrease air pollutants at thermal power stations is an urgent issue also from the standpoint of a stable supply of electric power.

4. The flue gas desulphurization plant to be constructed in the present project will make it possible to greatly improve air pollution and will be the first built in the Republic of Serbia. Not only will implementation of the present project transfer expertise in areas such as SO2 reduction and environmental monitoring, but as a model case, the project is expected to have a ripple effect on other thermal power stations in the country.

Reference

1. Terms and Amounts of Loan

Project titleAmount (million yen) Annual interest rate (%)Repayment (years)Deferment period (years)Procurement
ProjectConsulting services
The Flue Gas Desulphurization Construction Project for Thermal Power Plant Nikola Tesla28,2520.60.01155General untied

2. Project Summaries

The Flue Gas Desulphurization Construction Project for Thermal Power Plant Nikola Tesla

Executing Agency

Public Enterprise Electric Power Industry of Serbia
Address: Vojvode Stepe 412, 11000, Belgrade, Serbia
Phone: +381 (11) 3973-013
Fax: +381 (11) 3974-095

Planned Implementation Schedule

  • (i) Completion of project: June 2017 – when the facilities are put into service
  • (ii) Issuing of letters of invitation for consulting services (including construction supervision): August 2011 (Already sent)
  • (iii) Tender announcement of initial procurement package for international competitive bidding on project construction: Construction of flue gas desulphurization plant
    Release date: August 2012

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