First Construction and Supply Contract Signed for the EU-supported 2015 Connectivity Project in Serbia
With due regard to all the safety measures, the contract agreement for delivery of the equipment and the construction of the high-voltage transmission line from Kragujevac to Kraljevo was signed yesterday in Belgrade in the presence of the Minister of Energy and Mining Mr. Aleksandar Antic, the General Manager of ’Elektromreza Srbije’ (‘EMS JSC’) the public transmission system operator Mrs. Jelena Matejic and representative of the Contractors’ Consortium Mr. Mladen Zujkovic.
The signed agreement concerns the supply and construction of the 60-km long transmission line as a part of the EU-supported project Trans-Balkan Electricity Corridor: Grid Section in Serbia (Kragujevac – Kraljevo), a 2015 Connectivity Agenda project of a particular national and regional significance. In addition to the power line construction, the project will also include the upgrade of the substation (SS) Kraljevo 3 to 400kV voltage level as well as installation of a 400kV feeder bay to the substation 400/110kV Kragujevac 2. The power transmission corridor will enable a secure and stable power supply to the customers in Serbia and the neighbouring electricity markets.
The contract value (works and equipment) amounts to €13.5 million. The respective works are expected to start in 30 days. The total investment value of the 60-km long transmission line, including the works on the substations of Kragujevac and Kraljevo, is €29.6 million. The financing is secured through the Western Balkans Investment Framework (WBIF), namely a €6.5 million EU-grant, a €15 million loan by the KfW and a own-contribution over €8 million from ‘EMS JSC’.
These much-needed investments will replace the outdated network, which is prone to system failures and shows high operational and maintenance costs. Once complete, security of electricity supply will greatly improve for over one million residents of Zlatiborski, Moravicki, Rasinski, and Raski districts in Serbia. Moreover, the new transmission line is expected to reduce EMS’s network losses by approximately 10,800 MWh/year, equating to annual savings of around €540,000.
The Minister of Energy and Mining Mr. Aleksandar Antic stated: 'Today we signed the contract for the first infrastructure project after the state of emergency was introduced in Serbia. With this contract we are in the best way demonstrating that Serbia must continue with its strong development policy, even though we have been deploying all capacities and instruments of the state in the combat against the COVID-19 outbreak and for protection of the lives of our citizens.'
The EMS GM Mrs. Jelena Matejic stated: ’The transmission power line that we are building is of huge importance for the stability and security of power supply in central Serbia and being a part of the Trans-Balkan corridor, it is also of big regional significance, because it will be an important part of a single highway in this part of Europe.’
Trans-Balkan Power Corridor
This EU-supported project contributes to the establishment of the Trans-Balkan Power Corridor that will connect the electricity transmission systems from Serbia, Montenegro, Bosnia and Herzegovina to Croatia, Hungary, Romania, and Italy through 400 kV overhead lines and/or submarine cables. The first section concerns the construction of a double circuit 400kV transmission line from Pancevo to the Romanian border was completed in December 2017. The second section of this Trans-Balkan Corridor concerns the construction of the 60-km long transmission line from Kragujevac to Kraljevo and the upgrade of the SS Kraljevo 3 to 400kV voltage level as well as installation of a 400kV feeder bay to the substation 400/110kV Kragujevac 2. The third section, also supported by the European Union, includes construction of a double circuit 400kV transmission line from Bajina Basta to Obrenovac (109 km), an upgrade of SS Bajina Basta to 400kV voltage capacity, and the installation of two new feeder bays of 400kV in SS 400/220kV Obrenovac. The fourth section includes construction of a double 400kV transmission line from Bajina Basta to Visegrad and Pljevlja.
More about the project here.
More about Connectivity Agenda here.
More about the WBIF activities in Serbia here.