Source: Novosti | Monday, 30.05.2005.| 14:11
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Construction of city heating plant in Valjevo, building of municipal administration under mortgage for that purpose - €13m

Authorities in Valjevo firmly decided to have the construction of central city heating plant started. The initial works on this capital communal investment that will be located in so-called industrial zone will start in October 2005. Construction will last for at least 4 years, whereas the total value of this project is €13m. In order to obtain credit of €2,17m from European Investment Bank, approved with the help of Komercijalna banka, the building of the municipality will be given as security.

By the way, the sources for financing of this investment are the budget of Municipality of Valjevo (1.17), donations from the Agency for Infrastructure of RS (4.29) and credit line approved by European Investment Bank (€2.14m). The missing amount of €5.46m will be collected from the citizens through their payments for the connections, as well as from some other new credit line. Also, Valjevo counts on the donations, because the feasibility study showed that the construction of heating plant is very profitable investment.

By entering this investment Valjevo does not give up connection to gas system, first of all because the heating plant will have two energy sources, which are crude oil and gas.

Preliminary and main project for central city heating plant was elaborated by Belgrade-based «Mašinoprojekt». The tender for procurement of equipment from some of the countries of European Union will be soon announced. Over 50 small, but very old, boiler rooms are located in the south part of the city. During the winter months, thanks to these boiler rooms, Valjevo is among the first cities in Serbia in concentration of soot, smoke and other dangerous matters in the air. New heating plant will be capable of heating between 16 and 17 thousands apartments, houses and office spaces. Through several local banks, the citizens will be financially supported with good credit terms and repayment period of five and more years. As far as price of the connection is concerned, according to estimate designed by Public Utility Company «Valjevo» two years ago, the owner of apartments and private houses will have to pay 400 - 500 CSD per square meter, whereas the price for the owners of office spaces amounts to 800 CSD.

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