Entire project totals EUR 27 m, EUR 20 m is KfW loan while the Government of Switzerland will provide grant totalling EUR 5 m and German Development , while the Government of Switzerland will provide grant of EUR 5 m and German Development Bank – EUR 2 m.
This refers to heat plants in Mali Zvornik, Nova Varos, Novi Pazar, Prijepolje, Bajina Basta, Valjevo Priboj, Kladovo, Majdanpek and Becej, which will in the future use biomass instead of fossil fuels.
According to minister Antic, loan is very favourable, with fixed interest rate of 1,1%, with a 5-year grace period and 10 year of maturity.
Antic added that loan will be repaid by local governances from savings generated in the biomass usage instead of fossil fuels.
Agreements were signed within "Supporting renewable energy – biomass market development in Serbia" project which, as minister outlined, is extremely important for entire energy system.
Ambassadors of Germany and Sweden Axel Ditmann and Filip Ge attended agreement signing.