Elektrodistribucija to Take Out Loan of EUR 50 Million for Grid Upgrade

Elektrodistribucija Srbije (EDS) has taken out a loan of EUR 50 million from two commercial banks, and the proceeds are planned to be used for the upgrading of the distribution network.

The Draft Law on the Providing of a Guarantee of the Republic of Serbia on behalf of OTP Bank and Banca Intesa, based on the loan taken out by EDS, says that the state has taken on the obligation as the guarantor to meet the obligations of EDS based on the loan agreements with OTP Bank (EUR 40 million) and Banca Intesa (EUR 10 million). The loan agreements, as said, were signed this May.

The proceeds from the loan will be used for the upgrading of the distribution network, and this project entails the replacement of the wooden columns on the existing low-voltage grids and the installation of concrete ones, as well as the replacement of non-insulated conductors with stay wires and the adaptation of the home connections.

According to the draft law, the technical documentation has been prepared for part of the planned works.

– The biggest length of the low-voltage network on the wooden columns is in the distribution areas of Kraljevo, Nis and Kragujevac, which is why the works are planned in these three distribution areas. The estimate of the unit prices of the works and the necessary materials has been done per kilometer, based on the analysis of the prices of the similar projects which have been realized previously, and it amounts to around RSD 3,540,000 per grid kilometer (around EUR 30,000 per grid kilometer). This estimate pertains to the grid where the full reconstruction is to be done, including the replacement of all the columns and conductors with the equipment. There are sections of the low-voltage network planned for reconstruction, where there are already concrete columns, which are to be kept, and the conductor with the equipment is to be changed. The total estimated value of the works is RSD 5,898,213,895 (that is, EUR 49,984,864) – says the draft law.

The planned time for the completion of all the planned works is one year, with the condition of a timely delivery of the necessary materials and weather conditions.

The loan agreements envisage a loan period of seven years, including a grace period of three years and the withdrawal of funds in one or more tranches. Also, a three-month loan repayment is planned, and the interest rate is 4.94%, that is 4.95% on an annual level + 6M EURIBOR.

I. Z.

Elektrodistribucija Srbije d.o.o.

Vlada Republike Srbije

OTP banka Srbija a.d. Novi Sad

Banca Intesa a.d. Beograd

Elektrodistribucija Srbije

Government of Serbia

OTP Bank

Banca Intesa

upgrade of distribution network

replacement of wooden columns on existing low voltage grids

wooden columns

replacement of wooden columns