Rehabilitation and modernisation of heating plants

Today, the President of the Government of Serbia, Mirko Cvetković handed the Contracts to the representatives of 18 cities and municipalities, including the City of Zrenjanin, regarding the  beginning of the implementation of distant heating system, which is done in the cooperation  with the Government of  Germany.
On the behalf of the City of Zrenjanin the contracts were signed by the Mayor of Zrenjanin,  dr Mileta Mihjalov and  Director of "Gradska toplana" /City Heating Plant/, Vladimir Tešić.
- Two years ago the City of Zrenjanin invested significant funds into a new boiler room which  provided the heating for all  our citizens. The signing of this Loan Contract means a step further, i.e. the reconstruction of the main heating pipeline which is to start the next year and it is expected to be finished in a year or two which will ensure the proper heating for all  customers in the next thirty years – said Mihajlov.
Tešić reminded that the third phase of the Project meant the finishing of the boiler room and that the next step was a part of the distribution system of distant heating.
-The boiler room has already proved to be a justified investment since the costs are  significantly  lower. In the fourth phase, the distribution system will be reconstructed,  which is necessary  since the loss in that  system is 40 %, i.e. two million m3 of gas that does not reach flats. The funds we get from KfW, as favourable credit funding will be spent on the reconstruction of the main heating pipeline and maintaining of the most damaged points – explained Tešić.
At the ceremony in the Government of Serbia, Cvetković said that the programme, funded by the governments of Serbia and Germany and KfW with 56.25 million Euro, includes 20 municipalities and cities, adding that Niš and Kraljevo  will be included once they reached the necessary Decisions.
The Serbian Prime Minister informed that German Development Bank (KfW) provided the 47 million Euro loan for heating plant reconstruction, and the Government of Serbia 9.25 million Euro.
He  emphasised that the  terms of the loan are favourable and 2.5% annual interest rate is fixed, it is a 12-year loan with a  grace period of 4 years. Favourable interests, as said, were the result of the Government of Germany, since it  provided the guaranty for the loan.

The Contracts, according to which 51 million Euro was transferred to local  governments, were  received today by the representatives of Novi Sad, Subotica, Kragujevac, Šabac, Čačak, Valjevo, Kruševac, Pirot, Bor, Leskovac, Trstenik, Jagodina, Novi Pazar, Knjaževac, Ruma, Bačka Palanka and Negotin.
Cvetković pointed out that the result of the Project would be a million citizens of Serbia who would get improved  heating. After the finishing of the fourth phase the problem of technical capacity of heating plants will be solved, emission of polluting gases lowered as well as loss of  heating energy. The value of these three phases is estimated to 63 million Euro.
Vice Ambassador of Germany in Serbia, Hans Ulrich Suedbeck commended this, as he said, a good example of a successful cooperation.
Director of KfW Office, Juergen Welsch, reminded that the Contract for the fourth phase of this Project was signed by the Government of Serbian and the Bank in September 2011.
As he reported, engineers have been working on plan preparations, procurement will be opened in automn, and the works on distant heating system will start the next spring.