EPS: Emergency Power Sector Reconstruction Loan

complete

Proposed €100 million loan to Elektroprivreda Srbije to finance emergency rehabilitation and upgrades to thermal and hydro-generation plants, and to rehabilitate and upgrade transmission system. The project aims to finance emergency rehabilitation and upgrades to thermal and hydro-generation plants, and to rehabilitate and upgrade the transmission system. The project would support the stabilisation of the electricity sector by improving reliability and increasing generation capacity as well as strengthening institutional and sector management. Elektroprivreda Sribje (EPS) is a public enterprise of the Government of the Republic of Serbia. It is structured as a holding company with 24 operational subsidiary enterprises engaged in power generation, transmission and distribution, power system management and coal production. EPS is responsible for 95 per cent of the total power generation in the country, and with 63,000 employees, is the largest enterprise in the Federal Republic of Yugoslavia. The loan of €100 million would finance priority investments starting in 2001-02. Donor grant funds from the European Agency for Reconstruction (EAR) and the World Bank will finance emergency maintenance and repairs on a parallel basis. €100 million The EBRD's loan will be used for a number of rehabilitation/upgrade projects, including the overhaul of thermal and hydro-electric generation plants, the construction of new transmission sub-stations, upgrades to a transmission line and a new transmission line. Because of the variety of investments to be financed under this loan, a number of environmental issues need to be addressed. These include: The project aims to improve the reliability and efficiency of the power system and will provide an opportunity to replace old equipment with more efficient technology, reducing losses and potential environmental impact (air emissions, oil leakages and spillages from sub-stations etc.). The project requires an Initial Environmental Examination (IEE) prior to allocating a screening category (or different categories for individual components). None.