Serbia to guarantee € 169 million in loans to Srbijagas for gas network expansion
BELGRADE (Serbia), May 26 (SeeNews) – The Serbian government plans to issue guarantees on loans worth a total of 169 million euros ($ 207 million) granted to the state monopoly Srbijagas for the extension of the gas distribution network in the country, It said.
The government plans to issue state guarantees on loans of € 75m provided by Banca Intesa, as well as loans of € 28m and € 66m from OTP Banka, documents showed. posted on the Serbian government website last week.
The funding will be used by Srbijagas to accelerate the expansion of its gas distribution network in the districts of Kolubara, Bor, Zajecar, Pcinja and Jablanica, as well as for the construction of the Belgrade-Loznica, Leskovac-Vranje and Paracin-Prahovo pipelines. .
“Gasification is a strategic project which, in addition to protecting the environment, would create the conditions to attract foreign investors to these areas as they bypass them due to the lack of gas supply,” the government said.
According to Serbian media, there are around one million households in Serbia that use solid fuels to heat their homes and with the investments their number would be halved by the end of 2022.
($ = 0.81649 euro)