Download Continuation of large investments in EPS Quarter of a Billion Euros

Continuation of large investments in EPS
Quarter of a Billion Euros for Ecology
Notes and Loan Agreement for flue gas desulphurisation project in TPP “Nikola Tesla A“ in
Obrenovac have been signed between the Government of Japan and the Government of Serbia,
Electric Power Industry of Serbia and Japan International Cooperation Agency
With today's exchange of notes between the Government of the Republic of Serbia and the
Government of Japan, and with the signing of the Loan Agreement between Electric Power
Industry of Serbia and Japan International Cooperation Agency, funds for implementation of flue
gas desulphurization project at TPP "Nikola Tesla A" in Obrenovac have been provided. Loan for
the construction of the flue gas desulphurization plant at TPP "Nikola Tesla A" is worth 28.25 billion
yen, i.e. about 26.25 billion dinars, and represents the largest investment in the field of
environmental protection in Serbia.
Note was signed by Božidar Đelic, Deputy Prime Minister for European Integration, and Toshio
Tsunozaki, Ambassador of Japan. On the same occasion, the Loan Agreement was signed by
Dragomir Marković, General Manager of EPS and Satoru Kurosawa, Permanent Representative of
Japan International Cooperation Agency in Serbia. The loan terms are very favourable, with an
interest rate of 0.6 percent annually, with a repayment period of 15 years and a grace period of five
years.
"I am very pleased that after two years of negotiations between the Government of Japan and the
Government of Serbia, the loan agreement has been signed, with which the most valuable project
in the field of environmental protection in Serbia shall be implemented. The loan is very favourable,
when compared with the terms of commercial loans, Serbia has received EUR 150 million loan and
EUR 100 million donation" – said Božidar Đelic, Deputy Prime Minister for European Integration.
We are particularly grateful to the people and the Government of Japan, because in a very difficult
moment, after the earthquake and tsunami, they decided to approve the loan to Serbia.
Toshio Tsunozaki, Japanese Ambassador to Serbia, said that this is the first Japanese loan to
Serbia. He noted that the agreement is just a continuation of a very successful and friendly
cooperation between the two nations, which has lasted for 130 years. Tsunozaki emphasized that
Japan shall also continue economic cooperation with Serbia, especially in improving the
environment, and he particularly thanked the people of Serbia for solidarity expressed after natural
disasters in Japan.
"Japan International Cooperation Agency shall continue to be an active partner of Serbia in the
years to come, and this project, which shall improve environmental conditions in Obrenovac and
Serbia, is the cornerstone of our future cooperation" – said Satoru Kurosawa, Permanent
Representative of Japan International Cooperation Agency.
Dragomir Marković, General Manager of EPS, explained that this project is the largest investment
in the environmental field in EPS and Serbia. "It is very significant that with this loan the emissions
of sulfur dioxide from power plants in Obrenovac shall be at the level of European standards, and
this project allows the opening of the capacities for gypsum production. In this way it will be
possible to employ several hundred citizens, which is especially important for Obrenovac " – said
Marković.
Flue gas desulphurization project at TPP "Nikola Tesla A" shall contribute to minimizing the
negative impacts of generation in thermal power plants, it shall significantly reduce emissions of
sulfur oxides and harmonize emission limit values of sulfur dioxide with the European Union
Standards. It shall have a direct impact on the health of the population, because besides the effect
of air quality improvement, a reduction of acid rain and negative effects on forest and soil
acidification shall occur. Implementation of this project provides the reduction of emissions of sulfur
dioxide (SO2) from the current 1200-3000 mg/m3 to the level lower than the current European
Standard of 400 mg/m3. Namely, with the terms of reference for the plant to be constructed in TPP
"Nikola Tesla A", reduction of emissions of sulfur dioxide to 200 mg/m3 is planned. It is important
to mention that a byproduct of this method of purification of flue gases is gypsum, which is very
widely used in building materials industry. According to EPS estimates, in the desulphurization
process at TENT A, about 400,000 tons of gypsum could be produced annually.