Serbia: EU and its bank EIB Global provide €96 million to modernise electricity distribution network and improve waterborne transport

• EIB Vice-President Robert de Groot has expressed unwavering support for sustainable connectivity and the green and digital transition in Serbia.
• The EU bank has signed an €80 million loan to finance energy efficiency improvements to the electricity distribution system through the installation of smart meters.
• The Bank has also signed a €16 million grant under the Western Balkans Investment Framework to support investments in the inland waterway network.
• EU funding for these two investments will help Serbia create modern and resilient electricity and transport infrastructure.

 During his first visit to Serbia, the European Investment Bank (EIB) Vice-President, responsible for the Western Balkans, Robert de Groot attended the signature ceremony for an €80 million loan with Elektrodistribucija Srbije d.o.o (EDS), Serbia’s electricity distribution company, to replace obsolete electromechanical metering devices with around 400 000 smart meters. As part of a wider electricity grid modernisation programme, the installation of new smart meters will help the distribution system operator reduce electricity losses, improve collection rates and facilitate the integration of renewables in the near future. The signature ceremony was attended by the Minister of Mining and Energy Dubravka Đedović Handanović, Business Systems Director of EDS Vjekoslav Bobar, and State Secretary for the Ministry of Finance Ana Tripović.

By supporting the rollout of advanced electricity meters, the EIB funds will help Serbia promote energy efficiency, implement optimised tariff methods and provide a reliable electricity supply. The project will be co-financed by the European Bank for Reconstruction and Development and the EU budget contribution channelled under the Western Balkans Energy Support Package, which was adopted in 2022 to increase energy security in the region.

On the same occasion, the EIB signed a €16 million EU grant under the Western Balkans Investment Framework to enable the removal of sunken vessels from the stretch of the Danube River between Serbia and Romania, one of the most important rivers in Europe. The funds will enable safe, more efficient and reliable navigation conditions throughout the year. Eliminating existing bottlenecks is also essential to accommodate an expected increase in the total volume of cargo, ensure the reliability of the infrastructure and promote a modal shift from roads to waterways, one of the cleanest modes of transport.

The grant agreement was signed by Vice-President de Groot, Serbian Minister of European Integration Tanja Miščević, and Minister of Construction, Transport and Infrastructure Goran Vesić, in the presence of Emanuele Giaufret, head of the EU Delegation to Serbia. The grant supplements an existing EIB loan, as well as technical assistance financed under the EIB’s Economic Resilience Initiative and the Western Balkans Investment Framework. These funds form part of the wider scheme of ongoing investments to increase the capacity, efficiency and safety of inland waterways along the Danube and Sava Rivers.

“Today’s signatures are a testimony to the EIB’s commitment to enhancing sustainable connectivity in Serbia, in line with the EIB’s role as the EU climate bank and the country’s green transition goals. The investments will benefit people in Serbia by providing more reliable and efficient transport and energy infrastructure and will also support the country’s and the region’s economic growth,” said EIB Vice-President Robert de Groot.

Minister of Mining and Energy Dubravka Đedović Handanović said: “Today we have signed an €80 million loan agreement with the European Investment Bank to replace 400 000 existing meters and install new ones that use the most advanced technology. This will help to reduce electricity losses and meter reading errors and lead to more efficient consumption management and the easier integration of renewable energy sources in our country. The European Union has already donated €110 million for the installation of over half a million new meters, and we plan to replace most of the existing meters by the end of the decade. We need to make sure our distribution system uses the latest technology to ensure a safer and better supply of electricity for all our people.”

Minister of European Integration Tanja Miščević explained that, in four years, once all the obstacles have been removed from the riverbed in this part of the Danube, water traffic in Serbia and the region will be much more competitive, as both the safety and efficiency of navigation along this international corridor will meet the highest standards.

“Modal shift opportunities from road to inland waterway transport will be enhanced. Not only will this accelerate the transport of goods, but it will also help protect the environment by reducing greenhouse gas emissions, as water transport will be used much more than it is now. In this way, this technically and financially demanding project – a joint undertaking of Serbia and the European Union – will achieve the goal for which it was begun: to bring significant benefits to the economy and people of Serbia, as well as to the region and Europe as a whole,” Minister Miščević said.

Minister of Construction, Transport and Infrastructure Goran Vesić said: ““Serbia is now, for the first time, on the right track to resolve its problem with the sunken vessels. Thanks to this project with the EU, the country will be able to remove 21 vessels which are situated on the navigation route. After this, we will consider how to proceed with the extraction of the remaining 200 shipwrecks, as estimated. On behalf of my Ministry, I would like to thank the EU for the grant received today. I would like to emphasize this, as the EU remains the only partner to Serbia that provides this kind of support, which we perceive as a sign that the EU sees Serbia as its future member and part of the single European market.”

Head of the EU Delegation to Serbia Emanuele Giaufret said: “Today, we signed a grant agreement worth EUR 16 million, - an EU donation to Serbia for the project of Removal of World War II sunken vessels from the Danube in Serbia, located downstream of the Port of Prahovo, at the Djerdap gorge on the border with Romania. This project will improve the navigability of the Danube in Serbia. It will make navigation of the Danube safer, greener, and more efficient, reducing environmental and safety hazards. It is an important project for the Green Agenda too, as it will facilitate the much-needed shift from road to waterway transport. It is a part of the Economic Investment Plan for the Western Balkans, which aims to mobilise up to €30 billion for the region. EU delivers results for the better life for the citizens of Serbia.”

Background information

 About the European Investment Bank and EIB Global

The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to foster EU policy goals. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world. 

About the EIB in Serbia

 The EIB has been active in Serbia since 1977, providing finance to support key infrastructure projects as well as small and medium enterprises (SMEs), industry, services and local authorities. Since it began operating in the country, it has enabled over €8 billion of investment in SMEs and in upgrading transport, education, healthcare and utility infrastructure. For more information regarding the EIB’s projects in Serbia, please visit https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/serbia/index.htm.

 About the EIB in the Western Balkans

 The EIB is one of the leading international financiers in the Western Balkans. Since 2010, the Bank has financed projects totalling close to €11 billion in the region.

For detailed information on the EIB’s activities in the Western Balkans, please visit www.eib.org/en/publications/the-eib-in-the-western-balkans.