Active Mixed AidData Chinese Aid

China Eximbank provides EUR 164.6 million buyer’s credit loan for 29.18 km Obrenovac-Novi Beograd Heating Pipeline Project

$164.69M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Serbia
Country	Serbia
Start Date	Jan 17, 2020
End Date	Nov 23, 2026
Duration	2,502 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67648`

Grant Description

China Eximbank provides EUR 164.6 million buyer’s credit loan for 29.18 km Obrenovac-Novi Beograd Heating Pipeline Project On June 7, 2017, the Chinese Government and the Government of Serbia signed a Memorandum of Understanding on the 29.18 km Obrenovac-Novi Beograd Heating Pipeline Project.

Then, on January 17, 2020, China Eximbank and the Government of the Republic of Serbia signed an EUR 164,685,800 buyer’s credit loan (BCL) agreement [ID#1420313022020210056] for the 29.18 km Obrenovac-Novi Beograd Heating Pipeline Project. The National Assembly of Serbia ratified the loan agreement in February 2020.

📋 Loan / Grant Terms

📅 Maturity15 years

⏳ Grace Period3 years

The proceeds of the loan (BCL) are to be used by the borrower to finance 85% of the cost of an EUR 193,748,000 commercial (EPC) contract between Public Utility Company "Beogradske elektrane”, the City of Belgrade, and Power Construction Corporation of China (PowerChina), which was signed on November 27, 2017 and amended on July 9, 2019.

The lender made disbursements worth EUR 32,937,000 ($37,265,000) in 2021.

The loan’s (principal) amount outstanding was $0 as of December 31, 2020, EUR 32,937,000 ($37,265,000) as of December 31, 2021, and EUR 32,937,000 ($32,321,000) as of September 31, 2022.

The purpose of the project is to construct a 29.18 km heating pipeline (heat transmission line) — with heat transfer capacity of 800MW — that connects the Termoelektrane Nikola Tesla (TENT) power plant near the city municipality of Obrenovac (exact locational coordinates: 44.65461414707668, 20.004822111741095) and the Novi Beograd (New Belgrade) thermal power plant (exact locational coordinates: 44.8005, 20.4099).

The project also involves the construction of four pumping stations.

The project will seek to use hot water, which is currently discharged from a power plant into the Sava river, for heating purposes.

Upon completion, the heating pipeline is expected to generate annual savings of about EUR 43 million, or roughly one third of the EUR 140 million that the Belgrade district heating company spends on natural gas imports each year. Power Construction Corporation of China (PowerChina) is the EPC contractor responsible for implementation.

Construction was originally scheduled to commence in June 2021. However, as of January 2022, AidData could not identify any evidence that construction had commenced. Some sources seems to suggest that the COVID-19 pandemic has led to implementation delays.

There is, however, evidence that some preliminary (pre-construction) activities have taken place, such as land expropriation.

📋 Staff Comments

The Chinese project title is 塞尔维亚奥布雷诺瓦茨至贝尔格莱德新区供热管道建设项目 or 塞尔维亚奥布雷诺瓦兹至贝尔格莱德新区供热管道建设项目. The Serbian project title is Пројекат изградње топловода Обреновац - Нови Београд.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The China Eximbank BCL (loan) agreement [ID#1420313022020210056] can be accessed in its entirety via https://www.dropbox.com/s/gjrlmg2c8e8f55w/China%20Eximbank%20loan%20agreement%20for%20Construction%20of%20District%20Heating%20Pipeline%20Project%20Obrenovac-Novi%20Beograd.pdf?dl=0

📚 Sources & References

Agreement on loan for construction of Obrenovac-New Belgrade heating pipeline confirmed
Agreement signed with POWERCHINA on construction of Obrenovac-New Belgrade heating pipeline
Belgrade Mayor signs contracts with Chinese companies to build waste water plant and heating pipeline
Belgrade to sign heat pipeline construction deal with Chinese company - mayor
Bulletin Public Finance
Chinese company to build heating pipeline in Belgrade
DISTRICT HEATING SYSTEM OF BELGRADE SUPPLIED FROM THE CO-GENERATION PLANT'OBRENOVAC'
Gojkovic Convenes New Session
Bill on Staro Sajmiste Memorial on Agenda
Izgradnja toplovoda Obrenovac – Novi Beograd počinje u junu
Loan Agreement Between THE EXPORT-IMPORT BANK OF CHINA as the “Lender” and THE REPUBLIC OF SERBIA REPRESENTED BY THE GOVERNMENT OF THE REPUBLIC OF SERBIA ACTING BY AND THROUGH THE MINISTRY OF FINANCE as the “Borrower” (Construction of District Heating Pipeline Project Obrenovac-Novi Beograd) Agreement No. 1420313022020210056
LOAN FOR CONTRACTING FOREIGN CONSTRUCTION PROJECT
Memorandum on Building Obrenovac-New Belgrade Distance Heating System
Obrenovac to New Belgrade Heating Pipeline Construction Project
POWERCHINA to build Obrenovac-New Belgrade heating pipeline – Agreement annex signed with Chinese company
Public Finance Bulletin, 2020
Public Finance Bulletin, 2021
Public Finance Bulletin, 2022
Public Finance Bulletin, 2023
Public Finance Bulletin, 2024
Public Finance Bulletin
December 2019
Public Finance Bulletin
December 2020
Public Finance Bulletin
December 2021
Public Finance Bulletin
January 2018
Public Finance Bulletin
September 2022
Serbia signs 190 mln euro heat pipeline deal with Powerchina
Serbia
China to sign Belgrade heat pipe construction deal on Nov 27 - PM Brnabic
Serbia: A loan of 193 million euros has been secured for the construction of the Obrenovac – New Belgrade district heating system
Serbia: Agreement for new heating remote line project signed
Serbia: Heating pipeline Obrenovac-New Belgrade, construction to start in June
Serbia: Loan agreement for Obrenovac-New Belgrade heating pipeline approved, Пројекат изградње топловода Обреновац - Нови Београд
中国一中东欧国家领导人峰会成果清单
中国电建集团核电工程山东公司塞尔维亚奥布雷诺瓦茨至贝尔格莱德新区供热管道建设项目
公司签约塞尔维亚奥布雷诺瓦茨至贝尔格莱德新区供热管道建设项目
公司签约塞尔维亚奥布雷诺瓦茨至贝尔格莱德新区供热管道建设项目
口行一季度海外贷款的6大项目非洲为主
电建国际公司签约塞尔维亚奥布雷诺瓦茨至贝尔格莱德新区供热管道建设项目
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盘点：2020年上半年中资承包商搞定融资与贷款的10个海外项目
进出口银行与塞尔维亚政府再签项目贷款协议 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.