The European Bank for Reconstruction and Development may arrange financing of as much as 400 million euros ($532 million) to support Edison SpA’s Serbian venture for developing a 750-megawatt power plant.
The loan may be arranged together with commercial lenders, supporting the joint project of Edison and Elektroprivreda Srbije Srbija, Serbia’s power monopoly, for building the Kolubara B coal-fired plant 40 kilometers (24.8 miles) southwest of Belgrade.
The cost of the whole project is to be determined, the bank said. Serbia’s state-owned utility had estimated it may take 1 billion euros to complete the facility, whose construction began in 1988.
Completing Kolubara B would be “the first significant private-sector investment” in power production in Serbia, which also needs to replace “a number of obsolete power generation units” and cut carbon emissions from its lignite-fired plants to meet European Union environmental standards, the bank said.
Serbia, which became a candidate for EU membership on March 1, wants to comply with EU environmental standards by 2017.