The European Bank for Reconstruction and Development approved a 45 million-euro ($59 million) loan to Elektroprivreda Srbije, Serbia’s power monopoly, for renovating and building small hydro plants.
The sovereign loan to the state-owned company is for refurbishing 15 small plants of 18 megawatt combined capacity and for building seven new ones on existing dams whose capacity will total 13 megawatts, the London-based lender said in an e- mailed statement.
Serbia’s Infrastructure Ministry said on Nov. 17 that the EBRD suggested the country take the loan even though it was close to a self-imposed debt limit of 45 percent of gross domestic product. The EBRD statement today made no reference to the debt issue. It said the investment in hydro facilities will help cut Serbia’s carbon emissions by 60,000 tons a year.