Serbia to export power to Italy in exchange for new plants
25. December 2009. | 11:23
Serbia's Ministry of Energy announced Wednesday that according to an agreement with the Italian government, Italy would finance the construction of hydroelectric power plants and wind generators in Serbia, which would later be paid for by exporting all of the power they would produce to Italy, at a price four to five times higher than that in Serbia.
In reaction to some claims made in the Serbian media, saying that the agreement meant that electric power would be exported for free, the Ministry stated that the export arrangement would eventually return all the investments needed to build the plants, network, wind generators and purchase other equipment, which Serbia could not provide, adding that all that infrastructure, along with the produced power, would belong to Serbia once the debts were paid off.
"We will employ our own companies and labor to build new capacities. We will gain new energy facilities, where the ownership will be defined through a contract between Italian companies and the EPS (the national power company).
The entire turnover will be subject to Serbia's taxes, and the facilities will belong to Serbia once the period stipulated in the contact has ended," the Ministry states.