Project ID: Cogeneration Facility

Industry Renewable energy sources

Investment form PPP with elements of concession

Public partner Municipality of Nova Varoš, local public enterprise „Energija“

Investment value EUR 10.5 million (EUR 18.5 million, depending on the selected technology)

Funding structure Municipality: EUR 1.5 millionMunicipality (donations, subsidies, loans): EUR 2 millionPrivate partners: EUR 7 million

Projected fi nancial results (000 EUR) 2014 2015 2016Revenues 338 1,500 1,500Expenses 195 409 409Gross income 143 1,091 1,091

� e Municipality of Nova Varoš is located in the South West Serbia, in the border area of three countries – Serbia, Montenegro and Bosnia and Herzegovina, next to main road M21. It has 16,758 citizens and covers the area of 581.47 km2. With 22,400 ha of forests, Nova Varoš is one of the top municipalities in Serbia regarding forest land, which makes great potential for the develop-ment of wood processing industry and investments in renewable energy sources (primarily biomass). In order to be� er utilize this resource, the Municipality plans to construct a cogeneration facility in cooperation with a private partner, to produce heating and (green) electricity. � e plan is to produce ca. 6 million kWh during the � rst year, and later on increase the amount to 20 million kWh.

Cogeneration Facility

Renewable energy sources

PPP with elements of concession

and Bosnia and Herzegovina, next to main road M21. It has 16,758 citizens and covers the area of 581.47 km2. With 22,400 ha of forests, Nova Varoš is one of the top municipalities in Serbia regarding forest land, which makes great potential for the develop-ment of wood processing industry and investments in renewable energy sources (primarily biomass). In order to be� er utilize this resource, the Municipality plans to construct a cogeneration facility in cooperation with a private partner, to produce heating and (green) electricity. � e plan is to produce ca. 6 million kWh during the � rst year, and later on increase the amount to 20 million kWh.

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Municipality of Nova Varoš, 32 Karađorđeva street, + 381 33 62 140, +381 33 62 142 ( fax)ounvaros@gmail.com, www.novavaros.rs

Dimitrije PaunovićMayorounvaros@gmail.com

Nova Varoš

PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF NOVA VAROŠ

ProjectCogeneration biomass facility will produce thermal energy intended for heating in Nova Varoš and touristic zone Zlatar, and the electricity to be sold to Electric Power In-dustry of Serbia (EPS). � e priority will be production of thermal energy (77%), while the electricity will account for 23%. � e thermal energy capacity is 10 MW, and 2 MW for electricity. � e project involves construction of thermal power lines of nominal pre-ssure of 25 bar with the required number of indirect substations, production of sanitary hot water, distribution to consumers, improving the energy e� ciency, expanding the use of district heating and a� racting new users. Possible form of project realization is PPP with the elements of concession, where the utility services would be performed by a special-purpose entity. � e agreement is concluded for a period from 5 to 50 years.

Documentation� e Municipality designed a study on potentials and opportunities for commercial use of wood biomass for production of energy and economic development of municipalities Nova Varoš, Priboj and Prijepolje.

Obligations� e Municipality shall provide land equipped with appropriate infrastructure – including the foundations and supporting structure, with all accompanying legal, property and technical documentation. � e private partner shall develop the techni-cal projects and invest in completing the required facilities, purchase of technological equipment and shall be in charge of the company production and management.

MarketSupply market: around 7,000 tons of wood chips, the basic input for the work of this facility, shall be provided by the local sawmills (ca. 86%), Public Enterprise “Srbijašume – Serbia forests” (12%) and local households (2%). It is estimated that coniferous wood mass, only, annually creates around 12,800 tons of wood chips. Placement market: the heating energy will be marketed to the existing and future district heating users in the Municipality, and the electricity shall be sold to EPS.

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