Belgrade, 24 March 2020. – General Manager of EMS jsc. Jelena Matejić and the representative of the Contractors’ Consortium Mladen Žujković have signed today, in the presence of the Minister of Energy and Mining HE Aleksandar Antić, the Agreement on construction of the 400kV transmission line from SS Kragujevac 2 to SS Kraljevo 3. The agreement is signed in the premises of Elektromreža Srbije, with the observation of all the relevant measures for protection against the coronavirus.
This transmission line is part of the second phase of the Trans-Balkan corridor for power transmission as a project of a particular national and regional significance that will enable a secure and stable power supply to customers in the territory of the Republic of Serbia and, at the same time, couple electricity markets of eastern and western Europe. In addition to the power line construction, the Second Phase will also include the upgrade of the SS Kraljevo 3 to the 400kV voltage level as well as equipping one 400kV feeder bay in SS 400/110kV Kragujevac 2.
On this occasion, Minister Aleksandar Antić was quoted as saying:

‘’The high-voltage transmission power line from Kragujevac to Kraljevo, for which construction we signed the contract, is the first infrastructural project after the state of emergency was introduced in the Republic of Serbia, and it, therefore, tells us a lot how exceptional importance this project takes within the Trans-Balkan corridor for electricity transmission.
With this contract we are in the best way demonstrating that Serbia must continue with its strong development policy, even though we have been deploying all capacities and instruments of the state in the combat against the COVID-19 outbreak and for protection of the lives of our citizens.
As stated yesterday by the Serbian President Aleksandar Vučić Serbia would fight hard in this combat so as to minimize the consequences to the economy and to deal with the halt of the economic growth. That is why we will need investments and why this project is important, bearing in mind that the project implementation will start in a less than a month, and the local companies will have a dominant role in its execution.
The construction of this electricity high-way will have a high impact to the general energy stability in the region, since it now connects us, via Romania, with Eastern Europe, but after completion of the next phases it will connect us with Western Europe, too.“
The length of the power line for construction is 60 kilometres, and the total contract value of works and equipment amounts to 13.5 million euros. The work activities should commence in about thirty (30) days, with, of course, full compliance with all measures and the circumstances concerning the coronavirus epidemic. Time limit for completion of the works is 610 days. Total investment value of the Second Phase, including the works in substations of Kragujevac and Kraljevo, is 29.6 million euros.
The financing is secured from the funds of the loan amounting to 15 million euros approved to EMS (supported by the sovereign guarantee) by the KfW Development bank of Germany, then 6.5 million euros of EU grant which will be allocated to EMS via mechanism of the EUWestern Balkans Investment Framework from the European Western Balkans Joint Fund (the aid will be directly paid by KfW), and from the own financial resources of EMS jsc.
’’Even in the hard times such as these we do not stop thinking about providing a secure energy future for our country and its citizens. The transmission power line that we are building is of huge importance for the stability and security of power supply in central Serbia; but, being a part of the Trans-Balkan corridor, it is also of big regional significance, because it will be an important part of a single highway in this part of Europe. Thank you all who have diligently worked and made it possible that this agreement is signed today. These Thanks in particular go to the members of the previous management of the company, who recognised the importance of this project and laid its foundation back in 2014. Then, to the Government of the Republic of Serbia and the Ministries of Energy, Finance, Construction and European integrations. Thanks to the expert team who is working on project implementation. Also special thanks to our partners from the German KfW Development bank. I am also proud that, in the international competition, this important job has got a consortium mainly composed of local companies and firms’’, points out the EMS general manager Jelena Matejić.
 In the course of project implementation, the 220kV overhead transmission network located in these areas of Serbia, that mostly at the end of its life cycle, with an average age of equipment being 50 years, will be replaced. The voltage uprating to 400kV in the SS Kraljevo 3 will, in some future period, enable stable operation of the pumped storage plant (PSP) Bajina Bašta, as well as a stable operation of the future PSP Bistrica (planned capacity 680 MW). This will also contribute to the sustainable economic growth of Serbia, but also to the global climate protection by means of reducing the CO2 emissions, and a significant reduction in power losses
The Procurement of works and equipment for the second phase of the Trans-Balkan corridor is divided into two lots. The Lot 1 included procurement of works and equipment for the transmission line, and it was conducted under the KfW Rules, via pre-qualification and qualification stages. Upon completion of both stages, a contractor that was selected for this project is a Consortium composed of Koda Elektromontaža doo, of Belgrade (a lead member of the Consortium), Elektromontaža doo, of Kraljevo, and Elnos BL, of Banja Luka. The Lot 2 includes the procurement of equipment and works for the upgrade of SS Kraljevo 3 and equipping the bay in SS Kragujevac 2, and selection of the contractor for this lot is in the final stage and it is expected that the agreement will be soon signed. In the implementation of the procedure for procuring the works and equipment, huge support as project consultant was provided by the consortium of companies AF Consult Switzerland and ELEM&ELGO.
By the way, the First Phase meant the construction of a double circuit 400kV transmission line from Pančevo to the Romanian border, which ended in December 2017. The First Phase was entirely financed by EMS jsc.
When the Second Phase of the Trans-Balkan Corridor ends, the Third Phase will follow that will include construction of a double circuit 400kV transmission line from Bajina Bašta to Obrenovac (109 kilometre long), upgrade of SS Bajina Bašta to 400kV voltage level, and equipping new two feeder bays of 400kV in SS 400/220kV Obrenovac, and finally, the Fourth Phase that will include construction of double 400kV transmission line Bajina Bašta – Višegrad – Pljevlja.