Nov. 24 (Bloomberg) -- Serbia signed a $366 million loan agreement with Japan today to finance a desulphurization project at a power plant near Belgrade to make its gas exhaustion less polluting for the environment.
The yen-denominated loan is the biggest-ever investment in Serbian environmental protection and comes with an annual interest rate of 0.6 percent and a 15-year tenure including a five-year grace period, Serbia’s power monopoly Elektroprivreda Srbije, or EPS, said in an e-mail.
The loan was signed after two years of negotiations Deputy Prime Minister Bozidar Djelic, who signed the loan on behalf of the government, was quoted as saying in the statement.
The desulphurization at the Nikola Tesla A thermal plant, based in Obrenovac, 30 kilometers (18.6 miles) south-west of Belgrade, will cut sulphur dioxide emissions to below the European Union’s standard of 400 milligrams per cubic meter, or to less than a third its present levels of 1,200-1,300 milligrams, the company said, adding the project ultimately aimed for emissions of 200 milligrams.
The planned desulphurization will also result in annual output of around 400,000 tons of plaster used in the construction-materials industry, it added.
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