Djedovic Handanovic, World Bank representatives discuss new 1 bln euro gas programme

BELGRADE - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic met with a World Bank delegation on Tuesday to discuss the implementation of the initial stage of a new gas programme that includes the construction of the first section of a Nis-Velika Plana gas pipeline.

The parties also discussed funding and project management.

"We are working on concrete steps for the launch of a 1 bln euro project through which we will strengthen and modernise the internal gas infrastructure and institutional capacities and provide support to reform activities with the World Bank. In the first stage, we will build the first section of a Nis-Velika Plana gas pipeline," Djedovic Handanovic said in an official statement.

New gas pipelines to be built through the project will enable Serbia to harness the full potential of gas interconnections with neighbouring countries, the minister noted.

That also means greater energy security and strengthening of Serbia's position as a transit country and a gas hub in this part of Europe, which will also bring higher revenues to the country, she added.

"The southern and eastern parts of the country will get greater access to gas, which is important for industrial development and for attracting investments," Djedovic Handanovic posted.

She added that subsequent stages of the programme would aim to boost the capacities of the existing natural gas transport network, build compressor stations and expand underground gas storage facilities, which she noted would bolster the security of the system and increase regional connectivity and system flexibility.