September 7 (SeeNews) - Serbia's environment ministry signed an agreement for the replacement of the coal boilers of the district heating system in Kragujevac with a consortium of local companies Energotehnika, Reming, Jadran and AG Institut, it said.
The consortium will complete the works within 120 days so that the new boilers could be put into trial operation during the upcoming heating season, the ministry said in a statement on Monday.
"When this large project is completed, the emissions of carbon dioxide (CO2) in the city center will be reduced by 66%, nitrogen oxide by about 90%, while the emission of particulate matter will be eliminated," environment minister Irena Vujovic said.
In June, the European Bank for Reconstruction and Development (EBRD) approved the provision of a 18 million euro ($21.4 million) sovereign loan to Serbia for the project.
The loan will be used for the decommissioning of the old coal boilers from the district heating system in Kragujevac, installation of new natural gas-based hot water boilers with a total capacity of 110 MW, project supervision and rehabilitation of the ash disposal site.
($ = 0.8424 euro)