April 18 (SeeNews) - Serbian district heating equipment maker Izolir was awarded a 1.6 million euro ($1.73 million) contract to build a heating pipeline in Serbia's southern city of Novi Pazar, the energy ministry said.
The project will also include an overhaul of the existing heating infrastructure, the energy ministry said in a statement on Saturday.
The construction is a part of a broader project funded by German development bank KfW, under which up to 30 district heating plants in Serbia will be converted from fossil fuels to biomass.
The total value of works in Novi Pazar will amount to 6.5 million euro, with another contract for the construction of district heating substations expected in late April.
The construction will be finalized by October 1, the statement read.
Thanks to the project, district heating grid's carbon emissions will be cut by 90%, the energy ministry added.
($ = 0.9258 euro)