POTPEC HPP RECONSTRUCTION AND CAPACITY EXPANSION (EIB-20240006)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Serbia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Investment Bank (EIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 25, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
JSC ELEKTROPRIVREDA SRBIJE BELGRADE
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 87.87 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 76
Converted using 2026-03-25 exchange rate.
Loan Amount (USD)
$ 87.87 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 76 million
Converted using 2026-03-25 exchange rate.
Project Cost (USD)
$ 105.21 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 91 million
Converted using 2026-03-25 exchange rate.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ EIB website

Updated in EWS Apr 1, 2026

Disclosed by Bank Jan 14, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the EIB, the operation is an allocation under a signed Framework Loan for Green Financing by EPS (Elektroprivreda Srbije) for the reconstruction of three existing power units and the construction of a new 13 MW power unit at the Potpec Hydropower Plant (HPP).

The aim of rehabilitating the existing units is to extend their operational lifetime, reduce maintenance costs, and increase efficiency. The construction of the new unit aims to compensate for lost production during the rehabilitation of the existing units and to utilise overflowing water. Together, the rehabilitation and construction activities are expected to increase average annual electricity generation from 213 GWh to 236.7 GWh.

The Environmental Impact Assessment (EIA) process and public consultation for the Potpec Hydropower Plant rehabilitation and capacity expansion were successfully completed, and the corresponding environmental consent was issued by the competent authority (Ministry of Environmental Protection) in 2018.
As project implementation did not commence within two years (2020), the consent expired. Upon the promoter's application, the Ministry re-issued the environmental consent in July 2024, confirming that no new or updated EIA is required, that the expired EIA remains valid, and that all defined mitigation measures must be applied. The EIA report will be reviewed during appraisal to ensure compliance with EIB's environmental standards. The project is expected to contribute to climate action and environmental sustainability objectives, particularly in terms of climate change mitigation.

The Promoter shall ensure that tender procedure will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on the company's LinkedIn account, Joint stock company Elektroprivreda Srbije as the largest company in Serbia represents economic and energy backbone of the country. The main activities of EPS AD are the production, supply and trade of electricity. EPS is owner a the coal mines, thermopower plant and hydropower plant. EPS supplies electricity to 3,4 Million consumers. The founder of Joint stock company Elektroprivreda Srbije is the Republic of Serbia and the founder's rights are exercised by the Government of the Republic of Serbia.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Javno Preduzece "Elektroprivreda Srbije" Beograd - EPS Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No project contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.eib.org/en/infocentre/registers/request-form/request-form-default.htm

ACCOUNTABILITY MECHANISM OF EIB

The EIB Complaints Mechanism is designed to facilitate and handle complaints against the EIB by individuals, organizations or corporations affected by EIB activities. When exercising the right to lodge a complaint against the EIB, any member of the public has access to a two-tier procedure, one internal - the Complaints Mechanism Office - and one external - the European Ombudsman. A complaint can be lodged via a written communication addressed to the Secretary General of the EIB, via email to the dedicated email address: complaints@eib.org, by completing the online complaint form available at the following address: http://www.eib.org/complaints/form via fax or delivered directly to the EIB Complaints Mechanism Division, any EIB local representation office or any EIB staff. For further details, check: http://www.eib.org/attachments/strategies/complaints_mechanism_policy_en.pdf

When dissatisfied with a complaint to the EIB Complaints Mechanism, citizens can then turn towards the European Ombudsman. A memorandum of Understanding has been signed between the EIB and the European Ombudsman establishes that citizens (even outside of the EU if the Ombudsman finds their complaint justified) can turn towards the Ombudsman on issues related to 'maladministration' by the EIB. Note that before going to the Ombudsman, an attempt must be made to resolve the case by contacting the EIB. In addition, the complaint must be made within two years of the date when the facts on which your complaint is based became known to you. You can write to the Ombudsman in any of the languages of the European Union. Additional details, including filing requirements and complaint forms, are available at: http://www.ombudsman.europa.eu/atyourservice/interactiveguide.faces

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