Contract for South Stream construction through Serbia signed

BELGRADE - Companies South Stream Serbia and Centar Gas from Russia signed the Contract on the construction of the Serbian section of the main South Stream gas pipeline to the total value of EUR 2.1 billion.

The contract was signed by co-directors of South Stream Serbia Dusan Bajatovic and Aleksandar Siromjatin and Director General of Centre Gas Stanislav Anikeyev on Tuesday.

They said that this is a historic day for the Serbian energy sector and that the first gas deliveries would go through Serbia via the South Stream pipeline by the end of 2016 as was originally planned.
“A major share of work was completed today,” Bajatovic said after the ceremony to sign the Contract and he expressed special gratitude to President of the Russian Federation Vladimir Putin and Serbian Prime Minister Aleksandar Vucic for helping in the search for solutions to some open issues in the area.

He announced that the contract on the loan for the Serbian section of the South Stream pipeline would also be signed soon and added that the funds have already been set aside so the South Stream Serbia would get the loan worth around EUR 700 million from Gazprom.

Bajatovic said that the loan would be taken out at most favourable financial conditions, with the annual interest rate at 4.25 percent and the maturity date which would be most suitable for the country.

He said that the conceptual design for the Serbian pipeline section has been drawn up and the site permit has been procured, while the construction permit for the entire section should be issued in the next few weeks, which will be followed by land expropriation and signing of major contracts on the delivery of pipes and compression units for the Serbian pipeline section.