EPS, SOCAR preparing shareholders' agreement for Niš gas power plant project

Serbia's state-owned power utility EPS and Azerbaijan's State Oil Company, SOCAR, are expected to sign a shareholders' agreement in the coming weeks to establish a joint venture for the construction of a gas-fired power plant in the city of Niš, Serbian Minister of Mining and Energy Dubravka Đedović Handanović said during a meeting with Niš Mayor Dragoslav Pavlović.

According to Report's Balkan bureau, the parties discussed progress on the implementation of the gas power plant project in Niš.

Đedović Handanović emphasized that the power plant is a strategic project being developed within the framework of cooperation between Serbia and Azerbaijan.

The minister recalled that the agreement on the project's implementation was signed in February this year in Belgrade in the presence of the presidents of Serbia and Azerbaijan.

"Preparation and coordination of planning documentation have already begun. The territorial plan for the city of Niš has been adopted and will serve as the basis for further work on the project," Đedović Handanović said.

She added that the meeting reviewed the implementation schedule and key events through the end of 2030, when construction of the power plant is expected to be completed.

According to the minister, the new facility will enhance the reliability of electricity supply and strengthen Serbia's energy security. An additional benefit will be improved district heating services for residents of Niš.

Đedović Handanović stressed the importance of coordinating the efforts of all stakeholders in preparation for the establishment of a joint venture between EPS and SOCAR.

"At the same time, work is underway to finalize the shareholders' agreement for the future joint company between EPS and SOCAR, which is expected to be signed in the coming weeks," she said.

Mayor Pavlović noted that the city administration and local institutions are doing everything possible to accelerate project preparations and complete all procedures necessary for construction to begin as soon as possible.

Earlier this month, EPS and SOCAR signed key terms of cooperation in Baku covering the development, construction, and operation of the Niš gas-fired power plant, outlining the main principles for establishing the joint venture and the project's core commercial parameters.