Serbia

Cooperation with Serbia in the energy sector began in 2000 with the financing of aid programmes to secure the electricity supply through imported electricity and the supply of spare parts for the rapid repair of power plants. Shortly afterwards, the rehabilitation of the first district heating systems in the largest cities was started. Over time, the projects became much more challenging: the district heating programme was extended in several phases to smaller towns and cities and, in terms of technology, biomass was also integrated, as environmental impacts became increasingly important.

With regard to electricity generation, the promotion of renewable energies also moved into the foreground. In Serbia KfW’s focus is mainly on hydropower and wind power. To ensure that the transmission grids are equipped for the increased use of renewable energies, KfW also supports the construction of new transmission lines.

New projects for the energetic refurbishment of public buildings are also being implemented and will form a priority area of cooperation in the future. This also applies to the credit lines which, under FC, enable many MSMEs, private households and municipalities to invest in energy efficiency and renewable energies through the Serbian banking sector. Today the promotion of the energy sector is the most important pillar of German Development Cooperation with a commitment volume of over EUR 1.0 billion.

Project information - Energy  (PDF, 95 KB, non-accessible)

Financial Cooperation (FC) with Serbia in the environmental sector supports the Serbian Government in the process of rapprochement with the European Union, particularly in the implementation of relevant EU directives (especially Chapter 27). On behalf of the German Federal Government KfW, together with the Serbian Government, is promoting efficient and environmentally sound water and sanitation systems as well as integrated and climate-friendly waste management in over 20 towns with more than 1.3 million inhabitants. Institutional and financial reforms of the municipal utilities and the establishment of modern work processes are a prerequisite for investments and an essential component of the programmes. The result for citizens is a reliable, environmentally and socially compatible and service-oriented supply of drinking water and disposal of wastewater and waste.

By supporting the financial sector KfW contributes to the sustainable economic development of Serbia. Funds from BMZ, the EU and KfW's own funds are combined to expand financial services and make them more accessible. The focus here is on rural development, energy efficiency / renewable energies and municipal infrastructure.

Despite the development of the Serbian banking sector in recent years, it is still difficult for micro, small and medium-sized enterprises (MSMEs) and municipalities in Serbia to obtain loans. The reasons for this include a lack of collateral, but also a lack of knowledge among borrowers. Accompanying measures are used to impart the necessary know-how for the successful use of the financial products and at the same time strengthen the capacities of the respective ministries (e.g. Ministry of Agriculture, Ministry of Energy).

In addition, KfW is investing in several funds to promote MSMEs and energy efficiency/renewable energies in Serbia. In cooperation with the Serbian government, KfW is also currently preparing the introduction of a start-up financing programme.