SOCAR has announced the signing of a shareholders’ agreement with Serbia’s state-owned energy companies Electric Power Industry of Serbia (EPS) and Srbijagas for the development of a 500 MW combined-cycle gas-steam power plant in the Serbian city of Niš.
The agreement was signed in Belgrade by Elchin Ibadov, Advisor to the President of SOCAR and CEO of SOCAR Trkiye, Dušan Živkovic, CEO of EPS, and Dušan Bajatovic, CEO of Srbijagas.
According to SOCAR, the agreement provides for the construction of the 500 MW power plant and the establishment of a joint venture to implement the project.
‘Under the agreement, which envisages the construction of a 500 MW power plant and the establishment of a joint venture, the Serbian participants will hold a 50% stake, while the Azerbaijani side will hold the remaining 50%. The document outlines the rights and obligations of the parties, joint management principles, the requirement for unanimous decision-making during the preparatory phase, and the terms for financing the project,’ SOCAR said.
The equal ownership structure will see SOCAR holding half of the venture, with the remaining 50% belonging to the Serbian participants.
The signing ceremony also featured remarks by Serbia’s Minister of Mining and Energy Dubravka Ðedovic Handanovic, Ibadov, Živkovic and Bajatovic.
The officials highlighted the strategic partnership between Azerbaijan and Serbia, noting that projects of this scale have been made possible by the political relationship developed between the two countries under President of Azerbaijan Ilham Aliyev and Serbian President Aleksandar Vucic.
The planned Niš power plant is expected to contribute to strengthening Serbia’s energy security and improving the stability of the country’s electricity system.