The European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) are providing loans worth €130mn to support investments in new electricity and heat cogeneration units in Croatia’s capital Zagreb to replace outdated oil- and gas-fired turbines and boilers, the EBRD said on July 24.

The loan financing will be split between the EBRD with an €87mn loan and the EIB with €43mn. The project will be implemented at Elektrana-toplana Zagreb, a power plant fully owned and operated by HEP Group.

A special feature of the financing is that the EIB loan will be guaranteed by the European Fund for Strategic Investments (EFSI), which is the central pillar of the Investment Plan for Europe (also known as the Juncker Plan).

“The loan proceeds will be used for the installation of two low-NOx gas turbines, two heat recovery steam generators and one back pressure steam turbine producing heat and electricity at the Elektrana-toplana combined heat and power (EL TO CHP) plant close to the centre of Zagreb. The capacity of the new combined cycle gas turbine units will be 150 MW of electrical energy and 114 MW of thermal energy, with lower greenhouse gas emissions,” the EBRD said.

“This innovative operation supported by the EIB, the Investment Plan for Europe and the EBRD will improve the quality of life of the citizens of Zagreb by reducing pollution levels and ensuring reliable supply to the city’s district heating network. It will help reach efficiency targets and provide a source of electricity from highly efficient cogeneration,” EIB vice president Dario Scannapieco said.