ArcelorMittal today welcomed the financial support provided by the European Bank for Reconstruction and Development (EBRD) in bringing the “Toplana Zenica” project into reality.
Speaking at a signing ceremony in Zenica today, Mr Biju Nair, Chief Executive of ArcelorMittal Zenica said:
“The formalising of the financial package is another important step towards realizing a long-term, sustainable future for city heating and steel production in Zenica. Since we inherited the old and inefficient heating system in 2004, we have acknowledged that there has been no other source of heating to city of Zenica. We have therefore continued to supply heating to the city, although we were under no legal obligation to do so, and despite the fact that the old, unreliable boilers are a major source of SO2 emissions. We waited a long time for an alternative solution from the city, but that did not materialize.
ArcelorMittal Zenica therefore initiated the Joint Venture (JV) ‘Toplana’ project, which will bring the city cleaner air and more reliable winter heating. I am glad that the city accepted our proposal as the only reliable solution forward. As a major shareholder in the JV, we are grateful for the support of the EBRD.”
The partners in the JV company are; ArcelorMittal Zenica with 50% of shares, City of Zenica with 20%, and KPA Unicon and FinnFund each holding 15% of the company.
Mr Nikhil Mehta, Chief Executive of Toplana Zenica, commented:
“Toplana Zenica d.o.o. was incorporated on 16th January, 2019 and work on new boiler production is going well. Other contracts are in the final stages. At this point in time, the signing of the loan agreement with EBRD is one of the biggest milestones in execution of the project. The total loan being provided is EUR 46 mil., of which EUR 5 mil. is a Green Energy loan. The balance is facilitated by Intesa San Paolo Bank & EBRD. The whole loan is secured by a guarantee from ArcelorMittal Group, and it ensures availability of resources for timely completion of the project.
The new power plant being built by Toplana Zenica will ensure compliance with environmental norms of EU, with SO2 emissions reduced by up to 90%. We expect the project to be completed by H1-2020.”
