The 400kV overhead transmission line (OHL) from Kragujevac 2 Substation to Kraljevo 3 Substation is an infrastructural project which is included in all strategic documents in the field of energy of Serbia and south-eastern part of Europe. This project contributes to the development of the entire 400kV network in central and western Serbia. The planned overhead transmission line is, as a strategically important project, included in the Bill on Determining Public Interest and Special Procedures of Expropriation and Acquisition of Documentation for the Realization of the Construction of the 400kV Electrical Power Transmission System “Trans-Balkan Corridor – Stage One”. This Project represents a strategic investment of regional and pan-European significance.

The Republic of Serbia borders eight countries in the heart of the Balkans. Because of its geographical position, Serbia’s transmission network represents a vital link among the transmission systems of the region for purposes of creating a market and increasing efficiencies for the regional system. When completed, the Transbalkan Corridor will significantly strengthen the critical northeast-southwest and east-west regional and pan- European corridors which are some of the most congested transmission corridors in the Southeast Europe region.

Because of this importance,

• The Project is part of the pan-European ENTSO/E TYNDP2014, RgIP2015 and National TYNDPs.
• All sections of Transbalkan corridor – I phase are labelled as PECI-Project of Energy Community Interest, as they will strengthen national transmission network and specific interconnections, facilitating the creation of national and regional electricity markets.
• The Project is a part of the national Single Project Pipeline, which was formed according to the methodology for the selection and prioritization of the infrastructure projects.
• The Project is in line with the EU Regional Development Strategy, which includes necessity to increase interconnection capacity and to further develop regional energy markets, and system flexibility and stability

Financing of the Project will be co-founded by loan based on a loan agreement with the German Development Bank KfW, Frankfurt am Main (and financial contribution from Western Balkans Investment Framework (ʺWBIFʺ) through its European Western Balkans Joint Fund (“EWBJF”) of European Western Balkans Joint Fund (“EWBJF”).