The City of Novi Pazar is planning to build a biomass heating plant at a cost of around €3.6 million.
On 7th August 2018, members of the local parliament adopted a decision to purchase plots for the construction of the plant from the now bankrupt, state-owned holding company Raska.
According to Assistant Mayor, Faruk Suljević, the City will simultaneously work on producing a preliminary design plan and other documentation in order to obtain a construction permit by the end of 2018, as reported by Radio Sto Plus. After that, it is expected that the Ministry of Mining and Energy and the Public Investment Management Office will launch a tendering procedure and select the contractor. If all goes to plan, construction works could start in spring 2019 and be completed in around five or six months.
The project is part of a wider plan to build ten biomass heating plants in Serbia costing €27 million, of which €20 million is financed with a loan from German development bank KfW, which is also providing a €2 million grant, and a €5 million grant from the Government of Switzerland. Other municipalities involved in the project include Mali Zvornik, Nova Varoš, Prijepolje, Bajina Bašta, Valjevo, Priboj, Kladovo and Majdanpek.