The Electric Power Industry of Serbia (EPS) and Italy’s Seci Energia have signed an agreement for the construction of hydroelectric power plants.

Serbian Minister of Energy and Mining Petar Skundric told Serbia Business that the hydro power plants, with a total capacity of 300MW, will be constructed on the middle reaches of the River Drina.

Energy from the plants, worth €800m ($1bn), will be transferred through Serbia and Montenegro and then through underwater cables to the Adriatic Sea and to Italy.

EPS director general Dragomir Markovic told Serbia Business that the power projects are expected to produce 1,200GWh per year and plans to include Republika Srpska, a political entity in Bosnia and Herzegovina, in the project.