The German Government decided to stop the financing of four infrastructure projects in the Republic of Srpska, worth 105 million euros, due to separatist statements and moves made by President Milorad Dodik.
These projects include the construction of the Hrgud wind farm and the reconstruction of a hydropower plant at Trebinje. In 2022, Germany decided to temporarily suspend the financing for these projects.
The German Development Bank (KfW) committed to a loan in the amount of 60 million euros for the Hrgud wind farm project, which would cover the majority of the costs, with state-owned power utility ERS covering only the remaining 4 million euros. The HPP Trebinje revitalization project was to be financed through a loan from the German Government in the amount of 4 million euros and another 6 million euro loan from KfW.
RS authorities claim that new sources of financing for these projects will be found soon, expecting high interest from Chinese banks and companies.