Radovan Viskovic, the Prime Minister of the Republic of Srpska, said that the German bank KfW did not declare its intention to halt investments in the RS and remains committed to the continuation of the Hrgud wind farm project.
Viskovic said that the bank has not provided written confirmation of the German government’s decision to suspend investments in the RS. According to him, in verbal correspondence, the bank expressed its reluctance to follow the government’s decision and insisted on continuing the project. RS authorities requested their position in writing, but they asked for some time for consultations, he said, adding that investors often do not support political decisions.
He emphasised that the RS always has alternatives and has never depended solely on one country.
Last month, the German Government decided to stop the financing of four infrastructure projects in the RS, worth 105 million euros, due to separatist statements and moves made by RS President Milorad Dodik.
Among the four projects that were to be financed by Germany are two energy projects: the construction of the Hrgud wind farm, the first such facility in RS, and the reconstruction of hydropower plant Trebinje.
The German Development Bank 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 euros from the KfW.