Bosnia and Herzegovina: A loan for Vlasic wind farm project

, SEE Energy News

In 2020, FBiH Government supported the initiative to secure 72 million euros needed for the construction of wind farm Vlasic through a loan obtained from the European Investment Bank (EIB) and German Development Bank (KfW) and tasked the Ministry of Energy Mining and Industry and power utility EPBiH to start negotiations with the two banks regarding the loan. The Council of Ministers of Bosnia and Herzegovina (BiH) adopted the proposal of the Ministry of Finance and Treasury and appointed a delegation to conduct negotiations for the conclusion of the financing agreement between BiH and German Development Bank (KfW) in the amount of 36 million euros for the purpose of the construction of wind farm Vlasic. Similar proposal regarding the financing from the European Investment Bank (EIB) was adopted in November 2020.

The concession contract for Vlasic wind farm was signed between EPBiH and Middle Bosnia Canton (MBC) in late 2011. The concession was granted in period of 30 years, with extension option, where the annual concession fee was set at 1.5 % of overall electricity sales. The wind farm would consist of 10 wind turbines with combined installed capacity of 50 MW, generation about 115 GWh of electricity per year. It was initially estimated that the wind farm would be operational in 2019 and that the construction would cost up to 70 million euros.