The European Bank for Reconstruction and Development (EBRD) is evaluating financial support for a major electricity network upgrade in Bosnia and Herzegovina. The proposed funding would come in the form of a sovereign-backed loan of up to 38 million euros for the distribution utility Elektrokrajina, a subsidiary of state-owned Elektroprivreda Republike Srpske (ERS).
If approved, the financing would contribute to a broader infrastructure project estimated at around 43.2 million euros. The initiative focuses on modernizing sections of the electricity distribution system, particularly medium- and low-voltage networks and substations.
The planned upgrades aim to improve the reliability and quality of electricity supply while also addressing technical losses within the distribution network. Another key objective of the project is to prepare the grid for a higher share of decentralized renewable energy sources.
Upgrading the infrastructure would allow the system to better accommodate distributed generation, such as solar installations, which are becoming increasingly important for the region’s energy transition.
According to project documentation released by the bank, the financing proposal is currently under consideration, with a decision on approval expected in mid-May. If endorsed, the loan could receive final approval from the EBRD board on 13 May.
