Bosnia and Herzegovina, ERS is in demand for a revolving loan in the amount of 3.5 million euros

, SEE Energy News

Bosnian power utility ERS is seeking a revolving loan in the amount of 3.5 million euros, for which it is prepared to pay for interests and other costs up to 150,000 euros.

According to ERS, it is borrowing in accordance with the Special Decision on initiating the procedure of procurement of credit indebtedness, made on 13 August this year, which will be included in the Public Procurement Plan only with a rebalance. The period of availability of loan funds is 12 months and the repayment period of revolving loans is 12 months. The contracting authority retains the possibility to make the loan payment even before the expiration of the 12-month period, without additional compensation.

The estimated value of the public procurement is up to 150,000 euros and the maximum effective interest rate should be 4.2 % fixed.

Last year, ERS had an open revolving credit line, which it used to provide part of the severance pay for employees of its electricity distribution subsidiaries. Since it wants to have an open revolving line at its disposal this year as well, it is necessary to carry out the procedures for the procurement of revolving loans again, said the statement from the company.

Subsidiaries of state-owned power utility ERS have not had better financial results for a long time than in the first half of this year, so the profit shown at the holding level is around 18.7 million euros. The three subsidiaries which operate hydropower plants made a profit of about 9.3 million euros, electricity distribution subsidiaries made a profit of around 4.1 million euros, while the parent company ERS had a profit of about 19 million euros.

Only the two subsidiaries operating coal-fired thermal power plants were operating at a loss, which was planned due to regular annual overhauls. Thus, RiTE Ugljevik recorded a loss of about 9.2 million euros and RiTE Gacko about 4.6 million euros.