Hidroelektrane na Drini, part of Bosnian Serb power utility ERS, is preparing another recapitalisation of project company HE Bistrica as financing requirements continue to build around the long-running hydropower development.
The latest proposal would convert around €11 million of short-term loans into permanent capital. Shareholders are expected to consider the measure at an extraordinary meeting alongside amendments to the company’s founding documents.
The move follows a €7 million capital injection completed at the end of February. Earlier increases included around €2 million in 2020, €21 million in 2022 and €11 million in 2023.
The funding is intended to support implementation of the Bistrica hydropower construction contract with China’s AVIC.
The overall investment is now valued at around €170 million excluding VAT, significantly above earlier construction estimates of roughly €102 million. Previous financing plans envisaged about €75 million from China’s Export-Import Bank, with ERS providing the remainder.
The repeated capital increases underline the financial demands of bringing the project through construction after years of ownership and development changes. ERS sold HE Bistrica to Kaldera in 2008 for around €3.5 million, before buying it back in 2019 for almost €11 million.
