Bosnia and Herzegovina: HPP Dabar construction contract soon

, SEE Energy News

In order to start the realization of one of the most important energy projects in Republic of Srpska, Prime Minister of the Republic of Srpska (RS) Radovan Viskovic and Chinese Ambassador to BiH Yi Ping said that the agreement on the construction of hydropower plant Dabar will be signed in the next few days.

PM Viskovic and Ambassador Ping discussed mutual project in the energy sector, with special reference to the financing and construction of HPP Dabar. They agreed that the conditions for removing all previous obstacles have been met and the contract will be signed soon. Last March, PM Viskovic said that signing of a an agreement on the construction of HPP Dabar with Chinese company has been delayed for a month due to coronavirus outbreak. In April 2019, power utility ERS announced that it has invited two Chinese companies to the second round of HPP Dabar, adding that the contract is expected to be signed in June. However, one of the participants – a Chinese-Slovenian consortium CNEEC-RIKO filed a complaint, after which part of the tender was annulled. In January 2019, Hidroelekrana Dabar, part of ERS’ subsidiary Hidroelektrane na Trebisnjici (HET), has launched an international tender for financing and construction of hydropower plant Dabar, a project worth some 188 million euros. The selected partner will be obliged to build a dam with embankments and an accumulation basin, a surge tank, a machine house, two 200 kV transmission lines and a drainage channel. The preferred model of financing is a monetary loan with a 15-year repayment period and a four-year grace period. The project partner is expected to provide 85 % or more of the financing, while HET will provide up to 15 %. HPP Dabar will remain in HET’s sole possession following the construction which will last four years. Future HPP Dabar is a part of hydroelectric system Gornji Horizonti, its planned power output would be 166 MW, its annual electricity generation should be about 250 GWh. It is expected that the construction will be completed within four years.