Bosnia and Herzegovina: Recapitalization of HE Dabar on hold

, SEE Energy News

Earlier this month, “Hidroelektrane na Trebisnjici” (HET) Supervisory Board requested for a new recapitalization of “HE Dabar” in the amount of 21.5 million euros. The Shareholders’ Assembly of HET, a subsidiary of power utility ERS, removed from the agenda of its next meeting the item related to the recapitalization of “HE Dabar” with 21.5 million euros, because the Government of the Republic of Srpska (RS) has not yet considered that decision and gave its consent. The stated financial contribution of HET represents an investment with the aim of increasing the share capital of “HE Dabar “, all for the purpose of the project for the construction of this hydropower plant. In the request for recapitalization of “HE Dabar”, the company stated that out of the requested amount, some 11 million euros will be invested in the tunnel, 9.5 million euros in expropriation and the remaining amount in obtaining permits and paying concession fees.

“HE Dabar” is requesting this recapitalization after a new financial analysis of the project’s financing has been done, in which a new value of the investment of some 170 million euros has been determined. 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 early 2021, Prime Minister Radovan Viskovic said that the contract with a Chinese partner will be signed soon. 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.