Bosnia and Herzegovina: RiTE Ugljevik’s urgent loan tender

, SEE Energy News

TPP Ugljevik provides about a third of electricity in the Republic of Srpska.

Coalmine and thermal power plant (RiTE) Ugljevik, a subsidiary of Bosnian power utility ERS, urgently needs funds in order to stay liquid, therefore the management launched a tender for obtaining a loan worth 2.3 million euros from commercial banks.

Tender is divided into two lots, one for 1.3 million euros loan and the other for 1 million euros loan. For both loans, RiTE Ugljevik is prepared to pay servicing fees up to 80,000 euros and the loans should be repaid in 12 monthly installments. The deadline for submitting offers is 23 April.

RiTE Ugljevik recorded a net profit in the amount of some 760,000 euros in 2020, compared to a loss of 2.2 million euros in 2019. The company’s revenues in 2020 increased by 1.1 % year-on-year and amounted to 72.6 million euros, while its total expenditures rose by 0.8 % to 71.7 million euros. In late 2020, RERS approved 15 % higher purchase price of electricity for RiTE Ugljevik. According to initial estimates, annual revenues from electricity sales of RiTE Ugljevik will reach over 29 million euros, which is by some 3.5 million euros more than before. However, the producer’s initial request was not entirely fulfilled because they asked for an increase of 20 %.