Minister of Industry, Energy and Mining of the Republic of Srpska (RS), Petar Djokic said that the construction of hydropower plant Buk Bijela will start in 2018, adding that the estimated value of the project is about 200 million euros and that the plant will be 100 % owned by the state power utility ERS.
Minister Djokic stressed that two Chinese companies have already expressed interest in this project and have prepared offers for its realization. He reminded that besides this project, ERS is also involved in the construction of HPP Dabar and the construction of TPP Gacko 2.
Last July, The Ministry of Industry, Energy and Mining of the Republic of Srpska (RS) announced that it has signed a Memorandum of Cooperation on the construction of HPP Buk Bijela with the Chinese state-owned company China National AeroTechnology International Engineering Corporation.
In June 2016, the contract on the concession grant for the construction and operation of 93.52 MW HPP Buk Bijela between the RS Government and the consortium which consists of power utility ERS and its subsidiary ―Hidroelekrane na Drini‖ has been signed. The concession is granted for a period of 50 years and the estimated value of the investment is around 195 million euros. The concession includes the preparatory period of 12 months from the day of contract signing. The preparatory period includes the development of the project documentation and obtaining all necessary permits, followed by the investment of some 21.5 million euros.
So-called Upper Drina project consists of HPP Buk Bijela, HPP Foca, HPP Paunci and HPP Sutjeska. According to original plans, overall power output of all four HPPs should be 238 MW, while annual electricity generation should reach 800 GWh (HPP Buk Bijela – 115 MW, HPP Foca – 52 MW, HPP Paunci – 36 MW and HPP Sutjeska – 35 MW). According to the studies, two HPPs on Drina river should be built in 5 and 6 years, while overall investment in the construction of all four HPPs would reach 460 million euros.