Bosnia: EBRD approved 35MEUR loan to state power utility for HPP “Vranduk” and HPP “Kostela”

Published on 24. September 2013., SEE Energy News

European Bank for Reconstruction and Development (EBRD) has approved the Public Enterprise “Electric Power Industry of Bosnia and Herzegovina” 35 million euros loan for the projects construction of HPP “Vranduk” and the rehabilitation and capacity expansion of HPP “Una Kostela.”

The loan was granted at favorable credit terms, after meeting all the necessary economic, technical and environmental preconditions, announced the “Electric Power Industry of Bosnia and Herzegovina.”

Out of the approved amount, for the construction of HPP “Vranduk” is planned € 26 million, while for HPP “Una Kostela” is planned 9 million.

After prior approval, which fot the loan provided the Federation of Bosnia and Herzegovina, in compliance with the Law of debt, borrowing and guarantees in the Federation of BiH, their consent should be given also of the Parliament of FBiH.

General Director of “Electric Power Industry BiH” Elvedin Grabovica expects positive votes of Parliament, allowing them to instantly access the signing of the Agreement with EBRD.

This is followed by selection of technical consultant for HPP “Vranduk” and then tender for the works and services. At the same time will commence the execution of the preparatory works that “Electric Power Industry of Bosnia and Herzegovina” finances from its own resources.

FBiH Parliament Representatives will on 24 September discuss the draft decision on granting prior approval for credit debt of “EPI of BiH” from EBRD.

This company will for providing additional power for the existing plant “Una Kostela,” reconstruct parts of HPP “Una Kostela,” which is running since 1954, with an increase in capacity from 9.4 to 14.6 megawatts.

Continuation of reconstruction of HPP “Una Kostela” will be an important step in solving the shortage of energy sources in the Una-Sanski Canton, as well as problems related to voltage oscillation and power flows in the power system in the Canton of Sarajevo, stated in the announcement.

Source; Serbia Energy See desk