Bosnia: “Electric Power Industry of BiH” achieved record production, revenue and profit in 2013

20. January 2014. / SEE Energy News

“Electric Power Industry of BiH” has achieved record revenue that exceeded 500MEUR in 2013, the profit is higher than the 20MEUR, and record production of electricity from 7471.96 GWh was generated – stated Director General of “Electric Power Industry of BiH “Elvedin Grabovica. As the master plan, tasks and challenges in 2014 Grabovica singled beginning of the construction of three new capital facilities (Block 7 – TPP Tuzla, HPP “Vranduk” , wind farm “Podvelezje”), the restructuring of the company in accordance with the new Law on Electricity and completion of the recapitalization of the mine.

He presented the preliminary results of the operations of the company in 2013 at a press conference in Sarajevo.

Grabovica said that last year, the investment in the mines continued, and all customers were regularly supplied with electric power. He estimated it was a happy and successful year behind them, noting that “Electric Power Industry of BiH” is ready to meet all the challenges, regardless of hydrologic conditions.

Last year, 5.5 million tons of coal was purchased, and the cost of coal for EPBIH was higher than 350 million KM. Grabovica said that, there was a slight rise in the price of coal, which provides better operation of the mine and working conditions of the miners.

– What made us declare 2013 the year of the investment in the mines and something on which we are particularly proud of is a program of recapitalization of mine. This administration has found the 12 million KM invested in mining through the recapitalization program, and at the end of 2013 we have invested more than 120 million KM, out of which we have invested close to 70 million KM in this year’s program of recapitalization, which created the basic conditions for increased productivity, improvement of mine operations and working conditions of miners – Grabovica said, adding that in addition to the above KM 120 million, further 70 million KM is currently in the process of contracting.

In addition to investments in mining, Grabovica said that around 138 million KM was invested in the “Electric Power Industry of BiH” in 2013.

– 60 million KM was invested in production facilities and more than 58 million KM in the distribution network. In the past three years, during the term of this management, more than 560 million KM was invested in power facilities – said Grabovica.

As the master plan, tasks and challenges in 2014 Grabovica singled beginning of the construction of three new capital facilities (Block 7 – TPP Tuzla, HPP “Vranduk” , wind farm “Podvelezje”), the restructuring of the company in accordance with the new Law on Electricity and completion of the recapitalization of the mine.

He emphasized that the main focus of this management in 2014 will be the launch of the capital investments.

– The biggest postwar investment is Block 7 Tuzla, of 450 MW, and the project value is 1.646 billion KM. We conducted the tendering process through an open competition where 12 companies have answered, of which the two companies remained in the final selection through two pre-qualification processes, and that have been consortium “China Gezhouba” and Japan’s “Hitachi”. Deadline for submission of final bids is the end of March, after which we will carry out the evaluation of their bids – added Grabovica.

In addition to Block 7, Project HPP “Vranduk” is most likely to start construction, with a total value of 127 million KM, for which funds have been provided by EBRD (loan of 26 MEUR), and for the rest it is being negotiated with the EIB. The final stage of preparation of tender documents and tender announcement is expected in March.

The third facility is wind farm capital “Podvelezje”, with a total installed capacity of 48 MW. The total project cost is estimated at 140 million KM, and the financing is fully secured by the German Development Bank (KfW). Preparation of tender documents is in the final stage and the tender announcement is expected at the end of March 2014.

Responding to a reporter’s question on electricity prices this year, Grabovica said that “Electric Power Industry of BiH” does not intend to apply for the launch of the tariff proceeding to FERC.

– For the price of electricity is responsible FERC, but according to information I have, I think they also will not initiate tariff proceeding in 2014 – said Grabovica.

Source; Serbia Energy See desk

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