Bosnia: Energy utility EPBiH lost 1MEUR grant from EU for wind park

Published on 29. October 2013., SEE Energy News

Because of non-compliance and failure to fulfill obligations, “Electric Power Industry of Bosnia and Herzegovina” has lost 1 MEUR grant from the European Commission. The money was to be used for the construction of a wind farm Podveležje. Instead of grants, “Electric Power Industry of Bosnia and Herzegovina” is now seeking loans.

From the “Electric Power Industry of BiH” a number of reasons are presented, ast hey say, they were not able to use 1 MEUR donated by the EC. Among other things, that was the lack of zoning and building permits, then permission of „Elektroprenos“ and the Independent System Operator in Bosnia and Herzegovina (NOS) for connection to the network of the energy system.

Without the connection, the constructed wind turbines, they say, would be useless. It is unclear why the “Electric Power Industry of Bosnia and Herzegovina” waited more than two years to obtain the necessary documents, and thus exceeded even further limits set by the EC.

– Making a single turbine and waiting for the other is very expensive. They provided about 30% of the value of a wind turbine, and in order to take advantage of one million euros from the EC, electric power industry needed to spend an additional 7 to 8 MEUR, which would be very unprofitable. Moreover, we do not have permission to connect to the system – said the director for capital investment of “Electric Power Industry BiH” Amil Kamenica.

Former director claims that zoning permit existed, and that it arrived at the “Electric Power Industry of BiH” on 31 May 2011. The question is why the new management has not previously initiated negotiations with “Elektroprenos”.

– I can say that only in January of this year, we get the conditions for the study of the connection from NOS and Elektroprenos, and based on that we will get the connection permit – said the director of “Electric Power of BiH” Amil Kamenica.

Jerlagić believes that the new management has not continued the old project and facilitated the job for political reasons, because for new policy it wasn’t appropriate to make a project that wasn’t exclusively theirs. In addition, the “Electric Power Industry of Bosnia and Herzegovina” is looking 65 MEUR for the same project now.

We remind, that BiH Presidency, because of its lack in the agreement on the debt of “Electric Power Industry BiH”, did not approve this document that is supposed be signed by Foreign Minister Zlatko Lagumdzija and Finance Minister Nikola Spiric.

Source; Serbia Energy See desk