BiH Federation Government approved a decision on acceptance of FBiH responsibilities under the Finance Contract between European Investment Bank (EIB) and Bosnia and Herzegovina for the Project “Renewable Energy in HPP Vranduk” in the amount of 37.5 MEUR for PE BiH Electric Power Industry j.s.c. Sarajevo.
The primary objective of this project is to contribute to the overall reduction of C02 emissions and other pollutants, improving the overall ratio of energy produced in hydro and thermal power plants of BiH Electric Power Industry, and contribution to the economic development of the BiH Federation, said the Office of Public Relations of FBiH Government.
The loan has a maturity period of 25 years with an option to postpone the payment of the first installment of up to six years.
On the basis of credit, BiH Federation will transfer funds to the BiH Electric Power Industry as the end user and the debtor under this credit obligation.
The conditions for signing the Subsidiary Loan Agreement between BiH and FBiH were created by the adoption of this decision, and then the Subsidiary between FBiH and BiH Electric Power Industry.
The decision will be submitted to FBiH Parliament for approval.