Bosnia: Gov approves loan of 30 million euros for HPP “Janjići” from KfW bank

, SEE Energy News

BiH Council of Ministers determined Proposal of Loan Agreement and project between KfW, Frankfurt am Main, Bosnia and Herzegovina. Bosnia and Herzegovina is represented by the Ministry of Finance and Treasury (the borrower) and the Federation of Bosnia and Herzegovina, represented by the Federal Ministry of Finance and the “Electric Power Industry of Bosnia and Herzegovina” (Executing Agency of the project) in the amount of  30 million euros for HPP “Janjići”.

HPP “Janjići” in the wider area of Zenica will produce “clean” energy, using renewable hydropower potential of the river Bosna, which will contribute to reducing pollution and providing a unique contribution in protecting the climate and the environment. The capacity of this power plant will be 13.2 MW, which creates the conditions for obtaining  additional 68 GWh of electricity per year.

The construction of this power plant presents the fulfillment of the requirements from the Contract of Establishing the Energy Community of South East Europe. Estimates suggest that in its construction will be hired hundreds of people and indirectly many more, which will have a positive impact on increasing employment and economic growth in BiH.

The project will be financed by a loan worth 30 million euros allocated to the Federation of Bosnia and Herzegovina, with repayment period of 15 years and a grace period of four years.

The Ministry of Finance shall submit a proposed agreement with the grounds for its conclusion to the Presidency of BIH for further procedure; for the bh’s signer is proposed  Minister Nikola Spiric,  it is said in the statement the Council of Ministers.

Source; Serbia Energy See Desk

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