Bosnia: KfW approved a 65 MEUR loan to the power utility company for wind park project

Published on 8. January 2014., SEE Energy News

The German Development Bank (Kreditanstalt für Wiederaufbau – KfW) has approved the energy company of Bosnia PC Elektroprivreda BiH a loan to finance the construction of a wind farm Podvelezje, amounting to 65 MEUR within the framework of development cooperation between Germany and Bosnia-Herzegovina.

The loan repayment period is 15 years, including 3 years of grace period. Total costs of building a wind farm Podvelezje are estimated at 71.80 MEUR. With a loan from KfW, the construction will be funded with 6.8 MEUR of its own funds of PC Elektroprivreda BiH.

The loan was signed between KfW and Bosnia and Herzegovina represented by the Ministry of Finance and Treasury, and the Federation represented by the Federal Ministry of Finance and PC Elektroprivreda BiH, as the end user.

In accordance with the Law on Conclusion and Implementation of International Agreements, the Loan Agreement was approved by the Parliament of the Federation of BiH, the BiH Presidency and the Parliamentary Assembly will ratify it.

In order to intensify the project, the Government of Germany through KfW has approved in the past to PC Elektroprivreda BiH also grant funds for the Study of the zero state of birds and bats in the area of ​​the project site of a wind farm Podvelezje.

Construction of a wind farm Podvelezje with 16 wind turbines of total power up to 48 MW, and possible annual electricity production up to 100 GWh, is planned on the plateau Podvelezje on microlocations Mali grad and Svetigora, at about 760 meters above sea level.

For this project, PC Elektroprivreda BiH was granted a concession period of 30 years. Windfarm Podvelezje has been recognized as one of the projects that provide support for environmental protection and energy efficiency and it is among strategic goals of PC Elektroprivreda BiH, it was released from the company.

Source; Serbia Energy See desk