Bosnia: Power utility gets 35MEUR from EBRD for new HPPs power generation facilities, SEE Energy News
“BiH Power Utility Company” gets 35 MEUR for HPP “Vranduk” and “Una Costela”. General Director of “BiH Power Utility Company” Elvedin Grabovica and office director of the European Bank for Reconstruction and Development in BiH Libor Krkoska signed on 30. October 2013)in the presence of Nermin Niksic, the Prime Minister of FBiH, the Loan Agreement for the project implementation of HPP “Vranduk” construction and expansion of HPP “Una Costello’s” worth 35 MEUR.
The money was approved after meeting all necessary economic, technical and environmental preconditions. EBRD loan of 35 MEUR is the first corporate credit approved to PE EPBiH without the state intervention and state guarantees.
This is also the first credit of “BiH Power Utility Company” for the construction of new electric power facilities in the last 30 years. Of the approved amount 26 MEUR is planned for the construction of HPP “Vranduk”, while 9 MEUR is planned for HPP “Una Costela”.
-The EBRD loan will significantly enhance the credibility and reputation of the PE EPBiH on the financial markets, while the partnership with the EBRD, which includes stricter rules of corporate governance and financial discipline, financing environmentally and socially sustainable projects, will strengthen our position in the implementation of other capital projects – said Grabovica.
Grabovica also pointed out that the loan which EPBIH received from EBRD is also an incentive for other financial institutions for direct involvement in the implementation of development plans for PE EPBiH.
On cooperation with the PE EPBiH, Libor Krkoska, office director of the European Bank for Reconstruction and Development (EBRD) in Bosnia, said that the loan represents the first major capital investment in the sector of renewable energy sources in the PE EPBiH over the past 30 years.
– Removal of inefficient production facilities and energy sector reform remain key challenges for BiH. This investment is to address both issues and enable BiH to use its extraordinary hydropower potential.
HPP “Vranduk” is planned as a derivative flow facility with more objects that will functionally constitute one unit. Total power of HPP “Vranduk” amount to 19.63 MW and the planned annual production is 96.38 GWh.
In order to provide additional power from existing plant “Una Costella”, PE BiH Power Utility Company will reconstruct parts of the flow hydropower plant with capacity increase from 9.4 MW to 15.8 MW. Expanding the capacity of the new agregate, the average annual production will be increased by an additional 21.422 GWh.
As stated on the website ” BiH Power Utility Company”, the projects importance is multiple – reducing emissions of CO2 and other pollutants, the production of so-called green energy, contributing to the economic and commercial development of the Zenica-Doboj Canton, while the expansion of HPP “Una Costella” will be an important step in addressing the shortage of energy sources in the Una-Sana Canton, as well as problems related to voltage fluctuations and trends in the electric power system in the Canton area.
Source; Serbia Energy See desk/EPBiH