Bosnia:65MEUR loan from KfW bank for 36MW wind park

, SEE Energy News

Council of Ministers BiH accepted the initiative of the Ministry of Finance and Treasury and appointed a delegation for the negotiations for the conclusion of the Loan Agreement and the Project Agreement between KfW and BiH, Federation of BiH and “Electric Power Industry of Bosnia and Herzegovina” in the amount of EUR 65 million to finance the construction of wind plant “Podveležje”, with a capacity at least 36 MW.

Implementation of the project would increase the diversification of energy resources, and the project outcome would be reflected in pure energy in the electric power network of BiH. The project is planned through the creation of new jobs during and after construction, to encourage economic growth in BiH, while at the same time it would contribute to the protection of the global climate by restraining carbon emissions.

The project was planned for the period 2013-2016. The entire amount of the loan is allocated to the Federation, the repayment period is 15 years, including 3 years of grace period. The interest rate will be determined on the date of signing the agreement. The current interest rate is 2.5%, according to a statement of the Information Office of the Council of Ministers BiH.

Source; Serbia Energy see desk/CMBiH