You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Bosnia signs 60 mln euro loan deal with KfW for Hrgud wind farm

Author Maja Garaca
Bosnia signs 60 mln euro loan deal with KfW for Hrgud wind farm Wind turbines. Photo by: Burcote Wind (www.burcotewind.com).

BANJA LUKA (Bosnia and Herzegovina), November 8 (SeeNews) – Bosnia's finance minister Vjekoslav Bevanda signed on Wednesday a 60 million euro ($69.6 million) loan deal with German development bank KfW to finance the construction of the Hrgud 48 MW wind farm.

The loan has been allocated to Bosnia's Serb Republic, while the project will be implemented by the entity's energy utility Elektroprivreda Republike Srpske, Bevanda said at a news conference in Sarajevo following the signing ceremony.

The fixed-rate loan has a repayment period of 15 years, with a grace period of four years.

The wind farm, with an estimated annual net production of some 126 GWh, will spread on an area of nearly five square kilometers and should be completed within the next four years.

Vjekoslav Bevanda also signed a 13.5 million euro grant agreement with with KfW to finance a wastewater project in the city of Zenica.

Zenica has already secured 4.75 million euro for the project from the Swiss government. The project foresees the continued construction and reconstruction of the main wastewater collectors in Zenica, as well as the construction of a wastewater treatment plant, and the complete separation of urban waste water from industrial wastewater.

Zenica is the fourth-largest city in Bosnia and Herzegovina, and the administrative centre of the Zenica-Doboj Canton located in one of Bosnia's two entities, the Federation. The other is the Serb Republic.

Elektroprivreda Republike Srpske operates in the Serb Republic, while Elektroprivreda HZHB and Elektroprivreda BiH operate in the Federation.

($=0.861669 euro)

Compare