SARAJEVO (Bosnia and Herzegovina), March 11 (SeeNews) – The government of Bosnia's Muslim-Croat Federation said it has approved the text of a letter, set to be addressed to the prime minister of China on behalf of Bosnia’s Council of Ministers, seeking support for the construction of Unit 7 at thermal power plant (TPP) Tuzla.
The government has also obliged Bosnia’s power utility Elektroprivreda BiH (EPBiH) to continue negotiations with China’s Ex-im Bank towards securing a loan for the construction of a 450 MW unit at the existing 715 MW Tuzla power plant, the Federation’s government said in a statement on Thursday.
The project is valued at 722 million euro ($802.4 million) and represents Bosnia’s biggest post war investment.
In December, EPBiH said it plans to launch works on the plant in 2016.
In 2014, the Federation signed a memorandum of understanding (MoU) with Ex-Im Bank for the financing of the new plant. Prior to the MoU, the Federation said it has selected a consortium of China's Gezhouba Group Company Limited and Gunagdong Electric Power Desing Institute as the preferred bidder for the construction of Unit 7.
The Federation is one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.
($=0.8994 euro)