Bosnian entity signs MoU with China's Ex-Im Bank for new unit at TPP Tuzla

The MoU, signed by the Federation's finance minister Ante Krajina and Ex-Im chairman Li Ruogu at a China/CEE summit in Belgrade, will serve as a basis for accelerating the procedure for the approval of the 667.8 million euro ($822.3 million) Chinese loan that is being sought to finance the construction of the new unit, EPBiH said in a statement.

The construction of the new unit will start as soon as the government and parliament of the Federation entity give their approval for the new loan, which should cover 85% of the total cost of the TPP's Unit 7.

Ex-Im Bank is currently reviewing the application for the loan which will be guaranteed by the Federation's government.

A consortium of China's Gezhouba Group Company Limited and Gunagdong Electric Power Desing Institute has been selected as 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.

EPBiH, based in the Federation, is the largest of Bosnia's three power utilities. Elektroprivreda HZHB, the smallest of the three, is also based in the Federation. Elektroprivreda RS is the power utility of the Serb Republic.

(1 euro=1.95583 Bosnian marka)