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SARAJEVO (Bosnia and Herzegovina), July 25 (SeeNews) - Bosnia's Federation parliament said it has approved a 10 million euro ($11.1 million) loan from the European Bank for Reconstruction and Development (EBRD), to be used to finance an energy efficiency project.
The proceeds of the loan will be used to finance a project for improving the energy efficiency of the public hospital building in Zenica, Bosnia's fourth largest city, the Federation parliament said in a statement last week.
The Federation's government approved the loan in July 2018, saying it will support the construction of a thermal energy unit at the hospital
The EBRD said at the time that the investment will save energy, reduce CO2 emissions and improve air quality in Zenica, one of the largest and most polluted cities in Bosnia.The EBRD loan will be complemented by a 1 million euro investment grant under the Regional Energy Efficiency Programme for the Western Balkans (REEP). The investments, together with comprehensive energy efficiency measures, will result in energy savings of more than 60% and the reduction of CO2 emissions by up to 80%.
News agency eKapija.com reported on Wednesday that the loan will be repaid in 12 years with a three year grace period. It will carry an interest rate of six-month EURIBOR plus 1%.
The Federation is one of two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.