KfW will also donate 1.0 million euro to the Mesihovina project with the Federation government providng a further 6.0 million euro, the government said in a statement after its regular weekly session.
The wind park, to be located in the western municipality of Tomislavgrad, will comprise 22 wind turbines with a combined installed capacity of 44 megawatts, the statement said.
The expected output is 128,527 megawatthours a year, it added.
In August, Bosnian media reported that local power utility Elektroprivreda HZ HB was awarded a concession on the construction of the Mesihovina wind farm and that production should start by 2012.
Elektroprivreda HZ HB, the smallest of Bosnia’s three power utilities, buys 50% of the electricity it needs to satisfy the needs of 36 municipalities in the Muslim-Croat Federation, where it operates.
Elektroprivreda BiH is the biggest power utility, which also operates in the Federation, one of Bosnia's two post-war autonomous parts. Elektroprivreda RS is the power utility of the Serb Republic, the other autonomous part of Bosnia. The two utilities regularly sell the electricity surplus they have.
($=0.6684 euro)