May 26 (SeeNews) - Bosnia's Sarajevo canton government said it has approved the country's plans to borrow 8 million euro ($8.8 million) and receive as grant 2 million euro from the European Bank for Reconstruction and Development (EBRD), to be used for an energy efficiency project.
The Sarajevo canton and Bosnia's Federation will sign afterwards a subsidiary agreement to allocate the proceeds to the canton.
The loan has a tenor of 13 years, a grace period of three years, and carries a six-month Euro Interbank Offered Rate (EURIBOR) interest rate plus 1% annual margin, the canton government said in a press release last week on Thursday.
The project's goal is to introduce energy efficiency measures in some 40 public buildings - schools, hospitals, kindergartens - including cleaner and more efficient heating, better isolation and illumination.
The project is expected to save some 863,000 euro in total per year, or in other words, decrease energy consumption by 50% per building, the press release read.
The Sarajevo canton is one of 10 cantons forming the Federation, which is one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Serb Republic.
($ = 0.9134 euro)