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Bosnia's Serb Republic to provide guarantees for 307 mln euro loans to power utility ERS

Author Iskra Pavlova
Bosnia's Serb Republic to provide guarantees for 307 mln euro loans to power utility ERS Source: Pixabay

BANJA LUKA (Bosnia and Herzegovina), July 12 (SeeNews) - Bosnia's Serb Republic government said it plans to provide state guarantees for loans worth 600 million marka ($345 million/307 million euro) to state-controlled power utility firm Elektroprivreda RS (ERS).

The proceeds of the loans will be used to support several key energy projects that should significantly raise the output and the stability of the energy system in the Republic, the entity's government said in a decision on the issuance of state guarantees in 2019 published on the website of the Republic's assembly.

Under the decision, the government plans to issue guarantees on an overall 800 million marka worth of loans to public companies this year. The Republic's assembly will vote on the decision on July 16.

In particular, the government plans to support a 300 million marka loan that ERS will take out for the construction of the Bistrica, Janjina and Buk Bijela hydro power plants, a 100 million marka loan for the revamp of the Gacko and Ugljevik coal-fired power plants and a 200 million marka credit for the construction of the Trusina solar plant in the southern municipality of Trebinje.

The remaining guarantees will be issued to state-run funds and hospitals, among others.

The Serb Republic, where ERS operates, is one of two autonomous entities forming Bosnia and Herzegovina. The other is the Federation.

(1 euro = 1.95583 marka)

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