BANJA LUKA (Bosnia and Herzegovina), February 22 (SeeNews) – Serbian state-run power distributor Elektroprivreda Srbije (EPS) plans to expand in the region by purchasing a stake in the power utility of Bosnia’s Serb Republic, Elektroprivreda RS (ERS), according to media reports published on Wednesday.
Serbia's government has put together a team to analyse the feasibility of acquiring power distributors in neighboring countries, including ERS and Montenegro's Elektroprivreda Crne Gore (EPCG), novosti.rs reported.
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EPS's aim is to develop hydroelectric power generation, which is why the Serb Republic's utility is particularly appealing.
By purchasing a stake in ERS, Serbia and Bosnia could speed up work on several joint projects including the construction of three hydro power plants (HPPs) on the Drina river, novosti.rs quoted Branko Kovacevic, chairman of the supervisory board of EPS, as saying.
The investment is worth 870 million euros ($914.1 million).
The purchase of ERS, which Kovacevic deems financially worthwhile, could mirror the takeover of the Serb Republic's telecommunications provider, Telekom Srpske, ten years ago, Kovacevic added.
Back then, Serbia's Telekom acquired 65% of Telekom Srpske for 646 million euro via an international tender.
ERS is the power utility of Bosnia's Serb Republic, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Federation.
Bosnia has another two power utilities - Elektroprivreda HZHB and Elektroprivreda BiH (the largest of the three), both based in the Federation.
($=0.951742 euro)