SARAJEVO (Bosnia and Herzegovina), May 24 (SeeNews) – The government of Bosnia's Sarajevo Canton said it has signed a 30-year concession contract with Suzlon Wind Energy BH for the construction and operation of a wind farm in the town of Hadzici.
The cost of construction works is estimated at 30 million euro ($35.2 million), the cantonal government said in a statement on Wednesday, following the signing of the contract.
The wind farm in Hadzici will consist of 12 wind turbines with an installed capacity of 2.1 MW each.
The concession contract can be renewed for up to 15 years, the cantonal government noted.
Suzlon Wind Energy BH, based in Bosnian capital Sarajevo, is a subsidiary of Indian renewable energy solutions provider Suzlon Energy Ltd, which is present in 18 countries worldwide.
"The project has more than one benefit. At the annual level we will receive 25 MWh of clean energy", the cantonal economy minister, Muharem Sabic, said. "On the other hand, we will protect the environment. There is also the economic benefit of this project for the Sarajevo Canton and the local community, which is measured by tens of millions of marka, whereas new jobs will also be opened."
As much as 60% of the concession fee will go into the budget of the municipality of Hadzici, while 40% will be directed into the cantonal budget.
The construction of the wind farm is expected to begin in a year.
The Sarajevo Canton is one of 10 cantons of the Federation of Bosnia and Herzegovina, one of two entities in the country. The other is the Serb Republic.
($=0.852421 euro)