The Government of the Republic of Srpska has signed an agreement with Chinese company AVIC on financing the construction of three hydropower plants on the Bistrica river, a tributary of the Drina.
The agreement on financing the construction of hydropower plants on the Bistrica river near the town of Foca, which includes a EUR 75 million loan, was signed by Republic of Srpska Prime Minister Radovan Viskovic and representatives of China’s AVIC-ENG – China National Aero-technology International Engineering.
The hydropower project, with a total capacity is 36 MW, is valued at EUR 102 million.
According to Viskovic, the agreement pertains to the project’s financing, given that Elektroprivreda Republike Srpske (ERS) has already invested EUR 30 million in its implementation. The Chinese company has also invested in construction work, the prime minister added.
Viskovic: the hydropower plant will be online in two years
The Chinese company, he noted, has been working on the sites of the three future power plants for two years. More than eight kilometers of tunnels have been excavated, Viskovic said, announcing that the project will be completed ahead of schedule and that the hydropower plant will be operational in two years.
According to Viskovic, the loan agreement envisages a repayment term of 15 years, with a grace period of four years. During the grace period, the three power plants will be built, which will then generate profit for loan repayment, he explained.
The loan is provided by the Export-Import Bank of China (China Exim Bank). The prime minister described it as very favorable, with an interest rate of about 4%.
“We are now entering the phase of drawing funds from the loan to proceed with the implementation of the project,” said Viskovic.
AVIC: sufficient funds are available to complete the project
The manager of AVIC’s branch in Foca said there will be enough money to complete the project and that the signing of the agreement is an important step in its implementation.
The project will benefit the Republic of Srpska by providing green energy, which will ensure energy stability, according to him.
The meeting was attended by the Republic of Srpska’s Minister of Finance, Zora Vidovic, and Minister of Energy and Mining, Petar Dokic.
The project to build three hydropower plants on the Bistrica has faced numerous challenges over the years. Five years ago, Prime Minister Viskovic announced that an agreement had been reached with a Chinese company on the construction of the three power plants.
ERS invited bids for financing the works in April 2021, but it was only a year later that it obtained a EUR 15.3 million loan from UniCredit Bank.
(balkangreenenergynews.com, December 19, 2024)
