Elektroprivreda Republike Srpske (ERS), the power utility of Bosnia's Serb Republic, signed a contract for a 30 million marka ($16.6 million/15.3 million euro) loan with UniCredit Bank Banja Luka which will be used for the construction of hydro power plants (HPPs) on the river Bistrica, local media reported.
UniCredit Bank Banja Luka submitted the most favourable offer in a tender for the bank loan, news provider Indikator reported on Thursday.
ERS in February launched a call for a bank loan with a term of one year and a fixed annual interest rate of up to 2.95%, news agency Ekapija reported at the time.
ERS plans to use the loan to settle financial obligations to hydro power producer Hidroelektrane na Drini, enabling the company to recapitalise its fully-owned unit Hidroelektrane Bistrica, according to the Ekapija report.
ERS owns 65% interest in Hidroelektrane na Drini.
In December, Hidroelektrane Bistrica launched the construction of three HPPs with an installed capacity of 39 MW on the river Bistrica, a project worth 103 million euro ($111.4 million).
The three HPPs are expected to produce 152 GWh of electricity per year. They will be built by China National Aero-technology International Engineering Corporation.
The Serb Republic is one of two autonomous entities that make up Bosnia and Herzegovina. The other one is the Federation.
(1 euro = 1.95583 marka)
Choose your newsletter by Renewables Now. Join for free!