Bosnia's Muslim-Croat Federation OKs 71 Mln Euro KfW Loan for Wind Farm Project

SARAJEVO (Bosnia and Herzegovina), November 18 (SeeNews) – Bosnia's Muslim-Croat Federation said it approved on Wednesday a 71 million euro ($106 million) low-interest credit from German development bank KfW for the construction of the Mesihovina wind farm.

KfW will also donate 1.0 million euro to the Mesihovina project with the Federation government providng a further 6.0 million euro, the government said in a statement after its regular weekly session.

The wind park, to be located in the western municipality of Tomislavgrad, will comprise 22 wind turbines with a combined installed capacity of 44 megawatts, the statement said.

The expected output is 128,527 megawatthours a year, it added.

In August, Bosnian media reported that local power utility Elektroprivreda HZ HB was awarded a concession on the construction of the Mesihovina wind farm and that production should start by 2012.

Elektroprivreda HZ HB, the smallest of Bosnia’s three power utilities, buys 50% of the electricity it needs to satisfy the needs of 36 municipalities in the Muslim-Croat Federation, where it operates.

Elektroprivreda BiH is the biggest power utility, which also operates in the Federation, one of Bosnia's two post-war autonomous parts. Elektroprivreda RS is the power utility of the Serb Republic, the other autonomous part of Bosnia. The two utilities regularly sell the electricity surplus they have.

($=0.6684 euro)

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