Republic of Srpska plans EUR 204 million in loans for power plants, grid

The Republic of Srpska is willing to issue guarantees for BAM 400 million (EUR 204.5 million) for coal power plants and the distribution grid.

The Government of the Republic of Srpska envisages loan guarantees in the value of BAM 400 million for the maintenance and development of the distribution network, according to Minister of Energy and Mining Petar Đokić.

The Republic of Srpska is one of the two entities making up Bosnia and Herzegovina. The other one is the Federation of BiH.

Đokić underscored that it is important to improve the maintenance and development of the distribution network in the power system, Srna reported.

Đokić: It is inappropriate for parts of the Republic of Srpska to be without electricity supply for 5-6 days

Two thermal power plants, Gacko and Ugljevik, would receive loans of BAM 150 million (EUR 76.7 million) each while the remaining BAM 100 million (EUR 51.1 million) would be for the reconstruction of the distribution network, he explained after meetings with the management of distribution system operator (DSO) Elektrokrajina and the CEO of power utility Elektroprivreda Republike Srpske (ERS) Luka Petrović.

Both coal-fired power plants and Elektrokrajina and the remaining four DSOs in operate under ERS.

Đokić pointed out that it is inappropriate for parts of the Republic of Srpska to be without electricity supply for five to six days in the event of extreme weather events.

A procedure for contracting a loan with a European bank is underway

He explained that the fees approved by the regulator aren’t sufficient for distribution companies and DSOs to solve all problems. However, in his words, the companies will eliminate some of the problems and provide more funds for investing in the distribution grid.

The Government of the Republic of Srpska is committed to supporting DSOs to improve the distribution network, Đokić stressed.

ERS CEO Luka Petrović revealed that the procedure is underway for contracting a EUR 43.5 million loan with a European bank for the rehabilitation of the distribution network.

Another investment in the modernization of Elektrokrajina is also planned, according to Petrović. It is for smart technologies. This will contribute to better control of losses on the distribution network, Petrović stressed.