Memorandum to speed up construction of Mesihovina wind farm

Power utility Elektroprivreda HZHB signed a memorandum of understanding with USAID that should speed up the construction of Mesihovina wind farm.

The agreement was signed by the director of USAID Mission to BiH Peter Duffy and the general manager of Elektroprivreda HZHB Marinko Galja, confirming their cooperation on the USAID Energy Investment Activity project. The project places emphasis on completing the case study for Mesihovina wind farm, which is needed in order to obtain the building permit.

„This agreement will enable the identification of legislative, regulatory and administrative obstacles that the investor faces in the licencing process. USAID will shorten and simplify the procedures and encourage investment in the energy sector“, said EP HZHB in the announcement.

After the signing, director of USAID Mission Peter Duffy said that slow licencing procedures and legal loopholes are hindering BiH in the use of renewable energy sources.

EP HZBH signed the contract to build Mesihovina wind farm, worth EUR 72 million, with German company Siemens in March last year. The substation will be installed by a consortium of ABB from Croatia and Elektrocentar Petek in a project worth another EUR 4 million.

Construction of Mesihovina wind park is funded by the German Development Bank KfW, which is also funding Hrgud and Podvaležje wind farms with EUR 60 million and EUR 65 million, respectively.

Elektroprivreda HZBH is the smallest of the three Bosnian state-owned power utilities, and is based in the Federation. The country’s largest power utility is Elektroprivreda BiH, also based in the Federation, while Elektroprivreda RS is the power utility of Republika Srpska.