Photo: Elektrokrajina
Distribution system operator Elektrokrajina intends to invest EUR 30 million in the modernization of its power network.
The Council of Ministers of Bosnia and Herzegovina, upon the proposal of the Ministry of Finance and Treasury, has approved an initiative to begin negotiations for a loan aimed at the rehabilitation and reconstruction of the medium-voltage and low-voltage network managed by Elektrokrajina, headquartered in Banja Luka.
The company is a distribution system operator (DSO) in the Republic of Srpska, one of the two entities making up Bosnia and Herzegovina. The other one is the Federation of BiH.
The loan agreement will be signed between BiH and the European Bank for Reconstruction and Development (EBRD), according to the Council of Ministers of BiH.
The project envisages the upgrade of the outdated medium-voltage and low-voltage grid operated by Elektrokrajina. The firm covers five cities, 16 municipalities, and an area of 8,890 square kilometers, making it the largest DSO in the Republic of Srpska.
The project includes the upgrade of 1,700 kilometers of the distribution network
The investment will include the modernization of 700 kilometers in medium voltage and 1,000 kilometers of the low-voltage grid, which will significantly contribute to the reliability of the supply, reducing energy losses and increasing energy efficiency, the update reads.
The primary objective of the project is to increase the quality and reliability of the power supply to end-users of the distribution network. At the same time, the project’s implementation will contribute to increasing the capacity of the distribution network, resulting in a greater ability to connect new users, and especially additional distributed renewable energy sources, the council underscored.
The part of the loan will be used to refinance the existing loan
The EBRD is going to provide a loan to BiH in the amount of EUR 38 million, allocated to the Republic of Srpska. The planned budget for the project is EUR 30 million, while EUR 8 million is designated for refinancing an existing credit agreement with the EBRD.
The Republic of Srpska’s Minister of Energy and Mining Petar Đokić recently said that the entity government was willing to issue loan guarantees for BAM 400 million (EUR 204.5 million) for coal power plants and the distribution grid.
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