China’s Norinco seeks to take over 125 MW solar project in BiH

Chinese company Norinco International plans to buy an 80% stake in Aurora Solar, a firm in Bosnia and Herzegovina that has been granted a concession to build a 125 MW solar power plant near Stolac in the Herzegovina-Neretva Canton, Capital.ba has reported. Tihomir Nikolić, co-owner and CEO of Aurora Solar, says negotiations are underway with the Chinese company, as well as with other potential investors, and that nothing has been decided yet.

Nikolić says he wants to keep a majority stake in the project and that instead of an 80% share, he would offer Norinco to acquire up to 50%. He also does not rule out his family company pursuing the investment on its own.

The owners of the project would like to keep a majority stake

Norinco intends to acquire Aurora Solar through its Hungarian subsidiary for EUR 13 million (BAM 25.5 million), while the investment in the future solar power plant has been estimated at around EUR 110 million (BAM 214.2 million), Capital wrote.

According to the concession agreement, the solar power plant should be built on the Komanje hill near Stolac, where the firm has bought over 146 hectares of land. Last September, the Government of the Federation of Bosnia and Herzegovina (FBiH) issued an energy permit for the plant, and in December, the Government of Herzegovina-Neretva Canton granted a 30-year concession.

FBiH is one of the two entities making up Bosnia and Herzegovina. It consists of ten cantons. The other one is called the Republic of Srpska.

Norinco has built the largest wind farm in Croatia, with a capacity of 156 MW. The Senj facility was opened in 2021. The investment was worth EUR 200 million. However, the wind power plant hasn’t yet received a use permit due to problems with excessive noise made by its 39 wind turbines, the news website recalled.

Norinco has built the largest wind farm in Croatia, but it has not yet received a use permit

Norinco is part of China North Industries Corporation (CNGC), one of the largest Chinese concerns, operating in 40 countries worldwide. However, the article notes, it has been receiving a lot of bad press due to issues with infrastructure projects in Africa, such as air pollution, impacts on health, local communities, and ecosystems, as well as poor worker safety.

In recent years, China has become involved in a number of lending and construction projects in Bosnia and Herzegovina, including thermal power plants, hydropower plants, and renewable energy plants, the media outlet recalled. The projects include the Ivovik wind farm and the Dabar hydropower plant.