Petar Đokić, minister of industry, energy and mining of the Republic of Srpska, and Branislava Milekić, general manager of the state-controlled power utility Elektroprivreda Republike Srpske (ERS), signed a concession agreement for the construction and operation of wind plant Hrgud in Berkovići municipality.

The value of the project located in Bosnia and Herzegovina’s south amounts to BAM 127 million (EUR 64.9 million), the entity’s government said. Đokić said the Hrgud facility will have installed capacity of 48 MW with 16 turbines.

He added it would be financed by German development bank KfW with a EUR 60 million loan, while ERS would provide EUR 4.28 million for implementation. The government completed the negotiating procedure and awarded the concession to ERS, the minister stated.

He recalled that detailed research had been performed in the region of Herzegovina, revealing the location. This will be the first facility of this type in BiH, Đokić said.

The concession has been granted for a period of 50 years. He said he expected the concrete works on the construction of that facility to be done in 2017. Milekić said the signing of the concession was a starting point towards the conclusion of an agreement with KfW.