Renewables

EIB Global approves loan to EPBiH for Vlašić wind power plant

EIB-Global-loan-EPBiH-for-Vlasic-wind-power-plant

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Published

February 22, 2024

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Published:

February 22, 2024

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The European Investment Bank’s EIB Global branch formally approved EUR 36 million under the Global Gateway initiative for the construction of the Vlašić wind farm near Travnik in Bosnia and Herzegovina. The project is receiving EUR 21.7 million in grants from the European Union while KfW should cofinance it.

EIB Global, the financial arm of the European Investment Bank (EIB) for activities outside the European Union, has signed off on a EUR 36 million loan for a 50 MW wind farm on the high plateau of Vlašić mountain. The site is 15 kilometers northwest of the town of Travnik in Bosnia and Herzegovina.

Through its Western Balkans Investment Fund (WBIF), the EU allocated a EUR 20.9 million grant in December to state-owned power utility Elektroprivreda Bosne i Hercegovine – EPBiH. In addition, EIB and Germany’s KfW Development Bank approved a total of EUR 0.8 million in grants, while the latter is set to also cofinance the project, with a EUR 16.5 million loan.

The beneficiary will participate with EUR 16.7 million of own funds, bringing the total to EUR 90.9 million. Still, in its update the EIB estimated the costs at over EUR 91 million.

Vlašić mountain gaining popularity among investors in wind power

The Vlašić facility is planned to consist of up to 18 wind turbines with an estimated 115 GWh of total yearly power output. Notably, two other projects for locations at the same mountain were recently revived.

“As the EU climate bank, this strategic investment demonstrates the EIB’s determination to scale up its financial and technical support for addressing the challenges related to the green transition in Bosnia and Herzegovina and the Western Balkans region. It supports the country’s energy and climate targets, while fostering resilient economic development that ensures a stable energy supply and generates employment. For EIB Global, a leading financier of the energy transition and climate action, it is important to support all countries and regions and make sure this transition is just and sustainable,” said EIB Vice-President Kyriacos Kakouris.

EU to continue financial backing for energy transition in BiH

EU Ambassador Johann Sattler reiterated the 27-member bloc’s commitment to providing financial resources.

“Together with our partners, we want to help Bosnia and Herzegovina to take advantage of its favourable climate and geography and start delivering on its path towards a low-carbon economy, reducing coal dependence and fostering sustainable development,” he stated.

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