The Government of the Republic of Srpska signed an agreement with a consortium organized by state-owned utility Elektroprivreda Republike Srpske (ERS) and its subsidiary Hidroelektrane na Drini from Višegrad, for the construction and operation of hydropower plant Buk Bijela. The project worth BAM 382.4 (EUR 195.1 million) on the Drina river in Bosnia and Herzegovina’s southeast is planned for installed capacity of 93.52 MW.

Petar Đokić, entity minister of industry and energy, vowed to protect national resources and add to their value. He expressed hope the project will be complete before the deadline, set to last for 12 months for preparation and another five years for the construction. The concession is for 50 years with a fee of 3.6% of income. The one-off fee is EUR 390,300.

The minister said the authorities will consider the possibilities for the other three hydroelectric projects on the Drina in the area – Foča, Paunci and Sutjeska. The plans for Buk Bijela were initiated in 1974.

ERS chief executive Željko Kovačević said his company participates with 20%, while the subsidiary holds 80% of the endeavour. Research, studies, documentation and land expropriation were financed with EUR 8.5 million.