Renewables

ERS: KfW loan for Hrgud wind farm favourable

Photo: Pixabay

Published

December 23, 2016

Comments

0

Share

Published:

December 23, 2016

Comments:

0

Share

The KfW loan for the Hrgud wind farm in Berkovići is one of the most favourable. This is the reply of the ERS’ management to the opposition’s accusations that the decision on the loan is a violation of law.

Since guarantees for the loan for the Hrgud wind farm construction are provided by the government, it is more favourable in terms of the interest rate when compared with for commercial loans, ERS director for the implementation of projects funded by international financial institutions Milorad Živković told the Glas Srpske.

“When it comes to the loan for the wind farm Hrgud construction, a variable interest rate is favourable because it is based on the effective cost of funding on the European capital market, and its value was negative in the previous period. An example which confirms this statement are other two utilities in Bosnia and Herzegovina (BiH) which have previously concluded loan agreements with accrued 0% interest rate. The interest rate could be fixed and KfW advocated a rate of 3%, but considering the predictions of their representatives, they have admitted that a variable interest rate is more favourable,” Živković said to the Glas Srpske, adding that other two power utilities in BiH have also chosen this option.

The ERS management said that the decision on getting an EUR 60 million loan from the German bank is not a violation of law. A maximum interest rate cannot be determined because it is related to the current Euro Interbank Offered Rate Euribor, it is said in ERS.

The ERS management has rejected the accusations of the president of the opposition party NDP Dragan Čavić, who announced during the debate in the National Assembly that he would appeal to the Constitutional Court of RS for alleged violations of law.

In addition to the loan, KfW will provide an additional EUR 200,000 grant to finance the study on the environmental impact.

One of the positive effects of the wind farm Hrgud construction is a fee of 3.6% provided by the concession agreement, say ERS officials. In addition, the local community will benefit from the construction of roads and local employment.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Enlight 525 MW renewables project portfolio Croatia

Enlight buys 525 MW renewables project portfolio in Croatia

06 July 2022 - Israel-based Enlight said it acquired and entered joint renewable energy projects of 525 MW in total in Croatia

Romanian heating plant 80 MW solar park green hydrogen gas

Romanian heating plant to build 80 MW solar park, mix green hydrogen into gas

05 July 2022 - Romania's Oradea city is pushing ahead with decarbonization by launching integrated projects for solar power and green hydrogen

Turkish entity Cyprus energy water deal government Nicosia

Turkish entity in Cyprus offers energy, water deal to government in Nicosia

05 July 2022 - Cypriot Turkish leader Ersin Tatar offered the Republic of Cyprus a deal on hydrocarbons, electricity, renewables and water, but under a two-state solution

offshore wind

Hellenic Petroleum, RWE to develop offshore wind projects in Greece

05 July 2022 - RWE and Hellenic Petroleum joined forces to explore offshore wind opportunities in Greek waters. The country is targeting 2 GW in total by 2030.