Renewables

ERS risks failure of Bistrica hydropower plants project on lack of funding

ERS failure Bistrica hydropower plants funding

Photo: Pixabay

Published

July 11, 2020

Comments

0

Share

Published:

July 11, 2020

Comments:

0

Share

ERS claims it would extend deadlines for the three hydropower plants on the Bistrica, citing force majeure due to the COVID-19 pandemic issues. Contractor AVIC-ENG from China is said to have the option to terminate the contract if funding isn’t found in less than two months and to keep the advance payment.

Elektroprivreda Republike Srpske, a state-owned energy company from Bosnia and Herzegovina, is late in the development of a project for a string of hydropower plants on Bistrica river. Namely, ERS has until September 4 to obtain financing or the contractor, AVIC-ENG – China National Aero-technology International Engineering, gets to keep the EUR 2 million advance payment, Capital.ba reported, citing the contract’s provisions.

ERS says there is “certain delay”

The deal signed in December for three hydropower plants on the Bistrica is worth EUR 120 million. The financial framework must be completed by September 4 and ERS acknowledged “a certain delay,” the article said.

The utility claimed the deadline would be extended due to force majeure, referring to the coronavirus pandemic. It also said HE Bistrica, the firm managing the project, has personnel limitations.

Hidroelektrane na Drini is responsible for finding loan

The complex in the country’s southeast was supposed to be installed within four years. In April, owners suggested Hidroelektrane na Drini, the subsidiary od ERS which controls the project, should secure the credit package.

According to the agreement, 85% of the expenses for the Bistrica hydropower plants will be covered from loans. The EUR 2 million advance payment was from a loan from Hidroelektrane na Drini to HE Bistrica, the concession holder.

ERS cited staffing issues at the HE Bistrica subsidiary

ERS initially sold HE Bistrica to Milenko Čičić’s Kaldera for EUR 3.5 million, after which Prointer acquired the firm. Then ERS bought it back for more than EUR 10 million, the report notes.

AVIC was earlier tapped for Drina hydropower cascade

The Bistrica hydropower plant cascade is planned to have 45 MW in combined capacity.

Separately, AVIC signed a memorandum of understanding in 2017 for the construction of hydropower plants Buk Bijela, Foča and Paunci on the nearby Drina river.

Elektroprivreda Srbije (EPS) runs the unrelated 60-year-old Bistrica hydropower plant across the border in Serbia.

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

Global utilities scale renewables capacity 2 5 times 2030

Global utilities vow to scale renewables capacity by 2.5 times by 2030

22 April 2024 - Utilities in UNEZA are accelerating grid investment. Member utilities vowed to lift their renewables capacity by 2.5 times to 749 GW by 2030.

Record low power prices and curtailments threaten renewable investments in Greece, Spain

Curtailments, record-low power prices threaten renewables investments in Greece, Spain

20 April 2024 - Renewable energy developers have underestimated the effects of curtailments and low wholesale prices

Power-utilities-Greece-Cyprus-home-PV-systems-in-installments

Power utilities in Greece, Cyprus allow home PV systems to be paid in installments

19 April 2024 - Greece and Cyprus have enabled the installation of home PV systems to be paid in installments and without upfront costs

Hidroelectrica Masdar joint venture 2 GW Romania

Hidroelectrica, Masdar to set up joint venture for 2 GW in Romania

19 April 2024 - Hidroelectrica and Masdar agreed to jointly invest in photovoltaics, floating solar power and batteries in Romania