HET delays decision on capital boost for hydropower plant Dabar project


Photo: ERS


January 24, 2022


comments icon




January 24, 2022


comments icon



Shareholders of hydropower producer Hidroelektrane na Trebišnjici (HET) did not adopt a decision at a meeting on Friday on a capital increase for the construction of hydropower plant Dabar. The decision, according to HET CEO Gordan Mišeljić, was postponed in order to define the criteria more clearly and protect small shareholders.

The proposed decision did not pass because state-controlled power utility Elektroprivreda Republike Srpske (ERS), the majority owner of HET, abstained from voting at the shareholder meeting. An updated proposal of the capital increase plan is expected to be ready in February at the latest, according to announcements from HET.

An updated proposal of the capital increase plan is expected in February

ERS plans to raise capital for the Dabar project by issuing EUR 218 million worth of shares.

Experts and opposition parties insist that the planned capital injection is in fact a prelude to the privatization of HET, but this has yet again been denied by the company.

HET has again denied allegations that the planned capital injection is a prelude to privatization

HET earlier said that its majority owner, ERS, had already secured funding to buy new shares in order to ensure it retains at least the same stake it already holds, of 65%.

An agreement on the construction of HPP Dabar was signed in 2020 with China Gezhouba Group Co.

China Gezhouba Group Co. signed an agreement in May 2020 to design, build and put in operation HPP Dabar. The deal is worth EUR 222.8 million, of which 85% is to be covered through a loan from Export-Import Bank of China.

HPP Dabar, for its part, should secure a total of EUR 108 million for the project, including the remaining 15% for the agreement with the Chinese contractor, but also the funding needed for the construction of tunnels, expropriation, loan insurance premiums, and the Republic of Srpska government’s guarantees for the loan.

At the end of 2021, ERS also received the entity government’s consent to issue bonds on the Vienna Stock Exchange to raise funds for building HPP Dabar and HPPs on the Bistrica river.

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

Romania-ambitious energy storage plans 5 GW by end 2026

Romania’s ambitious energy storage plans: 5 GW by end-2026

18 July 2024 - These ambitious energy storage targets are aligned with transmission system operator Transelectrica’s recommendations and analyses

ems serbia grid connection wind solar

Serbia opens new round of grid connection applications for wind, solar

17 July 2024 - TSO EMS has announced that September 1 would mark the start of the new interval for the preparation of studies for the grid connection

Trafigura Romanian renewables solar power Nala

Trafigura enters Romanian renewables market via solar power project purchase

17 July 2024 - Trafigura's subsidiary Nala Renewables bought a ready-to-build PV project of 61 MW in Romania with an option to integrate battery storage

western balkans wind solar investments study

Western Balkans have as many prospective solar, wind projects as Germany

17 July 2024 - Prospective utility-scale solar and wind capacity amounts to 23 GW or 70% more than a year ago, according to the latest study