HET delays decision on capital boost for hydropower plant Dabar project


Photo: ERS


January 24, 2022





January 24, 2022




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

Construction of first large solar power plant in BiH kicks off

27 May 2022 - The facility will be located in the southern municipality of Grude, 20 kilometers from the Adriatic Sea and 50 kilometers from Mostar

Wind solar save Turkey amazing USD 7 billion 12 months

Wind, solar save Turkey amazing USD 7 billion in last 12 months

27 May 2022 - Wind and solar power plants saved Turkey USD 7 billion over the last 12 months as it would have had to compensate for the shortfall with gas imports

Romania EUR 1 4 billion European funds grid solar gas

Romania to invest EU funds of over EUR 1.4 billion in grid, solar power, gas plants

27 May 2022 - The EU allowed Romania to use its share of the Modernisation Fund for the makeover of coal plant owner CE Oltenia and the electricity grid


Guarantees of origin scheme ready to go live in Energy Community markets

26 May 2022 - All that is left to do is for the national issuing bodies to sign agreements with energy certificate registry provider Grexel, says Naida Taso