KfW to lend EUR 47.5 million for renewable energy projects

Vjekoslav Bevanda, deputy chair of the Council of Ministers and minister of finance and treasury, signed a financial cooperation agreement worth EUR 48 million with Christian Hellbach, ambassador of Germany in Bosnia and Herzegovina.

Bevanda said the deal enables withdrawal of EUR 47.5 million through favourable loans and EUR 500,000 of grant funds, of which 52% is going to the Federation of Bosnia and Herzegovina, the larger entity, and the remainder to the Republic of Srpska. He clarified that these funds will finance development of hydropower generation and other renewable sources projects, while grant funds are for a water supply and sewerage project. Bevanda thanked the authorities of Germany for approving EUR 600 million altogether to Bosnia and Herzegovina, including almost EUR 100 million of grants, Klix.ba and Sarajevotimes.com reported.

Ambassador Hellbach said that through the projects Germany wants to support Bosnia and Herzegovina to use its huge energy potential even better and he pinpointed that the funds are not for budgets but for concrete projects. The German government so far approved EUR 750 million through financial cooperation projects to Bosnia and Herzegovina, the embassy said.