Power utility ERS launches tender for EUR 118.7 million in loans to finance construction of HPPs

State-owned power utility Elektroprivreda Republike Srpske (ERS) has announced a tender for EUR 118.7 million in loans for the construction of three hydropower plants with an installed capacity of 45 MW on the Bistrica river and the 160 MW Dabar hydropower plant.

Elektroprivreda Republike Srpske intends to take two loans: EUR 68.7 million for three HPPs on the Bistrica river and EUR 50 million for HPP Dabar. The deadline for submitting bids is May 17.

Loans for three HPPs in Bistrica were supposed to be secured last year, but the company delayed the process due to the coronavirus pandemic.

The Republic of Srpska signed a contract in late 2019 for the construction of three hydropower plants on the Bistrica river with 45 MW in combined capacity with giant Chinese firm AVIC-ENG – China National Aero-technology International Engineering Corp.

Works on HPP Dabar are already in progress.

ERS has set a 2.5% upper limit for the interest rate for the HPP Bistrica loan, while the required grace period is 42 months. The company intends to use the funds over the next three years.

The limit for the HPP Dabar loan is 3.8% and the utility is requesting a grace period of 48 months. ERS plans to draw it immediately.