Republic of Srpska and KfW agreed EUR 60 million credit for Hrgud wind farm

The Government of the Republika Srpska approved EUR 60 million credit by German KfW Development Bank for financing the Hrgud windfarm project, as confirmed by the Ministry of finance.

State-owned utility Elektroprivreda (ERS) from Trebinje, received 50 years concession for the construction and operation of the Hrgud wind farm in Berkovići municipality a year ago. Now, the loan agreement approval will push this investment further forward the realization.

The total investment value of the project amounts to EUR 64.5 million, out of which EUR 4.5 million comes from ERS own funds, and the rest is provided through a loan from the KfW.

48 MW Hrgud wind farm will produce 126 GWh of electricity per year. Five square kilometers farm will be located in a village of Hrgud, 1,000 meters above the sea level.

The expected return of the investments is 15 to 20 years, depending on a production levels and credit payments.

Credit has a 15 years payback period, including 4 years of grace period. The fixed interest rate will be set at the end of payment period, and will be no less than one percent plus KfW margin, BN reports.