EBRD mulls lending 38.5 mln euro to Bosnia's Elektroprivreda BiH

The European Bank for Reconstruction and Development (EBRD) said on Wednesday it is considering providing a non-sovereign senior secured loan of up to 38.5 million euro ($42 million) to Bosnian power utility Elektroprivreda BiH [SAJ:JPESR]

The proceeds of the loan will be used for the construction of two solar photovoltaic power plants with a total capacity of 50 MWp at Gracanica, Bugojno municipality, the EBRD said in a project summary document.

The total loan amount would be co-financed by EBRD and a commercial co-lender, the bank said.

The project envisages the development, construction and operation of two adjacent solar photovoltaic power plants on top of a rehabilitated coal mine site. It is expected to reduce total greenhouse gas emissions by 32,000 tonnes of CO2 per year.

Elektroprivreda BiH, Bosnia's largest power utility, is based in the Federation entity. Elektroprivreda RS is the power utility of the Serb Republic.

The Federation and the Serb Republic are two autonomous entities that form Bosnia and Herzegovina.