The Government of the Federation of Bosnia and Herzegovina submitted to the parliamentary procedure the decision to accept the indebtedness of the Federation of Bosnia and Herzegovina in the amount of up to 16.5 million euros from the German development bank KfW Frankfurt am Main for the implementation of the construction project of the Vlašić Wind Power Plant near Travnik, with an installed capacity of up to 50 megawatts.
As stated in the proposal of the decision, the loan funds will be used for the acquisition, installation and commissioning of wind turbines, construction of foundations and power infrastructure, high voltage substations, transmission lines, access roads, cable networks and other supporting facilities and consulting services.
The loan will be approved under favorable conditions, with a repayment period of 15 years, including a grace period of ten years.
The interest rate is 0.75 percent per year, while the fee for undrawn funds will be 0.25 percent per year.
Repayment will be made semi-annually, in equal principal installments.
The Government of the Federation of Bosnia and Herzegovina assessed the complete project documentation as acceptable, including the draft of the Loan and Project Agreement between KfW, Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina and Elektroprivreda BiH.
It is planned that the Federation will forward the loan funds to Elektroprivreda BiH, which will be the ultimate beneficiary of the project and the debtor under the loan.
At the same time, it was emphasized that during the implementation of the project, it will not be necessary to secure additional funds from the budget of the Federation of Bosnia and Herzegovina for co-financing.
The Federal Ministry of Finance is in charge of concluding an appropriate subcontract with Elektroprivreda BiH, which will define the conditions for the return of funds.
Also, the Federal Minister of Finance will be authorized to sign a subsidiary agreement between Bosnia and Herzegovina and the Federation of BiH, as well as a subcontract with Elektroprivreda BiH.
The legal basis for making the decision is contained in the Law on Debt, Indebtedness and Guarantees in the Federation of BiH, which stipulates that the decision on external debt of the Federation is made by the Parliament of the Federation of BiH.
The explanation states that the implementation of the project will create prerequisites for increasing the production of electricity from renewable sources, while the adoption of the decision will enable the conclusion of all necessary agreements for the start of the implementation of one of the largest planned wind farms in Bosnia and Herzegovina, it says. Factor.
