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EBRD loan helps improve power network in BiH
€55 million helps modernise distribution network country-wide
The EBRD is lending Bosnia and Herzegovina €55 million to help modernise the
electricity distribution infrastructure across the country, which will
ultimately benefit households and businesses alike.
The 15-year loan will help to ensure a more reliable and better quality supply
of electricity by helping to fix or build new low voltage overhead lines and
underground cables, and new substations, which lower voltage levels entering
distribution networks. The loan will assist in reducing losses, and therefore
costs, and improving energy efficiency by minimising the loss of electricity.
The Greek government provided €100,000 in technical cooperation funds to help
kick-start the project.
Peter Reiniger, EBRD Business Group Director for Energy, said the loan will
help to upgrade a part of the country’s network which has until now been
operating with very minimal investment. The loan will also help to finance the
upgrade of the distribution services, which should eventually lead to their
privatisation, benefiting businesses, residents, and the economy.
The loan builds on the EBRD’s support for the country’s power sector. Since
1996, including this latest loan, the Bank has invested around €140 million
into the country’s power sector. It was also one of the first institutions to
help reconstruct the sector in the aftermath of the conflicts.
The finance is being provided to Bosnia and Herzegovina, and will be onlent to
three regional power utility companies through the two Entities – the
Federation of Bosnia and Herzegovina, and Republika Srpska.
The Bank is one of the largest investors in BiH, having committed more than
€500 million in 43 projects.
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