Bosnia eyes 15 mln euro KfW loan for HPP Capljina revamp

SARAJEVO (Bosnia and Herzegovina), November 13 (SeeNews) – Bosnia plans to take a 15 million euro ($16.5 million) loan from German development bank KfW to finance the modernisation of the Capljina hydropower plant (HPP), the government said.

The cabinet has given the go-ahead to an initiative of the finance ministry to hold talks with KfW on signing a loan agreement, it said in a statement on Tuesday after a regular meeting.

The aim of the project is to extend the life span of the pumped-storage HPP via upgrading its 40-year old equipment. The upgrade will result in raising Capljina's electricity output and increasing its capabilities to provide additional services to the Bosnian power supply system and the Serbia-Croatia-Bosnia and Herzegovina power supply block, the statement said.

On behalf of Bosnia, the negotiations on the KfW loan will be carried out by the state-level finance ministry as well as by the finance ministry of Bosnia's Federation entity and its power utility company Elektroprivreda HZHB, which manages the Capljina plant, the statement added.

The 420 megawatt Capljina plant is located on the Trebisnjica river, in the Federation.

The Federation is one of the two entities which comprise Bosnia and Herzegovina. The other is the Serb Republic.

($=0.9088 euro)

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