Local company Hidroelektrane na Drini, a subsidiary of the state-owned power utility ERS, plans to secure a €74.8 million loan from the Export-Import Bank of China (EXIM) for the construction of three hydropower plants on the Bistrica river. This funding will cover 70% of the construction costs outlined in a contract signed with the China National Aero-Technology International Engineering Corporation (AVIC).
The loan is set to be repaid over 15 years through semi-annual installments, with a grace period of four years. The interest rate will be tied to the six-month EURIBOR, plus an annual margin of 2.4%. The Government of the Republic of Srpska (RS) will guarantee timely payments.
Loan insurance will be provided by the Chinese agency Sinosure, which will receive a premium of 5.43% on the principal and interest.
Preparatory work on the HPP Bistrica project began in August 2022. The complex will include three cascade hydropower plants (B1, B2a, and B3) located along the lower course of the Bistrica River near Foca. Together, these plants will have a combined installed capacity of 39 MW and are expected to generate approximately 152 GWh of electricity annually.
