The proposed Business Plan of Bosnia’s state-owned power utility EPBiH for the 2025–2027 period estimated a projected loss of around 10.7 million euros. However, by the end of 2024, the loss is now expected to reach approximately 20.5 million euros. While this is a significant improvement compared to the 169 million euro loss reported in 2023, it’s important to note that the 2023 loss was not solely due to financial operations, and EPBiH is still struggling to recover from its deficit.
Several factors contributed to the loss, including a coal shortage, outdated equipment, mine closures, and the management’s decision to delay electricity price adjustments until July. Despite possible minor deviations from the estimate, EPBiH considers the current projected loss of 20.5 million euros to be manageable.
In a more positive development, EPBiH successfully recovered 126 million euros from the Chinese consortium initially selected to build unit 7 at the Tuzla thermal power plant (TPP). There remains the possibility of arbitration if the Chinese consortium files a high compensation claim for the years spent on a project that ultimately failed to materialize. These funds were returned after the FBiH Government last year granted EPBiH preliminary approval to terminate its contract with the Chinese consortium, which consisted of China Gezhouba Group Company and China Energy Engineering Group Guangdong Power Design Institute Co. The government also approved the cancellation of the loan agreement with China’s Exim Bank.
