The Government of the Federation of Bosnia and Herzegovina (FBiH) has approved an initiative to obtain a loan of up to €31.5 million from the World Bank’s International Bank for Reconstruction and Development (IBRD) for the reconstruction of the Jajce II Hydropower Plant (HPP). This decision follows a proposal by the Federal Ministry of Finance. The final loan agreement will be concluded after negotiations with the IBRD to finalize the terms. The power utility EP HZHB will be the ultimate borrower for this loan.
Commissioned in 1954, HPP Jajce II, along with HPP Jablanica, is one of the oldest active power plants in Bosnia and Herzegovina. It underwent a major overhaul between 1981 and 1984, but several critical components were not updated at that time.
The revitalization project aims to modernize the plant to extend its operational lifespan by 40 to 50 years, incorporating advanced and eco-friendly technologies. The project will involve replacing turbine-generator units and auxiliary drives, updating common drives and essential equipment, overhauling the hydromechanical systems, and structurally renovating key components of the powerhouse at the dam.
Without this reconstruction, HPP Jajce II is projected to cease operations within the next decade. The upgrade will not only sustain but potentially increase the plant’s current level of renewable electricity production. Additionally, the improved energy efficiency will help maintain and possibly enhance the plant’s contribution to reducing CO2 emissions.
