On the proposal of the Ministry of Finance and Treasury, the Council of Ministers of Bosnia and Herzegovina (BiH) has approved the draft financing agreement between BiH and the European Investment Bank (EIB) for the Vlasic wind farm project.
The project involves the construction of Vlasic wind farm, which will be co-financed by the EIB through a loan of 36 million euros, with a repayment period of 20 years, including a grace period of four years.
The funds will be allocated to the Federation of Bosnia and Herzegovina (FBiH) and the project will developed by state-owned power utility EPBiH.
The project includes the delivery, installation, and commissioning of wind turbines with a total installed capacity of up to 50 MW, the construction of foundations, the supply and installation of electrical equipment and transformers for wind turbines and towers, the construction of a high- voltage substation, access roads, cable trenches, assembly areas and platforms for cranes, and various consulting services.
The project is scheduled for completion in 2024.
The concession contract for Vlasic wind farm was signed between EPBiH and Middle Bosnia Canton (MBC) in late 2011. The concession was granted in period of 30 years, with extension option, where the annual concession fee was set at 1.5 % of overall electricity sales.
The wind farm would consist of 10 wind turbines with combined installed capacity of 50 MW, generation about 115 GWh of electricity per year. It was initially estimated that the wind farm would be operational in 2019 and that the construction would cost up to 70 million euros.
