The proceeds of this loan will be used to finance the completion of the concrete lining of the water tunnel of the future 160 MW hydro power plant Dabar, according to Bosnian media.
In July, ERS said that it has completed the drilling of the most important part of the tunnel, a project worth some 61.2 million euros.
In January 2019, Hidroelekrana Dabar, part of ERS’ subsidiary Hidroelektrane na Trebisnjici (HET), has launched an international tender for financing and construction of hydropower plant Dabar, a project worth some 188 million euros. The selected partner will be obliged to build a dam with embankments and an accumulation basin, a surge tank, a machine house, two 200 kV transmission lines and a drainage channel. The preferred model of financing is a monetary loan with a 15-year repayment period and a four-year grace period. The project partner is expected to provide 85 % or more of the financing, while HET will provide up to 15 %. HPP Dabar will remain in HET’s sole possession following the construction which will last four years. In March, Prime Minister of the Republic of Srpska (RS) Radovan Viskovic said that signing of a an agreement on the construction of HPP Dabar with Chinese company has been delayed due to coronavirus outbreak. Future HPP Dabar is a part of hydroelectric system Gornji Horizonti, its planned power output would be 166 MW, its annual electricity generation should be about 250 GWh. It is expected that the construction will be completed within four years.
