In a significant move to bolster the development of hydropower infrastructure, Hidroelektrane na Drini, a subsidiary of the state-owned ERS, has approved an additional €7 million capital injection into the HPP Bistrica project. This decision, made during an extraordinary shareholders’ meeting on February 16, will enhance the registered capital of the project through the conversion of receivables into equity.
This latest funding marks a continuation of ongoing financial support for HPP Bistrica, which has seen prior recapitalizations amounting to €2 million in 2020, €21 million in 2022, and €11.7 million in 2023. With this new contribution, the cumulative investment in HPP Bistrica now reaches approximately €40 million.
The overall estimated cost for constructing HPP Bistrica stands at around €102 million. The majority of this financing is anticipated to be sourced from a loan provided by China’s Exim Bank, totaling approximately €75 million. The remaining funds are expected to be supplied by the government of the Republic of Srpska (RS), which regained ownership of HPP Bistrica in 2019.
The project has a complex history; initially privatized in 2008, it was sold to the Kaldera Company for just €3.5 million. However, it was repurchased eleven years later for €11 million, reflecting a substantial increase over its initial sale price.
The HPP Bistrica complex is designed to consist of three cascade hydropower plants—B1, B2a, and B3—located along the lower course of the Bistrica River, near the town of Foča. Collectively, these plants will have an installed capacity of 39 MW, with an estimated annual electricity generation potential of approximately 152 GWh.
This strategic investment aligns with broader energy development goals in Bosnia and Herzegovina, enhancing local power generation capabilities while fostering international partnerships, particularly with Chinese engineering firms such as the China National Aero Technology International Engineering Corporation (AVIC), which is involved in the construction agreement.
