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EBRD supports regional connection of Bosnian power system
A €50 million sovereign loan from the European Bank for Reconstruction and Development (EBRD) will help to ensure a reliable supply of electricity throughout Bosnia and Herzegovina (BiH) by financing projects to improve the integration of the network. The project will also lead to the reconnection of the Bosnian power system to the Union for the Coordination of Transmission of Electricity (UCTE), an association of west and east European transmission system operators promoting the reliable operation of electricity networks.
Tony Marsh, the Director of Power and Energy Utilities at the EBRD, said: "Up until now we have focused on restoring the basic supply of electricity, but now it is time to focus on sector restructuring, improving efficiency and standards, and reconnecting the Bosnian power system with the region, and the UCTE. This will increase power trade in the region, permit the supply of electricity to Serbia and Kosovo during their network reconstruction and increase regional cooperation."
The EBRD loan will be made to the State of BiH and on-lent to Republika Srpska and the Federation of Bosnia and Herzegovina, and subsequently to the three power utilities in BiH: Elektroprivreda Bosne i Herzegovine (EPBiH), Elektroprivreda Hrvatske Zajednice Herceg-Bosne (EPHZHB) and Elektroprivreda Republika Srpska (EPRS).
The investment will establish a power monitoring and control system (SCADA), an energy management system (EMS) and associated communication facilities, which will improve power supply and reduce power cuts. The EBRD financing is part of a larger investment programme, Power III, which is supported by the World Bank, the European Investment Bank, and various bilateral donors. It strengthens the post-conflict reconstruction programme in the BiH power sector, helping to bring about a more efficient local transmission system and to connect other countries of south-eastern Europe to the UCTE network. The project is one of the "Quick Start" projects identified for financing and implementation under the Stability Pact for South Eastern Europe.
The EBRD has already provided a sovereign loan to BiH of DM 27.5 million (€14 million) for the first phase of the reconstruction of the country’s power system. In this second phase, the EBRD will provide assistance in implementing a restructuring and privatisation process, based on experience gained in other transition economies. The Bank will focus on power sector reform and assist BiH in defining and implementing energy policies in line with EU legislation.
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