Project description
and objectives:
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The proposed project is aiming at modernising the electricity distribution
systems of three regional utilities in Bosnia & Herzegovina, enabling the
three local power utilities (or “Electroprivredas”) to improve the reliability
of electricity supply and to increase energy efficiency by minimising losses
of electricity. The Borrower, the State of BiH will on-lend to the three
Electroprivredas that will implement the project on their own territories.
Bank’s funding will be used for the supply and installation of new metering
equipment, protective cables and for the rehabilitation of substations.
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Transition
impact:
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The Project will directly support the electricity sector restructuring in
Bosnia & Herzegovina by improving its financial and technical performances in
particular in the field of electricity distribution paving the way to the
future privatisation of these activities.
Improvement of the efficiency and reduction of losses will have a substantial
impact on the performances of the distribution sector making it commercially
viable and attractive in the future for investors. The standardisation of
equipment achieved through a common purchasing policy implemented through the
project for the three Electroprivredas will reduce the maintenance cost while
streamlining the management and operation of the sector.
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The client:
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The State of Bosnia & Herzegovina will on-lend the proceeds of the Bank’s loan
to the three state-owned regional power utilities: Elektroprivreda Hrvatske
Zajednice Herceg-Bosne ( “EP Mostar” or “EPHZHB”), Elektroprivreda Republike
Srpske (“EPRS”), and Elektroprivreda Bosne i Hercegovine (“EPBiH”).
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EBRD
finance:
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The Bank will lend EUR 50 million to the State; this amount will be equally
split among the three regional power utilities.
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Total project cost:
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The total project cost is 60 million Euros including taxes and custom duties.
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Environmental impact:
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Screened B/1.
The project is likely to improve the safety and environmental standards of the
distribution systems as well as increase energy efficiency by minimising
losses of electricity. The existing facilities will need to undergo an
Environmental Audit to identify and assess any contamination of soil with
transformer oil, potentially containing PCB. The environmental monitoring of
the previous projects has shown that the current environmental and health and
safety management of the three regional power utilities requires
strengthening. The due diligence will need to review the status of the
implementation of existing Environmental Action Plans as covenanted in the
loan agreements with the Bank and define measures for supporting the
environmental management of the three regional power utilities. No other
environmental issues to raise at this stage.
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Technical
cooperation:
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Technical Cooperation funding in excess of 100,000 Euros was provided by the
Greek Government for supporting the project preparation and due diligence.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Laurent Chabrier, Operation Leader: chabriel@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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