Emergency Power System Reconstruction Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 3211

Status Complete

Location

Bosnia and Herzegovina

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 3211

Status Complete

Location

Bosnia and Herzegovina

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

22 Sep 1997

Disclosure date

31 Oct 1996

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Emergency reconstruction of war-damaged generation, transmission and distribution facilities in Bosnia and Herzegovina.

The objectives of the operation are to:

(i) restore power supply to areas which have been affected by the war across the territory of Bosnia and Herzegovina; and
(ii) strengthen the financial management and performance of the power sector.

The proceeds will be used for:

EPBiH: meters, transformers and distribution rehabilitation equipment;
EPRS: meters and transmission equipment;
EPM: meters, transmission and hydro-power plant rehabilitation equipment.

Transition Impact

The operation contributes to the transition process by supporting the supply of electricity, which is essential for revitalising the economy. It is also assisting in the commercialisation of the power sector and will contribute to the transition to a market economy by introducing institutional change in the form of economic pricing of electricity and improved bill collection rates as well as economic pricing for the downstream and upstream sectors.

The Client

The borrower of the proposed loan is the state of Bosnia and Herzegovina. The proceeds will be on-lent to the three utilities which generate, transport and distribute electricity in their respective zones: Elektroprivreda Bosne i Herzegovine (EPBiH) in the Bosnian-populated areas of the Federation, Elektroprivreda Republika Srpska (EPRS) in Republika Srpska (Serb Republic), and Elektroprivreda Mostar (EPM) in the Croat-populated areas of the Federation.

EBRD Finance

The proposed Bank investment will consist of a US$ 15.6 million loan (ECU 12.5 million), of which US$ 7.2 million will be on-lent to EPBiH, US$ 4.8 million to EPRS, and US$ 3.6 million to EPM.

Project Cost

The total project cost is US$ 160 million (ECU 128 million), the balance being provided by a concessional loan from the World Bank and grants from a number of donors, including the European Union, Austria, Belgium, Canada, the Czech Republic, France, Ireland, Japan, Norway, the Netherlands, Sweden, the UK, USA and the Central European Initiative.

Environmental Impact

The project was screened as B/1, requiring an analysis of main environmental impacts associated with the project and an audit to identify any soil and water contamination. Due to a combination of political, safety and physical constraints, it was not possible to carry out an independent environmental investigation prior to Final Review. However, as the Bank will be financing equipment for the rehabilitation of the transmission and distribution networks, the environmental impacts are unlikely to be significant. The only specific environmental issue of some concern is the possibility of past contamination from polychlorinated biphenyls (PCBs) in the existing transformers. In this regard, a letter has been requested from the three regional utilities confirming that such contamination has not occurred.

Transmission and distribution component

Rehabilitation of the 220 kV and 110 kV lines will not create any additional adverse environmental impact. The following mitigation measures are proposed for this component: (i) risks of electrocution will be minimised by providing anti-climbing devices and installing danger signs; and (ii) noise from substation transformers will be reduced by adopting stringent specifications in the tender documents.

There are no adverse impacts arising from the rehabilitation of the distribution network, as it will involve only the replacement of damaged equipment. All equipment procured under the project will be free from PCBs.

A training programme for engineers and operators on health and safety procedures and practices will be provided as technical assistance within the scope of the project.

A reliable supply of electricity will reduce the use of wood for heating and cooking, and will reduce the further destruction of the parks and forests in and around Sarajevo and other cities used extensively as a supply of wood during the war.

Hydro component

The rehabilitation works on the Jajce hydro-power station involve the replacement of damaged or non operational equipment. The operational regime of the plant will not change, but the efficiency of the plant will be increased. In addition, the improved generation of the hydro-power plant may well reduce the use of other non-renewable sources of energy. Disposal of used equipment and its recycling will be monitored by the Project Implementation Unit and the project coordinator.

As an additional environmental component, a part of the Austrian grant funds will be used to restore the ecological balance in one of the national parks on the Pliva River. Due to the war damage and the inability to maintain the park's artificial waterfall, which forms part of the Jajce hydro scheme, a cavern was opened, which has resulted in approximately 70 per cent of the river flow being diverted underground. The sealing of the cavern will reinstate the flow downstream and restore ecosystems in and around the river bed.

Technical Cooperation

There are four studies financed under this operation: Long Term Investment Study, Training Programme, Commercial Management Study, Tariff Study.

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search