Elektrokrajina - Grid rehabilitation and upgrade

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A sovereign guaranteed loan of up to €38 million to Elektrokrajina a.d. Banja Luka ("Elektrokrajina" or "Client"), a state-owned distribution company in Republika Srpska, Bosnia and Herzegovina, as part of a €43.2 million investment programme. The Bank's loan will finance the reconstruction and upgrade of medium and low-voltage networks and substations, reducing distribution losses, improving supply quality, and enabling increased integration of distributed renewable energy.

Elektrokrajina is the distribution utility serving around 50 percent of consumers across 16 municipalities in Republika Srpska.

Project ID 57153

Status Exploratory

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

Company Contact Information

Sasa Popovic
sasa.popovic@elektrokrajina.com
+387 51 246-302
www.elektrokrajina.com
Kralja Petra I Karadordevica 95 78000 Banja Luka Bosnia and Herzegovina

Project ID 57153

Status Exploratory

Location

Bosnia and Herzegovina

Business Sector

Energy

Notice Type

State

Approval Date

13 May 2026

Disclosure date

03 Mar 2026

Project Description

Elektrokrajina is the distribution utility serving around 50 percent of consumers across 16 municipalities in Republika Srpska.

Project Objectives

The distribution network of Republika Srpska has experienced persistent under-investment, resulting in ageing assets, elevated technical losses, and reduced reliability of electricity supply. The project will finance the reconstruction and modernisation of medium and low-voltage networks and substations, addressing critical bottlenecks in supply quality and operational performance. The proposed investments will: (1) reduce technical and commercial losses across the distribution system, (2) improve the reliability and quality of electricity supply for consumers, (3) enable greater integration of distributed renewable energy sources through strengthened and modernised infrastructure, and (4) support increased energy efficiency and preparation for further network automation and digitalisation, including through expanded deployment of smart metering.

Transition Impact

ETI score: 65

The transition impact derives from the green transition quality, as the reconstruction and upgrade of grid networks and substations will reduce distribution losses, improve energy efficiency and enable greater integration of small scale renewable energy sources. The Resilience quality will be explored in due diligence on the back of losses reduction and network stability objectives.

Client Information

ELEKTROKRAJINA AD BANJA LUKA

The borrower is Bosnia and Herzegovina. The loan will be cascaded down to the Client for project implementation.

Elektrokrajina a.d. Banja Luka is a state-owned electricity distribution company in Republika Srpska, Bosnia and Herzegovina. Elektrokrajina is majority-owned by Elektroprivreda Republike Srpske (65%), with the remaining shares held by various investment funds and minority shareholders. Elektrokrajina provides electricity distribution services to approximately 50% of consumers across 16 municipalities in Republika Srpska and operates under licences issued by the Regulatory Commission for Energy of Republika Srpska (REERS).

EBRD Finance Summary

EUR 38,000,000.00

Total Project Cost

EUR 43,180,000.00

Additionality

The Bank is providing a longer tenor and larger amount under a sovereign secured corporate structure currently not available from local banks for projects of this nature. The Project will be implemented in accordance with the Bank's environmental and social policy. The Bank's involvement will ensure that transparent and efficient procurement procedures are followed and in line with the Bank's requirements for public sector operations.

Environmental and Social Summary

Categorised B (ESP 2024). An independent Environmental & Social Due Diligence (ESDD) will be undertaken, including a review of Elektrokrajina's E&S corporate policies and practices, past E&S performance and projectilevel impacts and risks. The Environmental & Social risks and impacts associated with the reconstruction and modernisation of medium and lowivoltage networks and substations are expected to include construction-related risks, occupational health and safety, electrical safety, contractor management, labour management issues, and temporary site specific nuisance (noise, dust, traffic), which are anticipated to be managed through the company's existing procedures and integrated management systems. The ESDD will confirm the adequacy of these measures and identify any gaps to be addressed.

Based on the corporate-level review, the ESDD will assess Elektrokrajina's organisational capacities to manage E&S aspects, including environment, health & safety, human resources, pollution prevention and control, and waste management, including internal reporting and incidentimanagement processes with regular H&S training. At the project-level, the ESDD will review if project activities will impact any sensitive sites including protected areas or cultural heritage sites and if any land acquisition, restrictions and involuntary displacement will be required. If such issues are identified, appropriate assessment will be undertaken, and mitigation measures will be developed in line with good international industry practice and in compliance with the EBRD Environmental and Social Policy (ESP).

To ensure full alignment with the Bank's 2024 ESP E&S Requirements (ESRs), any areas for improvement identified by the due diligence will be captured in an Environmental and Social Action Plan (ESAP) to be agreed with the client prior to loan approval. The ESAP will set out targeted enhancements to E&S management, stakeholder engagement, and H&S practices, both at corporate- and project-levels, consistent with the Bank's ESRs and expectations. The PSD will be revised to incorporate the key findings upon completion of the independent ESDD.

The Bank will monitor implementation through annual E&S monitoring reports from the client and site visits as required.

Green assessments

The Project is considered to be aligned with both the mitigation and adaptation goals of the Paris Agreement, based on the application of the EBRD's Paris alignment approach for directly financed investments. The project is aligned with mitigation goals of the Paris Agreement as it features on the joint MDB aligned list under the category "Energy transport".

Material physical climate risks were identified for the project and were found to be either non-material upon further investigation or sufficiently managed via mitigating measures. The project does not contravene national policies for adaptation or the climate resilience of the wider system. It is, therefore, aligned with the adaptation goals of the Paris Agreement.

79% of EBRD financing is classified as green finance, as it supports the activities that contribute to climate mitigation. The attribution is made in line with the methodology used to determine the green finance attribution of EBRD investments, and specific guidance in line with ''Brownfield efficiency improvement or reduction of CO2e emissions in transmission or distribution of electricity, heat, cold, low-carbon gases, or CO2'' criteria.

Technical Cooperation and Grant Financing

The Bank will seek to mobilise non-reimbursable TC funds from the EBRD Shareholder Special Fund to support project preparation, including technical due diligence, preparation of procurement documentation, and other tasks required prior to implementation.

Company Contact Information

Sasa Popovic
sasa.popovic@elektrokrajina.com
+387 51 246-302
www.elektrokrajina.com
Kralja Petra I Karadordevica 95 78000 Banja Luka Bosnia and Herzegovina

Implementation Summary

PSD Last Updated

03 Mar 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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.

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Elektrokrajina - Grid rehabilitation and upgrade

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Green assessments

Technical Cooperation and Grant Financing

Company Contact Information

Implementation Summary

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)