Provision of a corporate loan to "Elektroprenos - Elektroprijenos BiH" a.d. Banja Luka ("TRANSCO" or "client") in the amount of up to EUR 20.1 million for the modernisation and upgrade of the company's core telecommunications systems (the "project"). The project will comprise (i) the acquisition and installation of a new telecommunications system, and (ii) the installation of back-up power supplies in sub-stations to ensure system reliability. The project will allow the client to implement a piece of the necessary technological upgrades to allow for the scale-up of renewable energy supply and therefore help support the green, low-carbon transition of the country.
The project will help improve the cross-border trade and allocation of electricity transmission capacity via the optimised management of the transmission network. The proposed modernisation of the telecommunications system will also significantly improve the country's power system's reliability and stability and will be an important step towards the creation of a smart grid in the country, ultimately reducing electricity losses, increasing the grid's absorption capacity for new renewable energy and decreasing carbon emissions.
ETI score: 60
The transition impact derives from the resilient transition quality through (i) the installation of a new telecommunications system and (ii) expected improvements in energy efficiency stemming from future smart meter roll-outs as well as increasing the grid's ability to provide additional renewable capacity.
The project includes also the green transition quality by helping improve the efficiency and management of electricity substations and/or distribution systems, resulting in reduced energy use and less technical losses including improving grid stability or reliability.
The borrower is TRANSCO, the Transmission System Operator ("TSO") in Bosnia and Herzegovina ("BiH"). TRANSCO is owned by the governments of the two entities of Bosnia and Herzegovina (BiH), the Federation of Bosnia and Herzegovina (59%) and the Republika Srpska (41%). The company operates under a licence granted by the State Electricity Regulatory Commission.
EBRD Finance Summary
A corporate loan of up to EUR 20.1 million to BiH to TRANSCO. The loan tenor is up to 13 years, including up to 3 years race period.
Total Project Cost
The total estimated project cost is EUR 23.7 million including capital investments and technical cooperation (consultancy services) from the EBRD. The client is expected to contribute up to EUR 3.4 million towards covering VAT for the capital investments as well as partially covering the cost of consultancy services.
The additionality of the EBRD financing includes: (i) financing structure, the policy, sector, institutional or regulatory change and (iii) standard-setting: helping projects and clients achieve higher standards through best international procurement standards.
Environmental and Social Summary
Categorised B 2019 ESP and Low Risk. The environmental and social impacts associated with this project include construction risks and electrical safety. Environmental and social due diligence will involve an appraisal of the use of proceeds and a review of the company's corporate EHS and labour management systems and ESG reporting, which will be benchmarked against the Performance Requirements and good industry practice. Due diligence will be carried out by ESD via a questionnaire and an ESAP will be agreed with the client to address any issues that are identified. The operation team is required to work with EPG, E2C2 and ESD on the GET dimension and approach for this project.
Technical Cooperation and Grant Financing
The Bank will seek to mobilise up to EUR 200k of non-reimbursable TC funds from an international donor (to be identified) or via the EBRD Shareholder Special Fund ("SSF") to assist with project implementation, including the preparation of technical specifications and tender dossiers, assisting the client tender evaluation and the signing of contracts. Given its status as a state-owned company, the Company will be asked to make in-kind cost-sharing contributions to facilitate the work of the PIU team as well as any additional finance required for this assignment.
Company Contact Information
+387 51 246 500
+387 51 246 550
Marije Bursac 7a Banja Luka 78000 Bosnia and Herzegovina
PSD last updated
19 May 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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 following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.