ISO & TRANSCO Loan Novation Project


Bosnia and Herzegovina

Project number:


Business sector:

Power and energy

Notice type:


Environmental category:


Approval date:

20 Nov 2007



PSD disclosed:

02 Jul 2007

Project Description

Supply and installation of a SCADA/EMS system for the electricity transmission network in the Federation of Bosnia and Herzegovina and Republika Srpska. Following the signing of this loan in November 2000, a further loan of €20 million for environmental investments at four thermal power plants (Tuzla, Kakanj, Gacko and Ugjlevik) is being considered.

The project will re-establish Bosnia and Herzegovina's interconnection with the Union for the Coordination of Transmission in Europe (UCTE), thereby increasing and facilitating power trade in the region. It will also help reduce environmental pollution in the region through investments in four power plants.


Transition Impact

Under the project, the international financial institutions will provide assistance in the formulation and implementation of power sector restructuring in Bosnia and Herzegovina.

The Client

The loan was initially lent directly to the State of Bosnia and Herzegovin with two on-lending agreements signed between the State and the two Entities, as well as three on-lending agreements between the Entities and each of the three utilities operating in the power sector, namely: Elektroprivreda Republika Srpska (EPRS), Elektroprivreda Hrvatske Zajednice Herceg-Bosne (EPHZHB), and Elektroprivreda Bosne i Hercegovine (EPBiH).

With the establishment of Transco and ISO, respectively the owner and operator of the high voltage transmission network, the loan obligations will be redirected from the Elektroprivredas to the newly created companies.


EBRD Finance

The EBRD has provided €50 million, and with additional €20 million, in the form of a sovereign loan. The project is part of a larger investment programme for the Bosnian power sector, being financed in parallel by the World Bank, EIB and bilateral donors.

Project Cost

Approximately US$ 231 million (€272 million).

Environmental Impact

The project was initially screened as "C1". The project will help to increase the reliability and efficiency of electricity transmission and will reduce line losses and associated emissions from power generation. In addition, the loan increase (screened as B/1) will help decrease dust emissions as well as reduce the risk of polluted water discharges, thereby improving the local environment.

Technical Cooperation



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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