EUR 30 MILLION FOR RECONSTRUCTION OF 1,700 KILOMETRES OF POWER GRID

BANJA LUKA, SEPTEMBER 25 /SRNA/ - Elektrokrajina is launching a major project to reconstruct 1,700 kilometers of medium- and low-voltage power lines, worth EUR 30 million, which will provide users with a more stable electricity supply, it was announced today at a news conference in Banja Luka.

Republika Srpska Prime Minister Savo Minić said that this was one of Elektrokrajina's priority projects, whose implementation would generate significant savings, as well as provide a more stable electricity supply to citizens and the economy.

"This will significantly strengthen electricity supply in the most critical areas," Minić said.

He expressed confidence that the domestic economy would have the capacity to participate in the implementation of this major project.

BiH Minister of Finance and Treasury in the Council of Ministers Srđan Amidžić said that implementation of the project in cooperation with the European Bank for Reconstruction and Development /EBRD/ confirmed Republika Srpska's international financial credibility.

"The loan terms are highly favorable. The grace period is four years, while the repayment period is up to 20 years. The EBRD is a serious financial institution that does not approve loans unless the borrower is financially viable," Amidžić said.

He said that the savings generated by the project would exceed BAM four million annually, meaning that the loan could be serviced from the savings.

Amidžić said that Elektrokrajina was entering the process of launching a tender to select a contractor, alongside the ratification process for the loan agreement.

Acting Director of Elektrokrajina Saša Popović said that the project would involve replacing 43,000 electricity poles in five cities and 16 municipalities under the company's jurisdiction.

"The loan amounts to EUR 38 million, of which EUR 30 million will be spent on the new project, while EUR eight million will be used to refinance an existing loan with the EBRD," Popović said.

The project will be implemented over a period of three years, with a total of 12 percent of Elektrokrajina's network to be reconstructed.