Bosnia and German Lender Sign Loan Deal for Wind Farm

A loan agreement for the financing of a wind farm in southern Bosnia was signed between the Ministry of Finance and Treasury and KfW Development Bank. The project aims at constructing a 48 MW wind farm with a lifetime of at least 20 years and an annual electricity output of around 126 GWh in order to diversify the country’s energy sources towards cost-effective and climate-friendly electricity.

The reduction of CO2 emissions following the project completion is expected to amount to 108,000 tons per year. The Hrgud wind farm will be located some 50 km from Trebinje and 30 km from Mostar.

The German government committed funds to finance the wind farm project in Republika Srpska through a low-interest loan by KfW of up to €60 million, while the Elektroprivreda RS power company is contributing own funds of €4.3 million.

“Hrgud will be the first wind farm in Republika Srpska, taking advantage of the excellent potential for wind power in southern Herzegovina. It is already the third wind farm project in Bosnia and Herzegovina financed by German Financial Cooperation. The first of these, Wind Farm Mesihovina in the Federation of BiH, has now been erected and will go into operation early next year. We are proud to support the establishment of this sustainable technology in the country”, said Matthias Schmidt-Rosen, Director of KfW Office for Bosnia and Herzegovina at the signing.

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