Elektroprivreda RS was granted the concession for the construction of HPP Buk Bijela

Elektroprivreda RS was granted the concession for the construction of HPP Buk Bijela

RS Government adopted a decision on granting the concession for the construction and use of hydro power plant (HE) "Buk Bijela" on the Drina River, the consortium organized by "Elektroprivreda RS" and its subsidiary "Hydro power plants on the Drina" in Visegrad, confirmed by the "Independent".

In this context, the government has given the consent to the proposal of the concession agreement for the construction and operation of HPP “Buk Bijela”, in the municipality of Foca, in which construction is planned investment of about 382 million KM.

As confirmed, the concession agreement between Ministry of industry, energy and mining, and “Elektroprivreda RS” should be signed in the coming days.

– Soon begin building activities for the hydro power plant “Buk Bijela”, for which the government awarded the concession to the company “Elektroprivreda RS”, which will in future invest in the construction of hydro power plants – said Djokic.

The Ministry of Industry, Energy and Mining said that this consortium submitted a tender for the concession for the construction and operation of hydroelectric power plant Buk Bijela on the river Drina, with estimated installed capacity of 93.52 megawatts.

Specifically, after considering the consortium bid, the RS Government on March 4 this year made a decision on eligibility for the concession.

– In accordance with the Law on Concessions, was conducted a negotiating procedure for the concession and defined the elements of the Concession Agreement and the proposal of the contract were approved by the Commission for Concessions – led the line ministry.

They specified that the concession is granted for a period of 50 years, and that the value of investments 382,407,793 mark.

– Height of the single concession fee amounts to 764,816 KM, and the concessionaire is obliged to pay tax at the conclusion of the contract. The fee for use is 3.6 percent of the annual revenue generated by performing the concession activity – they said from this Ministry.

According to them, for the establishment of a company was given deadline of 12 months, and the signatory of the Concession Agreement will be “Elektroprivreda RS”, with the consent of “Hydroelectric Power Plants on the Drina” in Visegrad. This for the “HPP on the Drina” represents the most significant development project in the future, where was estimated total annual production of HPP Buk Bijela 332.3 gigawatt-hours of electricity, while the installed flow of 350 cubic meters of water per second.

According to the information “Independent” says that in the future follow the activities on establishing a joint company HE Buk Bijela.

Mile Lakic, director of “HPP on the Drina” in Visegrad, said yesterday that the activities of this project will go ahead as planned, following the signing of the concession contract, which is expected in the coming days, agencies report.

– After that, in accordance with the agreement we have with EDF, a year has been earmarked for preparatory works and preparatory activities and after that will be formed company that will manage the construction of the Buk Bijela – said Lakic.

He added that their stake in the start to be invested funds on the spot, and that it is infrastructure, some buildings and some equipment that can be used from the period of the previous activities on this project.

– The assets are estimated at around EUR 9 million and that enters tomorrow in total investment value – said Lakic.

Renewable Energy Projects in Bosnia and Herzegovina

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