German Financial Cooperation provides EUR 60 million loan for the construction of Wind Farm “Hrgud”.
Today the loan agreement for the financing of Wind farm Hrgud was signed between the Ministry of Finance and Treasury of Bosnia and Herzegovina 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 abatement of CO2 emissions due to the project is expected to amount to 108,000 tons per year. Hrgud is located at the Municipality of Berkovići in Herzegovina, around 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 EUR 60 million, while the implementing agency Elektroprivreda RS is contributing own funds of EUR 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 Dr. Matthias Schmidt-Rosen, Director of KfW Office for Bosnia and Herzegovina at the signing.