| Project Detail |
Location:
Bosnia and Herzegovina
Project number:
53838
Business sector:
Municipal and environmental infrastructure
Notice type:
State
Environmental category:
B
Approval date:
15 Nov 2023
Status:
Concept Reviewed
PSD disclosed:
15 Sep 2023
Project Description
Provision of a sovereign loan of up to EUR 7 million to the State of Bosnia and Herzegovina, to be on-lent to the Municipality of Pale ("Municipality") through Republika Srpska ("RS") and to be implemented by the municipally-owned district heating company, Gradske Toplane Pale ("the Company"). EBRDs financing will be complemented by an investment grant in the amount of up to EUR 3 million from the Switzerlands State Secretariat for Economic Affairs ("SECO").
The proceeds of the loan will be used to finance part of the modernisation programme for the district heating ("DH") system of the Municipality of Pale (the "Project"). This will include: (i) the construction of a new boiler house with the acquisition of a 10MW biomass boiler, a 10MW back-up natural gas boiler and two 100 m3 heat accumulation tanks; (ii) the replacement of the existing pipeline network as well as the installation of a central seasonal storage and heat substations with monitoring and forecasting systems; and (iii) acquisition of relevant goods and equipment (chip shredder, tractor etc).
Project Objectives
The Project aims at significantly improving the Municipalitys DH system operational efficiency while reducing air pollution resulting from the activity. The Project will also contribute to improving the Companys corporate governance practices and the DH sector in the country. |
