EIB Global Supports Vlašić Wind Farm with €36 Million Loan as Part of Green Transition in Bosnia and Herzegovina

EIB Global Supports Vlašić Wind Farm with €36 Million Loan as Part of Green Transition in Bosnia and Herzegovina

(IN BRIEF) The European Investment Bank (EIB) Global has pledged €36 million for the construction of the Vlašić wind farm in Bosnia and Herzegovina, supplementing the €21 million EU grant. Expected to generate 115 GWh/year of electricity and displace 140,000 tonnes of CO2 annually, the project aligns with the country’s renewable energy goals and contributes to its transition to a low-carbon economy. With an overall investment exceeding €91 million, the wind farm project emphasizes the EU’s commitment to supporting sustainable development and fostering resilient economic growth in the Western Balkans. Additionally, technical assistance grants from the EIB and cooperation with Germany’s KfW development bank aim to ensure the project’s successful implementation and contribute to the region’s energy transition.

(PRESS RELEASE) LUXEMBOURG, 20-Feb-2024 — /EuropaWire/ — EIB Global, the financial arm of the European Investment Bank (EIB) for activities outside the European Union, has signed a €36 million loan for the construction of a 50 MW wind farm on the high plateau of Vlašić mountain, located about 15 km north-west of the town of Travnik. The loan comes in addition to the €21 million in grants allocated by the European Union in December 2023 through the Western Balkans Investment Fund (WBIF).

Aligned with national strategies for renewable energy, the plant includes up to 18 wind turbines and their connection to the national energy grid and is expected to produce 115 GWh/year of electricity. This production is equivalent to the energy demand of 20 000 households and will displace 140 000 tonnes of CO2 a year. Beyond contributing to the country’s renewable energy goals and reducing reliance on coal, this project will support the transition to a low-carbon economy and foster sustainable development.

“As the EU climate bank, this strategic investment demonstrates the EIB’s determination to scale up its financial and technical support for addressing the challenges related to the green transition in Bosnia and Herzegovina and the Western Balkans region. It supports the country’s energy and climate targets, while fostering resilient economic development that ensures a stable energy supply and generates employment. For EIB Global, a leading financier of the energy transition and climate action, it is important to support all countries and regions and make sure this transition is just and sustainable,” said EIB Vice-President Kyriacos Kakouris.

In view of Bosnia and Herzegovina’s commitments to the implementation of the Green Agenda, the country has already started investing in renewable energy production, which will help fight climate change, ensure clean air and boost the national economy.

Minister of Finance of Bosnia and Herzegovina Srđan Amidžić stated: “These types of projects are important, not only in terms of increased climate change, but also in their impact on all of us. The implementation of such projects is important for the whole of Bosnia and Herzegovina, and I hope that there will be many more of them in the future, especially with our partners assisting in development and investing in all regions of Bosnia and Herzegovina equally. It is also important to continue discussing these and similar topics and raising public awareness about renewable energy sources.”

The Vlašić Wind Power Plant project — estimated at over €91 million — has been identified as falling under Flagship 4 — Renewable energy in the EU Economic and Investment Plan. The European Union allocated in total €21 million in grants for its construction. In addition to the EU funds, Bosnia and Herzegovina is providing a contribution of €16.7 million, while the KfW development bank is offering a €16.5 million loan.

“I am glad that the EU has been able to provide €21 million in grants for the construction of the wind farm on Vlašić mountain. Together with our partners, we want to help Bosnia and Herzegovina to take advantage of its favourable climate and geography and start delivering on its path towards a low-carbon economy, reducing coal dependence and fostering sustainable development. The European Union is ready to provide financial resources and expertise to Bosnia and Herzegovina for the energy transition through the Green Agenda for the Western Balkans, the Economic and Investment Plan and the new Growth Plan, and help the energy transition. The energy transition is key to improving the quality of life in Bosnia and Herzegovina and on its path to the EU,” said EU Ambassador Johann Sattler.

In addition, the EIB has provided around €300 000 in technical assistance grants under its Economic Resilience Initiative for the development of this flagship renewable energy project, with the goal of supporting resilient and inclusive growth in the Western Balkans. The investment is expected to be implemented in cooperation with Germany’s KfW development bank under the Mutual Reliance Initiative (MRI), which is able to offer not only financing, but also expertise.

Background information

About the EIB and EIB Global

The EIB is the long-term financing institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

About the EIB in the Western Balkans

The EIB is one of the leading international financiers in the Western Balkans. Since 2009, the Bank has financed projects in the region totalling over €11 billion. For detailed information on the EIB’s activities in the Western Balkans, please visit www.eib.org/en/publications/the-eib-in-the-western-balkans.

About EIB Global in Bosnia and Herzegovina

The EU bank has been active in Bosnia and Herzegovina since 1977. To date, it has invested €3.4 billion, mostly in support of the transportation sector and small and medium businesses. For more information regarding the EIB’s projects in Bosnia and Herzegovina, please refer to:

https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/bosnia-herzegovina/index.htm

Media Contact:

Gordana Kovacevic
g.kovacevic@ext.eib.org
+352437970356

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank