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The Concession Agreement signed for the construction of the wind plant Hrgud


Minister of Industry, Energy and Mining of the Republic of Srpska Petar Đokić and General Manager of the Power Utility of the Republic of Srpska Branislava Milekić signed today the Concession Agreement for the construction and operation of wind plant Hrgud in Berkovići municipality, total value of which amounts to BAM 127 million.

Minister Đokić said that the construction of that wind plant of installed capacity of 48 MW with 16 facilities was planned (3MW per unit), and that it was expected for the project to be completed in the next few years.

He said that the project would be financed by the German Development Bank with 60 million euro loan, and by the Power Utility of the Republic of Srpska, which would provide BAM 8,380,732 for the implementation of the project.

"By signing of this concession agreement, the Government of the Republic of Srpska completed the negotiating procedure and awarded the concession for the construction of the first wind plant in the Republic of Srpska to the Power Utility of the Republic of Srpska", said Minister Đokić.

He recalled that a detailed research had been performed in the past on the territory of Herzegovina, which had shown that there was a possibility to build wind plants at this location.

Minister also said that the Government of the Republic of Srpska was determined to rapidly implement the energy projects in the future, especially those in the field of renewable energy.

"In this way, the Republic of Srpska is going into further strategic development of the energy sector in a way that stimulates the production of energy from renewable sources. This will be the first facility of this type in BiH," said Minister Đokić.

He stated that the project would be implemented in three phases, the first of which included additional research, designing and obtaining necessary permits, the second - the construction, and the third - the operation.

The concession has been granted for a period of 50 years.

Minister Đokić also reminded that at Trusina location in Herzegovina the concession had been granted to another concessionaire "Eol prvi", which carried out intensive activities under the contract.

He said he expected for the concrete works on the construction of that facility to be done in 2017, while the wind plant Trusina near Nevesinje should technically be completed in 2018.

General Manager of the Power Utility of the Republic of Srpska Branislava Milekić said that the signing of the concession agreement for the construction of wind plant Hrgud was a starting point ​​to further continue all activities in the Ministry of Finance, line Ministry and Power Utility of the Republic of Srpska that would lead to the conclusion of an agreement with the German Development Bank.

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