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EBRD arranges USD 52 million loan to replace coal-fired plant in Bosnia

Power News - Published on Tue, 19 Mar 2019

Image Source: Reuters
Reuters reported that European Bank for Reconstruction and Development has arranged a 46 million euro (USD 52.09 million) financing package to replace a highly polluting coal-fired plant in the central Bosnian town of Zenica. The bank said that the new combined gas-fired co-generation plant, Toplana Zenica, will supply power and heat to Zenica and its largest employer, an ArcelorMittal steel plant, the bank said in a statement.

The ageing steelworks plant, which relies on coal for nearly half of its fuel input, has been the sole external provider of heating in the winter and a major source of pollution in Bosnia's fourth largest city.

ArcelorMittal Zenica will form a joint venture with the city of Zenica and two Finnish companies, KPA Unicon and Finnfund, to implement the project aimed at securing greener and more cost efficient energy production.

The EBRD will provide a 28 million euro loan for the project and Banca Intesa Sanpaolo S.p.A. a loan of 23 million euros.

Mr Zsuzsanna Hargitai, the EBRD Director for the Western Balkans said that "We are pleased to sign this investment today which combines our strength as a financial institution with our goal to promote the green economy.”

Environmentalist groups have urged European Union's policy makers to take a tougher stance on air pollution from the Western Balkan's coal power plants, blaming the fumes for 3,900 deaths across Europe and health costs of up to 11.5 billion euros a year.

Source :

Posted By : Rabi Wangkhem on Tue, 19 Mar 2019
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