POKLECANI WIND FARM

The project concerns the design, construction and operation of an onshore windfarm with total installed capacity of 132 MW, located in the wider mountainous area in the West Herzegovina-Canton in the Municipality of Posusje.

The aim is to increase the security of electricity and the share of renewable energy sources in the electricity system across the country. The investment will help BiH to diversify its energy sources, contributing to long term economic growth and development, in line with the EU Green Agenda embedded in the Economic and Investment Plan for the Western Balkans. The operation supports the EIB's objectives, by promoting the deployment of renewable energy technologies, tackling climate change through climate mitigation measures and improving security of energy supply.

The project concerns the development of a 132MW onshore wind farm near Poklecani in Bosnia and Herzegovina.

The financing of the project through the EIB will support the achievement of the decarbonisation targets set out in the draft National Energy and Climate Plan. Project is consistent with the EU's Economic and Investment Plan for the Western Balkans, is in line with the Energy Community framework and EU Green Agenda for the Western Balkans.

The project will produce electricity from low carbon sources and thereby addresses the market failure of negative environmental externalities, through the reduction of carbon and air pollution compared with coal generation. The majority of the generated energy will be subject to a regulated tariff. The remainder is expected to be sold on the wholesale market thereby supporting market integration and development. 

The project is expected to generate a high economic rate of return and positive broader social benefits by producing electricity below the cost of coal based alternatives in the country.

Bank's financial contribution and customized terms are indispensable to reach financial close, as the Borrower has limited access to international capital markets and cannot obtain financing under such terms and with the envisaged maturity. With respect to non-financial contribution, the EIB's involvement is catalytic in mobilising grants under Western Balkans Investment Framework and is setting high standards for environmental, social and procurement matters for which the Bank is providing (unfunded) technical assistance, useful guidance and capacity building.

Environmental impact studies will be carried out as applicable and mitigating and/or compensation measures applied as necessary.

The EIB will require the Promoter to ensure that any procurement procedures are done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.

Under EFSD+ Guarantee