Contracts Worth EUR 175 Million Signed



Deputy Chairman of the Council of Ministers of BIH and Minister of Finance and Treasury Dr Nikola Špirić and Ambassador of the FR Germany Urlike Knoc signed Financial Cooperation Contracts for 2010 and 2011, of total value of EUR 175 million.

The Contracts between the Council of Ministers of BIH and Government of the FR Germany pertain to the Credit Bank for Reconstruction and Development (KfW) concessive loans, and their proceedings will be directed for water supply, energy sector and environmental protection projects in BIH.

Minister Špirić and Ambassador Knoc emphasised that the financial cooperation, implemented through all contracts contributes considerably to economic development in BIH.

“These pojects are especially important for local communities and will contribute to their development. We will continue successful cooperation with the German Government and KfW, additionally encouraged by the interest German investors show for BIH”, Minister Špirić said.

 The Contract between the Council of Ministers of BIH and Government of the FR Germany on Financial Cooperation is for year 2010 is worth EUR 98 million and it refers to the following projects: the “Energy Sector V Programme” (the Second Tranche of Pump Hydro Power Plan Vrilo) worth EUR 30 million, “Incentive to Renewable Energy II” (windmill park in Republika Srpska), worth EUR 50 million; and “Water Supply and Removal of Waste Waters in BIH II”, worth EUR 18 million, with EUR 1.8 million grant.

The Contract between the Council of Ministers of BIH and Government of the FR Germany on Financial Cooperation is for year 2011 is worth EUR 74 million, and its funds are intended of the following projects: “Hydro Power Development Incentive Programme” (among them there Hydro Power Plant Janjići), worth EUR 50 million, and “Water Supply and Removal of Waste Waters in BIH III” worth EUR 24 million.

The Loan terms and conditions for these projects will be negotiated under a separate agreement with the KfW, but their planned repayment term is 15 years with a three year grace period.

The ceremony of signing of the Contract was attended by KfW representatives, led by the KfW General Manager for Europe and Asia Roland Siller.

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