The European Bank for Reconstruction and Development (EBRD) is set to provide a €8.3m loan to the capital of Republika Srpska in Bosnia and Herzegovina (B&H) to support the construction of a new biomass-powered boiler plant.
To be provided under the bank’s Green Cities Framework, the fund will be used to acquire an equity stake in Eko Toplane, the builder, owner, and operator of the new 49MW district-heating boiler plant.
To be situated in Banja Luka, the plant will be powered by wood biomass.
Banja Luka Mayor Igor Radojičić said: “With this project the city is resolving one of its biggest infrastructure problems, reliable and sustainable district heating.
“It will also considerably reduce air pollution. But we do not stop here.
“We are working on a number of new projects to improve utility services in Banja Luka.”
Once completed, the biomass-powered facility is expected to demonstrate the potential of sustainable and greener energy generation for the economy and consumers across B&H.
EBRD’s B&H head Ian Brown said: “It is a pioneering approach that combines financial and ecological considerations.
“It will demonstrate that commercially sound and environmentally friendly operations are not only possible, but indeed represent the way forward.
“It can demonstrate the key role of the private sector in delivering services for the public. We also thank the UN for their support with this project.”
EBRD has so far invested more than €2bn in more than 140 projects throughout B&H.