EBRD to finance biomass heat transition in Banja Luka
The European Bank for Reconstruction and Development (EBRD) has announced that it will provide an EUR 8.3 million loan to support the construction of a 49 MW woody biomass-fired district heat boiler in Banja Luka under the it's Green Cities Framework.
Under its Green Cities Framework, the EBRD will provide an EUR 8.3 million loan to the capital of Republika Srpska, one of the two entities that make up Bosnia and Herzegovina, for the acquisition of an equity stake in Eko Toplane d.o.o, The newly established district heating company is the builder, owner and operator of the new plant.
According to the EBRD, Bosnia and Herzegovina suffer from particularly high energy intensity, with a high proportion of expensive and polluting heavy fuel oil in the energy mix and untapped resources in terms of energy savings and efficiency. The introduction of a biomass-powered plant is expected to showcase the potential for sustainable and greener generation of energy for the economy and consumers.
We are very proud to sign this agreement with the city of Banja Luka today. 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 to the public. We also thank the UN for their support with this project, said Ian Brown, Head of the EBRD in Bosnia and Herzegovina.
Green Energy Transition (GET)
The EBRD is a “big supporter” of green energy and under its Green Economy Transition (GET) approach, it aims to raise its investment in this area to more than 40 percent of annual business investment by 2020 – which it says it is “well on track” to achieve this target.
The goal of the EBRD’s Green Cities Framework is to achieve significant environmental improvements and promote the green transition quality within selected cities. It combines investment with capacity-building and facilitates coordination among stakeholders. On this basis, for each participating city, a specific Green City Action Plan is being developed and implemented.
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. I would like to thank the EBRD for the excellent support on this project. I hope that we will manage to expand our cooperation in near future, Igor Radojičić, the Mayor of Banja Luka.
Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has invested more than EUR 2 billion in over 140 projects in the country. The EBRD focuses on supporting restructuring and expansion of the local private sector, forging closer links with wider regional markets and promoting a more efficient and sustainable use of resources.