Bosnian electricity distributor Elektrokrajina plans to invest about €30 million in a three-year reconstruction of its distribution network. The programme is designed to reduce losses and improve reliability across five cities and 16 municipalities. The investment is aimed at upgrading parts of the existing system serving those localities.
Network modernisation scope
The reconstruction will modernise around 1,700 km of medium- and low-voltage lines. It also includes the replacement of roughly 43,000 poles. Together, the works are expected to cover about 12% of the company’s network.
Elektrokrajina targets cutting distribution losses to around 6% from 10%. The company estimates the loss reduction could generate annual savings exceeding €2 million. Implementation will focus particularly on peripheral areas where outages and network problems occur more frequently.
EBRD financing and loan terms
The programme will be financed through a €38 million loan from the EBRD. Of the total, €30 million is allocated to reconstruction while €8 million will refinance existing obligations. The financing package includes a four-year grace period.
The loan maturity is set at 20 years. This structure supports the three-year reconstruction plan while spreading repayment over a longer period. The programme’s funding arrangement is therefore linked to both capital works and refinancing components.
Procurement under EBRD procedures
Procurement for the grid overhaul will be divided into three lots under EBRD procedures. This approach is expected to open a pipeline of distribution network work for regional contractors. The lot structure is part of how the programme will be implemented within the lender’s procurement framework.
