In a significant move to bolster its hydropower capabilities, Hidroelektrane na Drini, a subsidiary of the state-owned ERS, has approved an additional 7 million euros for the HPP Bistrica project. This decision was reached during an extraordinary shareholders’ meeting on February 16, reflecting a continued commitment to enhancing energy infrastructure in Bosnia and Herzegovina.
The capital increase will be realized through the conversion of receivables into equity, effectively augmenting the registered capital of HPP Bistrica. This strategic investment is aimed at facilitating the ongoing construction agreement with the Chinese engineering firm China National Aero Technology International Engineering Corporation (AVIC), which is pivotal for advancing the project.
This recent financial injection marks a continuation of substantial investments made in HPP Bistrica over recent years. Historical financial records indicate that Hidroelektrane na Drini previously contributed 2 million euros in 2020, followed by 21 million euros in 2022, and an additional 11.7 million euros in 2023. With the latest funding, total investments in the project have now reached approximately 40 million euros.
The overall cost for constructing HPP Bistrica is projected at 102 million euros. The financing strategy includes a significant loan of around 75 million euros from China’s Exim Bank, while the remaining funds are expected to come from the government of the Republic of Srpska (RS). The RS regained ownership of HPP Bistrica in 2019, marking its second acquisition of the facility after it was first privatized in 2008. The initial sale to Kaldera Company for 3.5 million euros was followed by a repurchase eleven years later for 11 million euros, highlighting the evolving ownership landscape.
The HPP Bistrica complex comprises three cascade hydropower plants—B1, B2a, and B3—located along the lower course of the Bistrica River, near Foča. Collectively, these plants have an installed capacity of 39 MW, with an estimated annual electricity generation of approximately 152 GWh. This capacity is vital for meeting regional energy demands and contributing to Bosnia and Herzegovina’s energy security.
