Serbian power monopoly EPS, Bosnia’s Serb Republic power utility EPRS and Italy’s SECI Energia have signed a preliminary strategic partnership agreement for the construction of three hydro power plants with a combined capacity of 320 megawatts, Bosnian media reported.
The three partners should now adopt feasibility studies before establishing a joint venture company that will be in charge of the Srednja Drina hydro power project, daily Nezavisne Novine (www.nezavisne.com) quoted the head of EPRS, Branislava Milekic, as saying at Friday’s signing ceremony.
The Srednja Drina project envisages the construction of the Dubravica, Tegare and Rogacica power stations and is estimated to cost 870 million euro ($1.2 billion), the daily quoted the Serb Republic’s Energy Minister Zeljko Kovacevic as saying on the same occasion.
The plants will be built along the middle Drina river. The 346 kilometre long Drina river forms most of the border demarcation between Bosnia and Serbia.
Milekic said SECI Energia will own 51% of the planned joint venture company, while the two power utilities will control the remaining 49%.
She added that the Italian government will provide subsidies to SECI Energia for the electricity produced by the Srednja Drina hydro power complex for a period of 15 years.