Senad Salkic, executive director for capital investments of PE “Elektroprivreda BiH”, said that they are fully satisfied with the conditions specified in the credit arrangement for financing of Block 7 of TPP “Tuzla” and that they represent the result of negotiations that took place in China last week.
“Elektroprivreda BiH” has received a Letter of Intent from the Chinese Exim Bank, with specified conditions of credit arrangement and the offer of 20 years to repay the loan was accepted, which was the goal of the EPBiH.
“After this offer of Exim Bank, we expect to officially make the application for the loan and to manage to agree a contract on the offered conditions until November and prepare it for signature on 16 + 1 summit in early November in Latvia. Before that, ratification by the parliaments of the FBiH and the People’s Republic of China is required and it is a procedure that needs to be done,” said Salkic.
Tenders for the preparatory work, he said, can be called by the end of the year, so that works on preparation of the site for construction of Block 7 of TPP “Tuzla”, can officially start in the spring or the beginning of the construction season.
“If everything is done dynamically as we plan, Block 7 should be ready until 2022,” said director Salkic.
According to him, Block 7 is a replacement block and it will shut down the blocks 3 and 4 in TPP “Tuzla”, while blocks 1 and 2 were previously shut down, thus it completely replaces the small blocks and block 3 and 4 with its capacity.
The value of the investment is 722 million EUR (1.4 billion BAM), which represents the biggest post-war investment in electric power sector of the country.