EFT and China Development Bank in EUR 350 million financing deal for Stanari TPP

China Development Bank (CDB) is providing a EUR 350 million structured credit facility for the Energy Financing Team Group (EFT), to finance the building of a 300 MW thermal power plant in Bosnia and Herzegovina. The signing of the deal in Banja Luka tomorrow follows the recent announcement of China’s new $10 billion credit line for infrastructure projects in eastern and central Europe, announced by Premier Wen during his recent visit to Poland.

EFT operates the Stanari lignite mine in Bosnia and Herzegovina. In May 2010 it signed an Engineering, Procurement and Construction (EPC) contract with China’s Dongfang Electric Corporation (DEC) to build the modern 300 MW thermal power plant next to the mine. The plant design complies with tight EU standards on emissions and will come on line in early 2016. The total value of the project is EUR 550 million.

Milorad Dodik, the President of Republika Srpska, the Serbian entity in Bosnia and Herzegovina, said the deal sent a strong signal to international investors. “We have managed to address a number of complex issues to conclude this deal and I am delighted with the result. It demonstrates to everyone the positive climate we have created for major long-term investment in our energy sector” said Dodik.

EFT is the leading energy trading and investment group operating in central and eastern Europe. In 2011 it delivered 41.2 TWh of electricity in 20 countries, with sales of EUR 2.17 billion.