The German Development Bank (KFW) will provide a loan of 65 million euros (88.8 million U.S. dollars) to finance the construction of a wind farm in Bosnia and Herzegovina (BiH), local media reported on Thursday.
The KFW approved the loan to Elektroprivreda BiH, the state electricity company of BiH, within the framework of development cooperation program between Germany and BiH. Repayment period is 15 years,including a grace period of three years.
The total cost of building the wind farm is estimated at 71.8 million euros, said Elektroprivreda BiH, adding that the company will use some of its funds along with the loan.
The wind farm will be built in Podvelezje, near Mostar in southwest BiH. The wind farm, when finished, will have 16 wind turbines with a total power capacity of up to 48 MW (megawatt) and annual production of electricity up to 100 GWh (gigawatt hour). (1 U.S. dollar = 0.73 euro)