A state-owned power distribution company in Bosnia and Herzegovina is to receive a €15 million (£13m) loan.
The European Bank for Reconstruction and Development (EBRD) and the Taiwanese Green Energy Special Fund (GESF) aim to strengthen the resilience of the Republika Srpska region’s local economy by each lending up to €7.5 million (£6.5m) to ZP Elektrokrajina.
The loan will enable the electricity company to improve the reliability of power supply, strengthen the distribution network in order to better integrate renewable sources of energy and reduce technical and commercial losses.
This alone is expected to translate into emissions savings of around 63,000 tonnes of Carbon Dioxide per year.
Ian Brown, Head of the EBRD in Bosnia and Herzegovina, said: “This is a pioneering agreement and we are very pleased to be able to sign it today.
“The provision of our first non-sovereign loan in the Republika Srpska is testament to our belief in its economic potential. At the same time the loan addresses one of the core issues by supporting a more efficient and stable system of power distribution which will benefit commercial and private customers as well as the environment.”
Energy efficiency in the Western Balkans previously received a €30 million (£25.54m) boost.