Active Mixed AidData Chinese Aid

China Eximbank provides EUR 189.4 million loan for 159.9 MW Dabar Hydroelectric Power Plant Construction Project

¥189.41M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Hidroelektrana Dabar (HPP Dabar)
Country	Bosnia and Herzegovina
Start Date	Dec 31, 2021
End Date	Jul 24, 2031
Duration	3,492 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66345`

Grant Description

China Eximbank provides EUR 189.4 million loan for 159.9 MW Dabar Hydroelectric Power Plant Construction Project On July 28, 2011, the Government of the Republic of Srpska granted a concession to HE DABAR d.o.o.

Trebinje (also known as Hidroelektrana na Trebišnjici and HET) — a project company and special purpose vehicle — for the construction and operation of the 159MW Dabar Hydroelectric Power Plant.

Then, in July 2013, China Eximbank signaled its willingness to provide a buyer’s credit loan to finance 85% of the cost of the commercial contract (85% x EUR 179.9 million = EUR 152.9 million) for this project.

📋 Loan / Grant Terms

💰 Loan Amountwere as follows: a 3% interest rate

📅 Maturity15 years

⏳ Grace Period4 years

💹 Interest Rate3%

Then, on December 7, 2015, the Republic of Srpska and China International Water & Electric Corporation (CWE) signed an MOU regarding the 159MW Dabar Hydroelectric Power Plant Project. However, this agreement did not result in the signing of an EPC contract.

Almost five years later, on May 4, 2020, Energy China Gezhouba Group and HPP Dabar L.L.C. — a wholly owned subsidiary of HET — signed an ‘EPC + F’ contract (worth approximately EUR 222,834,120 or RMB 1.7 billion) for the 159MW Dabar Hydroelectric Power Plant Project.

Then, on December 31, 2021, Hidroelektrana Dabar (HPP Dabar) — a special purpose vehicle that is owned by HET — signed a EUR 189,409,002 loan agreement with China Eximbank for the 159.9 MW Dabar Hydroelectric Power Plant Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountwere as follows: a 20-year maturity

📅 Maturity20 years

⏳ Grace Period4 years

The loan was collateralized.

However, as additional credit enhancements, the Republic of Srpska issued a government repayment guarantee and the borrower purchased a 20-year credit insurance policy from Sinosure.

The proceeds of the loan are to be used by the borrower to finance approximately 85% of the cost of a EUR 222.8 million commercial contract that Hidroelektrana Dabar (HPP Dabar) and China Gezhouba Group Company Limited signed on May 4, 2020.

The purpose of the project is to construct the 159.9 MW Dabar Hydroelectric Power Plant located in the city of Trebinje within the Republic of Srpska.

The power plant, which will be part of the planned Gornji Horizonti hydropower complex, is expected to generate 250 GW per year upon completion.

In January 2022, the state-owned power utility Elektroprivreda Republike Srpske (ERS) announced plans for a EUR 218 million capital increase in its subsidiary Hidroelektrane na Trebišnjici (HET) in order to raise money for the construction of the 159.9 MW Dabar Hydroelectric Power Plant. However, ERS insisted that the capital injection would not result in a takeover of HET.

The project's groundbreaking ceremony took place on June 23, 2023, with an estimated completion date 48 months after the start, or 06/23/2027.

📋 Staff Comments

Milbank LLP advised the lender. See https://www.milbank.com/en/news/milbank-advises-export-import-bank-of-china-on-financing-of-central-and-eastern-europes-largest-hydro-ipp.html2. The largest shareholders of HET are ERS (65%), the Pension Reserve Fund Management Company of the Republic of Srpska (10%), the investment fund management company Kristal invest (5,3%), and the Republic of Srpska Restitution Fund (5%).
Evidence of the issuance of a government repayment guarantee can be found at http://sluzbenilist.ba/page/akt/p09Jc0xogztz5k76kjn45hQM=, as well as source IDs 210400, 210401, and 210402.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The Sinosure credit insurance policy was issued on January 24, 2022. It provides EUR 244 million of coverage. See http://www.china-ceec.org/jmhz/202202/t20220204_10639012.htm

📚 Sources & References

China's Dongfang shows interest in construction of Dabar HPP in Bosnia
Memorandum of Understanding signed
Chinese CWE presents offer for construction of HPP Dabar to Republic of Srpska Government
Dabar Hydro Power Plant
Bosnia and Herzegovina
REPUBLIC INVESTMENT OF SRPSKA ENERGY SECTOR POTENTIALS
The continuation of negotiations on construction of HPP Dabar
Chinese CWE presents offer for construction of HPP Dabar to Republic of Srpska Government
Public Call for Expressing of Interest in Construction and Financing of HPP Dabar
Obserwatorfinansowy.pl, ОБАВЈЕШТЕЊЕ О НАБАВЦИ
CWE interested in the construction of HPP Dabar, 【研究园地】“一带一路”面临的国际舆论新特点
进军欧洲水电市场！葛洲坝签约17亿元水电大单 EPC+F买方信贷融资
CURRENT ELECTRIC POWER PROJECTS IN THE REPUBLIC OF SRPSKA
CWE interested in the construction of HPP Dabar
Kineska kompanija CWE ponudila da finansira 85% izgradnje HE Dabar
Report on HPP Dabar project – Bosnia and Herzegovina, 16 June 2016
Kinezi žele da grade HE Dabar, Đokić: Kineski CWE dostavio ponudu za realizaciju projekta HE Dabar
IZVJEŠTAJ O RADU KOMISIJE ZA KONCESIJE REPUBLIKE SRPSKE ZA PERIOD 01.01.2011. - 31.12.2011. godine
IZVJEŠTAJ O RADU I FINANSIJSKI IZVJEŠTAJ ZA 2018. GODINU
HE Dabar
PUBLIC CALL FOR EXPRESSING INTEREST AND CONSTRUCTION AND FINANCING OF HPP 'DABAR', Хидроелектрана Дабар
China Gezhouba to build hydro plant in Bosnia and Herzegovina
达巴尔水电站项目将与中国企业签署合同
THE REPUBLIC OF SRPSKA an entity of Bosnia and Herzegovina €300,000,000 4.75 per cent. Notes due 2026 Issue Price: 98.918 per cent.
Milbank Advises Export-Import Bank of China on Financing of Central and Eastern Europe’s Largest Hydro IPP
Export-Import Bank of China’s €190 Million Financing of Central and Eastern Europe’s Largest Hydro IPP
Dabar Hydro Power Plant - Chexim Loan
Agreement on Construction of HPP Dabar Worth USD 190 Million Signed with Chinese Company
Hidroelektrana Dabar
Hidroelektrana Dabar
ERS plans EUR 218 million capital injection to fund construction of HPP Dabar
SDA: Vlada RS-a gradnjom HE Dabar ugrožava ekosistem Hercegovine, poduzet ćemo korake da to spriječimo
Službeni glasnik BiH, broj 35/22 (Official Gazette of BiH
No. 35/22)
中企承建波黑最大水电站融资协议正式签署进入履约快车道
中国对外承包工程国别（地区）市场报告
驻波黑大使季平出席达巴尔水电站项目开工仪式
驻波黑大使季平赴达巴尔水电站项目部慰问中方员工
中国信保：以绿色金融助力“双碳”目标 - 中国一带一路网
中国进出口银行支持的波黑达巴尔水电站项目融资协议正式生效 - 中国一带一路网
中国信保正式承保波黑达巴尔水电站项目 - 中国一带一路网
Banking, finance and capital markets in Bosnia & Herzegovina
驻波黑大使季平出席达巴尔水电站项目开工仪式
波黑最大水电站项目正式进入履约阶段
中国信保正式承保波黑达巴尔水电站项目
Bosnia & Herzegovina This Week - January 7, 2022
Bosnian Serb government embarks on harmful energy project with Chinese
Republika Srpska to build the Dabar hydropower plant with China Energy Gezhouba
中企承建的中东欧最大水电站项目开工 - 中国一带一路网
波黑塞族共和国已签约项目价值约40亿马克
第三方市场合作！中企承建波黑最大水电站设备采购合同正式签署
中国能建葛洲坝集团波黑塞族共和国达巴尔水电站项目融资协议正式签署--中国水力发电工程学会
葛洲坝集团签署波黑最大水电站设备采购合同--中国水力发电工程学会
Kineski put svile u BiH_ Mnogo planiranog, malo ostvarenog
中企承建的中东欧最大水电站项目开工
驻波黑大使季平出席达巴尔水电站项目开工仪式
Chinese-built Dabar hydropower plant in Bosnia and Herzegovina set to destroy four Emerald and two Ramsar sites
QUARTERLY REPORT ON EXTERNAL DEBT OF BOSNIA AND HERZEGOVINA Second quarter of 2024
QUARTERLY REPORT ON EXTERNAL DEBT OF BOSNIA AND HERZEGOVINA Fourth quarter of 2023
QUARTERLY REPORT ON EXTERNAL DEBT OF BOSNIA AND HERZEGOVINA Third quarter of 2023 (revised report) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Hidroelektrana Dabar (HPP Dabar)

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant