Ebrd Arranges $52 Mln Loan To Replace Coal: fired plant in Bosnia

Banka Intesa Sanpaolo dd

15/03/2019 11:54

SARAJEVO, March 15 (Reuters) - The European Bank for
Reconstruction and Development (EBRD) has arranged a 46 million
euro ($52.09 million) financing package to replace a highly
polluting coal-fired plant in the central Bosnian town of
Zenica, the bank said on Friday. 
    The new combined gas-fired co-generation plant, Toplana
Zenica, will supply power and heat to Zenica and its largest
employer, an ArcelorMittal steel plant  MT.AS , the bank said in
a statement.
    The ageing steelworks plant, which relies on coal for nearly
half of its fuel input, has been the sole external provider of
heating in the winter and a major source of pollution in
Bosnia's fourth largest city.
    ArcelorMittal Zenica will form a joint venture with the city
of Zenica and two Finnish companies, KPA Unicon and Finnfund, to
implement the project aimed at securing greener and more cost
efficient energy production, the statement said.
    The EBRD will provide a 28 million euro loan for the project
and Banca Intesa Sanpaolo S.p.A. BKPR.LJ  a loan of 23 million
euros.
    "We are pleased to sign this investment today which combines
our strength as a financial institution with our goal to promote
the green economy," said Zsuzsanna Hargitai, the EBRD Director
for the Western Balkans.
    Environmentalist groups have urged European Union's policy
makers to take a tougher stance on air pollution from the
Western Balkan's coal power plants, blaming the fumes for 3,900
deaths across Europe and health costs of up to 11.5 billion
euros a year.  urn:newsml:reuters.com:*:nL5N20C0NY
    Earlier this week, the European Union executive in charge of
the bloc's enlargement policy criticised the Bosnian authorities
for approving a Chinese loan guarantee for a new coal-fired
power plant in Tuzla.  urn:newsml:reuters.com:*:nL8N210347
    
 ($1 = 0.8832 euros)

 (Reporting by Daria Sito-Sucic; Editing by Kirsten Donovan)
 ((daria.sito-sucic@thomsonreuters.com; +38733 295 484; Reuters
Messaging: daria.sito-sucic.thomsonreuters.com@reuters.net))