Guarantee for loan - construction of Block 7
In accordance with the Law on debt and guarantees in Federation BiH , JP Elektroprivreda BiH submitted to Federal Ministry of Finance the Request for giving Guarantee refering to construction of Block 7 at TPP Tuzla at Export – Import Bank of China (EXIM bank)
It was submitted together with supporting documentation ( Draft loan agreement ) including draft of the text ( English version and translation) and updated Feasibility Study of Project .
Federal Ministry of Finance and Federal Ministry of Energy , Mining and Industry as per the Law on debt , borrow and guarantees in Federation BiH , launches procedure for negotiations related to borrowing at the (EXIM Bank Export- Import Bank of China (EXIM Bank) on issuing Guarantees per subjected loan .
Net contract price as per EPC Contract for construction of Block 7 amount to EUR 722,35 million excluding VAT .
During negotiations with representatives of Chinese EXIM bank was achieved an agreement for loan duration of 20 years and grace period of 5 years , the repayment period 15 years .
The participation of the loan for financing of the Block is 85 percentage , while the remaining percent of 15 % will be from the funds of Elektroprivreda BiH.
By the construction of Block 7 at TPP Tuzla , Elektroprivreda BiH will have production capacity of great energy efficiency . So involving replacement of the Block 7 will be stopped Block 3 and Block 4. Due to its efficiency , ecological parameters and justifibality Block 7 will use as replacement also for Block 5. and 6. which will be into operation as per required .
Block 7 is anticipated to operate in coogeneration mode by which will be provided longterm supply of heat energy for the cities and design with modern technologies ( BAT) ensuring to be emmision of polutants below allowed limited values and requests of EU and BiH legislatives .
For production of electric and heat energy at the Block 7 is predicted to be use lignit coal from Coal Mine Kreka.