Japanese ODA Loan to Bosnia and Herzegovina

October 20, 2009
Japanese

The Government of Japan has decided to extend to the Government of Bosnia and Herzegovina a Japanese ODA loan of up to 12.633 billion yen to implement the Ugljevik Thermal Power Plant Flue Gas Desulphurization Equipment Construction Project. Notes to this effect were exchanged on October 20 (Tue) in Tokyo between Mr. Katsuya Okada, Minister for Foreign Affairs of Japan, and Mr. Sven Alkalaj, Minister of Foreign Affairs of Bosnia and Herzegovina.
This ODA loan is being extended in order to construct flue gas desulphurization equipment and provide other related equipment (limestone supply equipment, plaster dehydrating system, etc.) for the Ugljevik Thermal Power Plant in Bosnia and Herzegovina.

Approximately 23% of the power generation capacity of the Republic of Srpska, one of the two entities which comprise Bosnia and Herzegovina, is accounted for by the Ugljevik Power Plant. While the power plant is essential for stable power supply to the Republic of Srpska, the level of its sulfur dioxide (SO2) emissions is the worst of all the thermal power plants within Bosnia and Herzegovina. Because of this, necessity to strengthen environmental safeguard efforts has been noted.

This ODA loan is expected to cut SO2 emissions by 98.4% and dust emissions by 66.7%, greatly contributing to environmental improvement in Bosnia and Herzegovina.
Terms and Conditions

(1) Interest: 0.55% per annum

(2) Repayment period: 30 years (including a 10-year grace period)

(3) Procurement: General untied

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