FBiH approves nearly €22m in KfW grants for Vlašić 50 MW wind farm near Travnik

The Government of the Federation of Bosnia and Herzegovina (FBiH) has approved two grant agreements from German development bank KfW to support both the build-out and the subsequent monitoring and optimization work for the 50 MW Vlašić wind farm project near Travnik. The financing matters for investors because it reduces upfront funding pressure while also tying part of the support to environmental oversight and performance improvements after commissioning.

Nearly €22 million in grant financing

Decisions adopted on the proposal of the Federal Ministry of Finance allow the Federation to accept grant financing totaling nearly €22 million for a project developed by state-owned utility EPBiH. Of this total, up to €19.93 million is earmarked for preparatory works, construction activities, and technical assistance connected to the wind farm.

The larger funding package also includes coverage for costs associated with exchange-rate fluctuations, a detail that can be particularly relevant for cross-border project budgets where procurement and services may be exposed to currency movements.

Post-construction funding for monitoring and efficiency

A second grant of up to €2 million has been approved for post-construction activities at the Vlašić site. These funds are intended for environmental monitoring and operational optimization measures, including a two-year study focused on bird and bat populations in the area.

Part of this post-construction support will also finance technical compliance verification of installed equipment. In addition, it includes measures designed to improve operational efficiency through predictive maintenance and production management, supported by enhanced use of project data.

By pairing construction-phase support with longer-term monitoring and performance work, the KfW grants aim to address both regulatory-facing requirements—such as environmental studies—and practical operating needs once turbines are in service.