Bosnia and Herzegovina backs €103 million EIB loan for 132 MW Poklečani wind project

Bosnia and Herzegovina has moved to secure long-term financing for new wind capacity, approving a €103 million European Investment Bank (EIB) loan intended to expand the country’s renewable energy pipeline. For investors and market participants, the decision matters because it links state-level contracting with implementation by a Federation utility and sets out multi-year repayment terms that shape project risk and funding stability.

Loan approval and who will implement

Lawmakers in the upper chamber of the Federation’s Parliament approved the financing package for the development of a new wind project. The agreement is formally signed at the state level by Bosnia and Herzegovina, while implementation and repayment responsibilities are assigned to EP HZHB, the public utility operating within the Federation.

Terms, timeline and planned use of funds

The EIB financing includes a 25-year repayment period, along with a five-year grace period before full repayments begin. The loan proceeds are earmarked for construction of the Poklečani wind farm near Posušje in West Herzegovina’s mountainous area.

Project scale and expected output

The planned facility will feature 20 wind turbines with a total installed capacity of 132 MW. Once operational, it is expected to generate approximately 437 GWh of electricity annually, supporting growth in regional renewable energy supply.

Earlier grant support under WBIF

The loan approval follows an earlier step: in January, Bosnia and Herzegovina’s Council of Ministers endorsed a related measure by approving a €42 million grant agreement with the EIB through the Western Balkans Investment Framework (WBIF). Together, the grant endorsement and the subsequent loan approval provide additional financial backing for development of the Poklecani wind project.