The European Bank for Reconstruction and Development is providing a loan of up to 7 million Euros (US$8.1 million) for a new biomass boiler plant in Prijedor, a municipality in the north west of Bosnia and Herzegovina.
The funding, the first EBRD investment in renewable energy in Prijedor municipality, will lead to significant cost savings for Toplana AD Prijedor, the plant operator majority owned by the local authorities. The new boiler will no longer be fuelled by oil, but by wood chips, a sustainable and cheaper alternative.
The project will also be supported by grant funding of up to 2 million Euros from the Swedish International Development Cooperation Agency.