POWER GENERATION I

closed

The project is part of a long range plan to develop the Neretva River in the Republic of Bosnia-Herzegovina, one of the republics of Yugoslavia most endowed with hydro power potential and one of the country's major energy producers for the national interconnected transmission network, but one of economically least developed republics. The project consists of three concrete gravity dams in continuous cascade on the Neretva river and their associated power stations and transmission links. The installed capacities would be 116 MW, 205 MW, and 65 MW, respectively. The proposed loan is aimed at assisting the economic development of the republic, as well as the development of Yugoslavia's hydro resources (Yugoslavia's second largest energy source next to coal and lignite). The project is designed to meet the need for peaking capacity at least cost and improve the thermal/hydro plant mix within the republic. The proposed borrower for this loan, EBH, the republic apex power sector organization, is a borrower under the Bank's First and Second Power Transmission Loans (Loan Numbers 836-YU and 1469-YU) and the institution-building efforts under these loans would be reinforced through this proposed loan.