The European Investment Bank (EIB) has approved €37.5m loan to Bosnia's power utility Elektroprivreda BiH (EPBiH) to support construction of a 20MW hydropower plant.
To be built on the Bosna river, the Vranduk hydro power plant is expected to cost €75m. Earlier, the project has received a loan of €26m from EIB.
The remaining cost of the project will be funded by EPBiH.
Last week, EPBiH has announced the extension of deadline for firms looking to pre-qualify for a contract to build the project until 29 April.
Currently, EPBiH operates two coal-fired plants and three hydropower plants which have a capacity of 1,165MW and 517MW, respectively.