Reservoir Capital Corporation, through its wholly owned subsidiary REV d.o.o. Foca, has been granted 30 year concessions from the Government of the Republika Srpska to develop and build three run-of-river hydroelectric projects on the Cehotina River.
The three projects have a combined capacity of 17.76MW and a projected output of 69.61GWh/yr. The concessions cover a 26km section of the Cehotina River, which has an elevation drop of 114m and median flow rates ranging from 20m3/sec at the Montenegrin border, to 23m3/sec downstream where it joins the Drina River. The total natural energy capacity for this section of the Cehotina River is 24MW (211GWh/yr), from which the company’s consultant, ENCOS Energy Consulting Services D.o.o. ("ENCOS") of Sarajevo, has designed three power plants: Luke (4.85MW); Falovici (9.262MW); and Godijeno (3.649MW).
The Cehotina Projects are located geographically quite close to the Company’s flagship Brodarevo Project in Serbia and to the new transmission infrastructure being constructed to better connect the Bosnian and Serbian grids with the Montenegrin coast and Italy. The ENCOS preliminary development and construction cost estimate for the Cehotina Projects is approximately $58M. Unlike Brodarevo, there are no major road displacement costs and the Cehotina Project also benefits from a higher average capacity factor of approximately 56%. Under the terms of the Concession Agreement, the Company will pay a 3% gross revenue concession fee to the government of the Republika Srpska.