The Council of Ministers of Bosnia and Herzegovina has cleared the way for a major renewable energy investment by endorsing a draft grant agreement with the European Investment Bank (EIB) for the Poklečani wind project. The grant, worth just over €42 million, is being provided through the Western Balkans Investment Framework (WBIF) to support construction of the new wind farm.
The project will develop a 132 MW wind farm in the West Herzegovina Canton, together with all necessary supporting infrastructure, including a substation and connection to the national electricity network. Grant funds will be allocated to the Federation of Bosnia and Herzegovina (FBiH), while implementation will be carried out by the state-owned utility EP HZHB.
In parallel, the Council of Ministers has approved the launch of negotiations on a separate loan and project agreement with Germany’s KfW bank, forming part of a broader financing package valued at around €75 million.
The wind farm will be located in a mountainous area near Posušje, on the wider Štitar mountain range close to Rakitno. The project foresees the installation of up to 20 wind turbines, each with a capacity of up to 6.6 MW, delivering a total installed capacity of up to 132 MW.
Annual electricity generation is expected to reach around 437 GWh, making the project one of the most significant new renewable facilities in the country. Once negotiations on the loan component are completed, the Ministry of Finance and Treasury of Bosnia and Herzegovina will proceed in line with national legislation on public borrowing, debt and state guarantees, ensuring full compliance with the country’s legal and fiscal framework.