17 Nov 2015
Thermal Power Plant Tuzla Unit 7: location — the existing Tuzla thermal power plant site; replacing lignite cogeneration units; installed capacity of 450 MW plus 270 MW of thermal energy; annual production of 2,756 GWh; construction investment estimated at BAM 1.5 billion (BAM 1.65 billion including the mine); financing structured as a project partnership.
Although conceived as a partnership, with only one bid received (from a Chinese consortium) the project appears set to rely solely on credit financing — which would require state guarantees from Bosnia and Herzegovina, a difficult ask given the country's political landscape and one requiring significant compromise. Whether decision-makers proceed with TPP Tuzla 7 or TPP Banovići instead (given questions around property rights, GDP concentration, and consumption), or whether focus shifts to TPP Kakanj Unit 8 and related mining investment, remains an open question — as does which project the current governing coalition actually supports, and what is realistically feasible both technically and financially.