FIPA Activities

Italians are preparing an investment worth around 150 million EUR in BiH

6/21/2016

The Director of the Foreign Investments Promotion Agency of BiH (FIPA) Gordan Milinić and his associates talked with Zdravko Aćimović, Director of Alfa Invest - a partner of the Italian company Pyrox, Turin, for South Eastern Europe, about the planned investments of Pyrox in the amount of about 150 million EUR in the co-generation projects on wood biomass in BiH.

This investment will include 20 underdeveloped municipalities in FBiH and 20 municipalities in RS which dispose of wood waste.

Italian Pyrox has its own technology for the production of electricity and thermal energy on the basis of solid biomass, which can be used to heat homes, greenhouses, and other facilities.

Installing and starting-up of one plant would employ 25 workers, and according to the business plan, each municipality that participates in this project, would have an annual revenue of one million EUR from the sale of electricity and thermal energy.

In addition to the own investors' funds, the project is financially supported by Uni Credit Bank of Italy, and Investment Fund of Ireland. Municipalities would participate in financing of the investment in the amount of 10% to 15%. Except that for this figure, there is a possibility for additional arrangement.

Considering that it is about renewable energy projects, there is additional possibility to withdraw finance from the European funds for this purpose.

It was agreed to organize in mid-July 2016 a meeting between investors and mayors and heads of commercial departments of 40 municipalities where it would be presented opportunities offered by investor, as well as possibilities of municipalities when it comes to potential of the waste from biomass, manners f implementation of the investment, and obligations of both parties.

FIPA will coordinate the organization of the meeting and will provide the necessary services both to investors and municipalities with the aim to contribute to a faster realization of the investment.

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