EC does not approve the Tuzla 7 deal

European Commission advised the Bosnian Government not to provide guarantees for the bank loan of the Tuzla 7 project. The investment in block 7 of the Tuzla power plant is estimated at €614 million, 85% of which is to be financed through a loan by the Chinese based Chin Exim bank. Government guarantees are seen by the EC as subsidising the power plant and therefore distorting the country’s energy market.

Source: Reuters