Kamengrad lignite power plant, Bosnia-Herzegovina
An idea to build a power plant at the open-cast Kamengrad coal mine near Sanski Most in the Federation of Bosnia and Herzegovina has been around for years, but in November 2017 it took a step forward with the signing of a Memorandum of Understanding between Energy China International and the construction supplier Lager d.o.o. for a 2 x 215 MW plant.
Stay informed
We closely follow international public finance and bring critical updates from the ground.
Background
An idea to build a power plant at the open-cast Kamengrad coal mine near Sanski Most in the Federation of Bosnia and Herzegovina has been around for years, but in November 2017 it took a step forward with the signing of a Memorandum of Understanding between Energy China International and the construction supplier Lager d.o.o. for a 2 x 215 MW plant.
Few details are available about the plant, and it has no environmental permit and no financing. As with other plants across the region, unrealistic employment promises have already been made. In December 2017 head of the Sanski Most District Faris Hasanbegović stated that it would provide 1000 workplaces.
This does not appear to have convinced local people, however. As it would be a new power plant, it has attracted much more opposition locally than most other planned plants in the country. Sanski Most is located on the beautiful river Sana and prides itself on having no fewer than nine rivers in the district altogether. As a scenic and green area many of its residents feel that the power plant will spoil its potential for agriculture and tourism rather than bringing prosperity.
At a public debate on the adoption of the Una-Sana Canton spatial plan in August 2018, Sanski Most residents and the local council demanded the removal of the power plant project from the plan. This was carried out, although the plan was never adopted. In November 2019, another presentation of the Kamengrad coal power plant project appeared on the agenda of the Sanski Most Municipal Council. However, the meeting was cancelled after public pressure.
Another issue is that the concession for the mine was awarded to Lager d.o.o. after a bankruptcy procedure was carried out for the previous operator, RMU Kamengrad, but in 2017 the bankruptcy decision was declared illegal by the Constitutional Court of Bosnia and Herzegovina and returned to the Una-Sana Canton court.
As of early 2024, the plant is very unlikely to go ahead but has not been officially cancelled.
Latest news
Western Balkans: Civil society groups call on European Commission to strengthen support for just transition
Press release | 4 October, 2024A group of civil society organisations, including CEE Bankwatch Network, are calling on the European Commission and other actors to step up support for a just transition in coal-dependent communities in the Western Balkans.
Read moreWestern Balkans: coal pollution increases due to government failures – new report
Press release | 17 September, 2024In 2023, Western Balkan governments’ dereliction of their law enforcement duties again allowed an increase in sulphur dioxide (SO2) pollution from the region’s antiquated coal power plants, according to the sixth edition of Bankwatch’s Comply or Close report, published today (1). Dust and nitrogen oxides (NOx) pollution from coal plants also continued to exceed legal limits.
Read moreEnvironmental NGOs demand halt to KfW controversial biomass investments in Serbia
Press release | 29 July, 202441 environmental organisations from the Western Balkans, Germany, and across Europe have called on German state-owned development bank KfW to stop financing wood biomass energy in Serbia in order to avoid forest degradation risks and locking Serbia into further dependency on high-carbon energy sources.[1]
Read moreRelated publications
Risks for coal and electricity investments in the Western Balkans, Ukraine and Moldova due to state-aid rules
Study | 8 June, 2015 | Download PDFBy signing the Energy Community Treaty in 2005, countries in the Western Balkans, Ukraine and Moldova agreed that the European Union’s competition rules are to be applied also within their territory. A number of energy sector investments are being planned that may not so far have taken adequate account of State aid rules. This briefing therefore provides a summary to draw attention to relevant requirements of EU law and highlight the risks of failure to take them into account when planning investments. The account when planning investments.
Where will all that power go? New study assesses extravagant energy ambitions in the western Balkans
Bankwatch Mail | 14 May, 2015 |Western Balkan countries have ambitious plans to increase their electricity generation over the next years. But what will happen if they all become a regional energy hub? Will there be a demand for all the available electricity?
EBRD digs in deeper with Serbian coal king
Bankwatch Mail | 14 May, 2015 |Earlier this year, Serbian media reported that the EBRD was considering providing a new EUR 200 million loan for the financial restructuring of the state-owned electric utility power company of Serbia, EPS. The EBRD Director for Serbia, Mateo Patrone, was quoted by B92.net saying that the loan is aimed at helping the financial restructuring of EPS. Meanwhile, the EBRD’s country strategy for Serbia, approved by its board of directors last April, highlights the bank’s “key role in promoting energy efficiency and renewable energy” for the country.