Guarantee for loan - construction of Block 7

In accordance with the Law on debt and guarantees in Federation BiH , JP Elektroprivreda BiH submitted to Federal Ministry of Finance the Request for giving Guarantee refering to construction of Block 7 at TPP Tuzla at Export – Import Bank of China (EXIM bank)

 It was submitted together with  supporting documentation ( Draft loan agreement )  including draft of  the  text  ( English version and translation) and updated Feasibility Study of Project . 
Federal Ministry of  Finance  and  Federal Ministry of Energy , Mining  and Industry as per the Law on debt , borrow and guarantees in Federation BiH , launches procedure for negotiations related  to borrowing  at  the (EXIM Bank  Export- Import  Bank of China (EXIM Bank) on issuing Guarantees per subjected loan .
Net contract price as  per  EPC Contract for construction of Block 7 amount to  EUR 722,35 million   excluding VAT . 
During  negotiations with representatives of Chinese  EXIM bank was achieved an agreement for  loan duration of  20 years and  grace  period of  5 years ,  the  repayment  period  15 years . 
The participation of the loan for financing of the Block  is  85 percentage , while the remaining percent of  15 %  will be from the funds of Elektroprivreda BiH.  
By the construction  of  Block 7  at TPP Tuzla , Elektroprivreda BiH  will  have  production  capacity   of  great energy efficiency .  So involving  replacement of the Block 7  will  be stopped  Block 3 and Block 4.  Due to its efficiency , ecological parameters and justifibality Block 7 will use as replacement also for Block 5. and  6.  which will be into operation as per required .  
Block 7 is anticipated to operate in coogeneration mode  by which will be provided longterm supply of heat  energy for the cities and design with modern technologies ( BAT) ensuring to be emmision of  polutants below allowed limited values and requests of  EU  and BiH legislatives  .
For production of electric and heat energy at  the Block  7  is  predicted  to be use lignit coal from Coal Mine Kreka.